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Dubai: The five per cent rent cap will remain valid in the absence of any new announcement, Gulf News has learnt.
According to the rent committee, landlords still cannot increase the rents beyond five per cent. And tenants can file complaints with the committee if there is violation on the existing rent law.
Residents have been confused whether it is lawful for landlords to steeply increase the rents while landlords maintained that they could do it since the rent cap law of 2008 is no more valid.
Mohammad Ahmad Al Shaikh, general secretary of Rent Committee at the Dubai Municipality said, article 26/2007 of the rent law that states rents should remain same for two years is very much in place.
"Those [landlords] who have increased the rent last year cannot do it this year. But those who have not, can only introduce new rents. The confusion is on by what percentage they can increase," said Mohammed Al Shaikh.
According to him, tenants who are faced with rent increases by more than the current five per cent can register their complaint with the committee. "After studying the case, it is up to the committee to take appropriate decision," he added.
A senior official who deals with complaints at the rent committee told Gulf News that they are still applying the five per cent rent cap while dealing with disputes. "It is still applicable because so far there is no new announcement on the issue," said the official requesting anonymity.
Residents who are caught up in rent disputes with their landlord said their complaints are accepted by officials if the rents are increased by more than five per cent.
Mujeeb, an accountant said the rent committee has clearly instructed him that his landlord cannot increase the rent by more than the stipulated cap of five per cent.
"I live in the old Pakistani consulate area and am paying Dh25,000. In 2008, the rent was already increased by around seven per cent. Now as my contract is due for renewal, the landlord has drastically increased the rent to Dh50,000," said Mujeeb.
He has already registered a complaint with the committee.
Sadiq Mohammad, a resident of Al Baraha said the rent committee has asked him to negotiate with the landlord and clarify that increase of more than five per cent is unlawful.
"I am paying Dh45,000 for a studio and this year, they are increasing it by Dh7000, which is more than five per cent. When I went to register the complaint, the officials have asked me to go back to the landlord and tell him that he can increase the rent only by five per cent," said Sadiq.
Officials said they have received a total of 320 complaints since January this year, and majority of the cases involve the issue of rent increases beyond the rent cap.
- 8,000 total complaints received by rent committee in 2007
- 9,000 total complaints received by rent committee in 2008
- 320 complaints received by rent committee so far this year
How soon do you expect rents to come down? Are you still suffering due to increasing rents? Should the government still impose a rent cap if landlords continue increasing rents?
Your comments
During this worldwide financial cruch, the rents should go down or atleast frozen till its over.
Basil Chaudhary
Ajman,UAE
Posted: January 14, 2009, 14:32
My landlord increased the rent from 45,000 to 70,000. Is the law not applicable for him?
Tanveer
Mumbai,India(Dubai)
Posted: January 14, 2009, 14:05
Every year,after Renewal time
The Commitee is announcing Rent Cap,which is of no use.Even if rent cap is there, there is no use.Because Lanlords are increasing rent according to their wish.
Ganga
Dubai,UAE
Posted: January 14, 2009, 14:02
Thanks to Rent Committee to clear the issue as I Was very confused if no rent cap land lords will black mails us and to change and go for a new flat is not easy
Ali
Dubai,UAE
Posted: January 14, 2009, 13:54
last year my rent was AED31500.This year he demanded aed 50000.i went to rent dispute in sharjah.meanwhile my owner was troubling me.i went to rent dispute sharjah and informed they told me to come after 2 days. i went after 2 days. they told me come after 2days. i went 3 times.my owner from 50000.he came to 45000.i told my owner about the finincial crises. i had to agrue with him.from 45000.he came to 40000.finaly i dnt have time to go to rent dispute.owner said this is final 38000 or you vacate the flat.again we had agrument.final he came down to 35000 .which i had to agree.i dnt have option.
Ashfaq
Sharjah,UAE
Posted: January 14, 2009, 13:51
We have been staying in the current premises for more 12 years with an yearly increase and additional charges. With the current situation the depression of rent cap could be minimum 15 to 20 % and not an increase. As it is the extra amounts paid to the landlords apart from the 5% Rent Cap amounts to a 30 to 40% increase in rents and who will be taking care of the extras?
Priya
Dubai,U.A.E.
Posted: January 14, 2009, 13:48
My landlord practically doubled my rent from 37,000 to 70,000 for studio flat. Filed a complaint with dubai municipality. Hope this works.
Ali Mohamed
Deira,UAE
Posted: January 14, 2009, 13:46
Our rent is been increased more then 100%, it was AED 48k
Sara Abbas
Dubai,UAE
Posted: January 14, 2009, 13:33
We are paying rent for 2 Bedroom Apt in Deira of Dhrs 31000 p.a. This year our landlord increased the rent more than 100% i.e., 70,000 dhrs. p.a. and he enforcing us to pay his required rent and he alreadly made the contract now how can we file the case against him? I think there should be a law if he made the contract with more than 5% of increased rent so we can file the case against him.
