RERA Rent Calculator Dubai: How Does It Work?

Dubai’s rental market is really dynamic with a vast range of commercial and residential real estate properties at your disposal. However, navigating the complexities of the rental market is not an easy task. Fortunately, Dubai’s government has taken several steps to enhance transparency in the rental sector of the region.

One step in this direction is the launch of the RERA rent calculator which helps both landlords and tenants figure out the permissible rent increase as you renew your lease.

This free, user-friendly tool gives you a better understanding of the potential rental adjustment which makes sure the rent increase is within the legal boundaries. This way, using this calculator both parties can protect their interest by making more informed decisions.

This blog explores the ins and outs of the RERA Dubai rental index calculator to help you understand what it is and how it works. So, without any further ado, let’s get right into it.

• What is RERA?
• RERA Rental Increase Rules
• What is the RERA Rental Increase Calculator?
• How Does the RERA Rent Calculator Work?
• Benefits of Using the RERA Rent Calculator

What is RERA?

Established in 2007, the Real Estate Regulatory Agency (RERA) is a subdivision of the Dubai Land Department (DLD) that deals mainly with the real estate sector in the region.

This government agency is responsible for supervising real estate market development, setting guidelines for local and foreign investors, and enforcing laws pertaining to real estate.

RERA imposes strict regulations on landlords, brokers, as well as developers, to ensure transparency and accountability in all real estate transactions. RERA Dubai rent increase law also licenses and regulates real estate professionals which prevents fraud. Moreover, the dispute resolution mechanisms set forth by RERA promote amicable settling of the rental conflicts.

RERA Rental Increase Rules

RERA rental increase is done based on the RERA rental index which can be calculated with the rera rent calculator. This tool helps landlords and tenants determine the appropriateness of the rent increase. It is also notable that the landlords can only increase the rent once a year. They also have to notify the tenants 90 days in advance.

Following are some rental increase rules that you need to keep in mind

• The amount of rent increase is based on how much lower the current rent of your property is compared to the average market value of a similar real estate.
• No rent increase is applicable if the current annual rent falls below 10% of the calculated market value.
• A 5% rent increase is applicable if the current rent you are paying is 11% to 20% below the average market value.
• A 10% increase is applicable when the rent is 21% to 30% below the average market value.
• A 15% rent increase will be applied if your rent is 31% to 40% below the average market rate.
• The maximum rent increase that can be applied is 20%. This is for the cases when the rent is 40% or more below the RERA calculated market value.

What is the RERA Rental Increase Calculator?

Back in 2013, the ruler of Dubai H.H Sheikh Muhammad Bin Rashid Al Maktoum issued an official decree no. 43 to control illegal rental increases in the region. This decree sets limitations on the annual rental increase. 

To cap rental increase, this decree introduced the RERA rent calculator which works per the rera rental index which varies yearly. 

This is a sophisticated tool available on the Dubai Land Department website that gives you an accurate estimation of the maximum permissible rent increase for real estate properties. This tool works by comparing the current value of real estate with the average market value as established by the RERA rental index.

Landlords or tenants can simply add details of their property to this tool and it will give them insights into the permissible rental increase in no time.

How Does the RERA Rent Calculator Work?

Here is how you can use the RERA rent calculator

Step 1: Go to the official website of the Dubai Land Department and click on the “Inquiry About the Rental Index” option. You can also use the Dubai REST app to access this calculator.

Step 2: If you select the first option i.e., Title Deed Number, then you can simply add the certificate number, year, property type, contract end date, and current rent to find the rent increase. You can also choose the property type from the residential, commercial, industrial, or staff accommodation options and then proceed from there. 

Step 3: After that, based on your property type, you will have to fill out the relevant information. This includes things like property location, property size, number of rooms, etc. 

Step 4: Then you will enter your current annual rent along with the end date of the lease contract. 

Step 5: Complete the Captcha verification process and then click on the calculate button. 

Step 6: The display will show the current estimated value of the property.

Step 7: Based on the market value at the moment and its difference from the current rent, the calculator will give you the maximum permissible rent increase. 

Step 8: The calculator will give you the following details

• Estimated market value of the property
• Current rent
• Maximum rent increase amount
• Percentage increase 
• The rent amount after applying the increase
• Rental index for a similar real estate property 

Benefits of Using the RERA Rent Calculator

Here are a few benefits of using the RERA index calculator:

• It helps landlords ensure compliance with the RERA rent increase regulations.
• It gives real estate owners insights into market rates which helps them set competitive rental prices.
• It saves tenants from sudden excessive rent hikes.
• It helps in dispute resolution in cases when a landlord imposes an unjustified rent increase.
• This is an objective tool for determining rent increase which promotes transparency in the rental market.
• It promotes fair and equitable rental practices which ensure market stability.

Conclusion

The RERA rent calculator is an innovative tool that can create a healthy rental environment both for the landlords as well as tenants. By using this tool the right way, it is possible to create transparency in the rental market and build trust between the tenants and the landlords.

This tool can also help avoid disputes and settle negotiations when it comes to rental real estate. Thus, by providing these facilities along with promoting accountability, the rera rental increase calculator can protect the interests of both the tenants as well as landlords.

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