Landlords are even interested in offering incentives to speed up the process
Even after the introduction of Dubai’s new RERA Rental Index, eviction notices from the landlords to the tenants is still prevalent. Although the rental index allows landlords to adjust the rents according to the market rates, many still prefer to evict the tenants to modify and reset rental agreements. The landlords are even offering incentives (in financial terms) to speed up the entire process of 12-months’ notice period.
These financial incentives mean “offering to pay a certain amount of money for the new rents that the tenants will have to pay on renting or buying a new home.” These types of deals are becoming quite common. This is still a profitable deal for the landlords as getting access to their properties at the earliest will further add to their savings – even if they close the deal with their previous tenant.
As per the Dubai rules, landlords must issue a 12-month eviction notice when:
- Planning to move into their rented home
- Planning to sell out their rented property
- Planning to renovate the property
If landlords obtain a certificate of new valuations, legally, they have to follow the below set permissible rent increases:
- For properties whose current rents are 0-11% under market value, there can be no increase.
- For 11-20% under market value, there can be a 5% increase.
- For 21-30% under market value, a 10% increase.
- For 31-40% under market value, a 15% increase is permitted.
- For 41% under market value, the ceiling on rent increase is 20%.
Source: Business Outreach