Afaq
Dubai,United Arab Emirates
Posted: January 14, 2009, 13:17
There should be a limit for everything. When we question the landlord on the rent increase what he says is to leave the place..thats not right..what if all the landlords do the same thing.where will people go? I seriously suggest that this matter should be looked into and the govt should help the residents.
Philip
Dubai,UAE
Posted: January 14, 2009, 12:42
I request all the Landlords to kindy go with the current law of 5% increase. Also Landlord claims that RERA have given some rental index to them and they will not obide with 5% rental increase.
Somu
Dubai,UAE
Posted: January 14, 2009, 12:33
For me no problem if you increase the house rent yearly, if there is maintenance work or improvement. but for past 7 years i had this increse yearly but even 1 of these 7 years they did not do any maintenance to our house... I was just telling them, like its up to them if they will do it.
Emma Demetrio
Dubai,UAE
Posted: January 14, 2009, 12:32
our landlord has allowed sharing in our buillding. When I tried to questioned why he hiked the rent by 10% after a year he said that because I shared the flat. how can you apply the law to this type of landlords.
James
Dubai,UAE
Posted: January 14, 2009, 12:27
My landlord has increased my rent from AED 22,000/- to 35,000/-. That is an increase of almost 60%. I have still not negotiated with my landlord. I will be filing a complian if my landlord does not reduce the hiked up rent.
Fahad
Dubai,U.A.E
Posted: January 14, 2009, 12:27
Its good that we have 5% Cap in Dubai. When the Cap Role started , some real estate and Landlords still insisted to increase the rent as much as possible . But Now Every Body knows and take care about it .
But We have still problem in Sharjah. My home rent was 45000AED last year , But they are forcing me to renew My contract by 75000 AED for this year.
I think its a right time for Sharjah to have Rent Cap As well
Arman
Sharjah,UAE
Posted: January 14, 2009, 12:25
Our landlord ( a real estate firm) is charging us compulsory
to pay their cleaners 50 dirhams
each person, while cleaning is very seldom done. We also pay for pest control which is not
being done.
Tisha Molina
Dubai,United Arab Emirates
Posted: January 14, 2009, 12:23
The thing is that the landlords will find another way to get more money, if it's a "service fee" if you renew your contract or "maintenance fee". But if the people are afraid to file a complain because of thinking the landlord will not renew the contract in this case - then it is no wonder that they do what they want. And who thinks - if no new rent cap is announced that the current one is not valid anymore??? Only landlords can think in this way...
Thomas
Dubai,UAE
Posted: January 14, 2009, 12:20
It is very difficult to get house on rent for them who are new to UAE. For single B/H Landlords/Agents are demanding 110,000 to 140,000 AED. How can people afford this. Something needs to be done to control this situation.
Mahendra
Abu Dhabi,UAE
Posted: January 14, 2009, 12:13
this real state company and landlord is not following this imposed rent cap. its better also to impose heavy fine for those not following this rent cap committe.
Vincent
Sharjah,UAE
Posted: January 14, 2009, 11:09
The real estates and land lords are trying their last drop of luck. Good luck to them by end of year 2009.
Mansoureh
Sharjah,UAE
Posted: January 14, 2009, 11:09
am staying in deira nakheel road, my previous contract amount 40,000/dhs. now the new contract landlord say increased 65,000/
Amir
Dubai,UAE
Posted: January 14, 2009, 10:50
There is no justification for landlords to increase house rents under the present conditions. The rents are already very high. What is needed is a total freeze on house rent increases for at least 3 yrs.
K. Sriram
Dubai,UAE
Posted: January 14, 2009, 10:25
The RERA should come down heavily on erring Landlords who still increase the rents beyond the 5% cap. We all are facing the same problem; our landlord wants to increase the rent by more than 15% this year!
Vandana Thadani
Dubai,UAE
Posted: January 14, 2009, 10:16
The landlords are actually ignoring the conditions of tenants, they are only considering about their cash flow.
Faisal
Dubai,UAE
Posted: January 14, 2009, 10:05
This kind of recession and everybody is worried about their future job and other things, i think the authorites should take strong action to make rent calm down, or at least not increased more than 5% .
Omar Javed Butt
Dubai,UAE
Posted: January 14, 2009, 10:04
Rents would come down sooner than expected as many expatriates are leaving the country after having lost their jobs. As supply would then be more than demand rents will come down automatically due to surplus houses.In this event landlords would try to increase rent to cover up their loss. A rent cap in any event is necessary as it is safe for both the landlords as well as the tenants. Neither should a person take advantage of the economic recession nor should he suffer due to it.
