01 Nov 2019
No Rent Hike in Dubai for 3 Years
A new draft rental law has proposed in Dubai. As per the law rents of apartments in Dubai should be fixed for the first three years of signing the contract between the landlord and the tenant. According to the new draft law the landlord or his representative cannot charge any commissions or fees.
The new draft rental law in Dubai which is expected to be passed soon by the emirate’s Supreme Committee for Legislation confirms that the lease term must be certain, and if it is not specified in the agreement or if the claimed period cannot be substantiated, the lease is deemed to have been held for the period specified for payment. Rent allowance, noting that if the contract does not include that period, it is calculated on account of the rent paid as per the indicators of determining the rent allowance.
The draft clarified that to deal with contracts concludes before the new law, the increase will be calculated three years after the date of entry into force of the law, if it is approved, in accordance with the index of rents, but also without notice.
In the draft there is a clause related to fines on the landlord or landlord in case of increasing the rent allowance in contravention of the new draft law, specifying that the landlord or his representative may not charge any commissions or administrative fees from the tenant to cover administrative or other costs.
The draft law clarified in one of the items related to problems of rent allowance that the allowance for rental properties for housing purposes includes the use of services and facilities for the leased eye, such as swimming pools, playgrounds, gyms, etc., unless the parties agree otherwise. The rental allowance includes parking in accordance with the regulations and instructions issued by the competent authorities in this regard.