Naina Nair
Sharjah,UAE
Posted: January 14, 2009, 10:04
thank u very much for clearing the rent law, people were very confused. once again thank u to gulf news and Rent comittee.
thanks
jitender bherwani.
Jitender Bherwani
Dubai,UAE
Posted: January 14, 2009, 09:50
The rent cap of 5% has to be strictly enforced to stop the landlords from increasing the rents as they like which in some cases it is more than 100%.I took a studio flat for Dh44000 during this month and understand that the previous tenant was paying Dh 32000 for this studio flat.The landlord has increased the rent by 30%.The landlords who violate this rent cap of 5% must be dealt with stern action by the concerned authorities.
Syed Abdul Thaki
Abu Dhabi,UAE
Posted: January 14, 2009, 09:46
The Landlord of my flat increase the rent more than 5%, and i don't know how to complain, no any other option but to pay which he demand. As i have to stay with my kids.
Fiaz Sultan
Abu Dhabi,UAE
Posted: January 14, 2009, 09:43
I live in an apartment on Shaikh Zayed Road that. My contract is to be renewed soon and upon checking with the landlord i was informed there is no rent increase, but that i need to pay 10% maintenance fee from my original rent. this is another way of trying to increase my rent by 10%.
Nizar
Dubai,UAE
Posted: January 14, 2009, 09:41
I think its fair enough provided all Landlords abide by the law.
Our landlord increases as he wishes every year. Last year it was increased by 12% and now he is increasing it this year by 25%
Crystal Sequeira
Dubai,UAE
Posted: January 14, 2009, 09:41
My landlord has already took advantage of this uncertainty and on fifth of Jan, he forced me to pay 30% increase in rent (from 27000 to 35000) for my studio apartment. It has been a week I paid him the rent, Can I still complaint in Rental Committee.
Rizwan Z Khan
Dubai,UAE
Posted: January 14, 2009, 09:38
In a time of economic downturn and mass redundancies, a rent cap is more necessary than ever. But even more valuable would be a new law giving all tenants the right to pay rent monthly.
Bill McCabe
Dubai,UAE
Posted: January 14, 2009, 09:24
i was paying rent for two bedroom apt in sharjah Dhs. 35,000 in 2007 and landlord increased 45,000 in 2008 and now again he wants to increase 10000 more or you leave the flat he said, if i go and complain he says i want to keep my family members and you will not get the flat. Very difficult to stay here because of heavy rent and due to recession no company decrease the salary also.
Precilla
sharjah,uae
Posted: January 14, 2009, 09:21
The increase in rent for the flat I stay is around 50% this year. "Take it or leave it" attitude of the landlords/real estate agents is really painful.
Though there is a rule first three years there should not be any increase they have increased the rent every year. And the most unkindest cut - of increasing it by 50% is brought out when the situation in UAE as well as whole world is having severe economic crisis.
Gopaumar
Sharjah,UAE
Posted: January 14, 2009, 09:12
Most of the time people only talk about those who are renting on apartments, big villas that are located in big developements around dubai.
well how about those people who are renting in small villas and very old apartments like in deira, hor al anz, satwa, karama etc. they rents are still getting high because land lords are not concerned with the rent cap
Jhay
Dubai,UAE
Posted: January 14, 2009, 09:11
We have been in the same property for 3 years , our lease has expires, landlord gave us ntoice to leave, and of course he verbally told us he will accept double the rent we are paying now!
Paul Bruce
Dubai,UAE
Posted: January 14, 2009, 09:05
Authorities in Sharjah should also impose a rent cap. It is urgently required.
Auta Fernandes
Sharjah,UAE
Posted: January 14, 2009, 09:04
It is still unclear whether the rent cap applies in 2009. According to the applicable law 27/2007 not 26/2007, "Rental increase shall be limited to a cap of 5% of the annual rent value inrespect of tenancy contracts to be renewed in 2008, provided that rent has not been increased in 2007". This law is very specific and does not refer to any rent increases that may be applied in 2009. Authorities need to clarify this law or issue a new ruling.
Tom Wilkins
Dubai,UAE
Posted: January 14, 2009, 09:04
I have flat direct from owner and he is increasing Dhs 5000 every year. He is not listening to any rent cap system. I am unable to complain because next time he will not renew the cntract if I make any prolem to him. I think RERA shoudld force all the landlords to register with them in new ejaja site. Otherwise it is impossible to stop them.at present only landlord and realestae company can register in ejaja but the other landlords who has no agents are getting away.
Anjan
Dubai,UAE
Posted: January 14, 2009, 08:58
If Rent Cap will finish , than there will be panic every where , we are already facing problems under global financial crisis
Towqir Hatim
Dubai,U.A.E
Posted: January 14, 2009, 08:44
Now most of the real estate firms are naming the increase as Maintenance charge and putting some percentage against it. This will again do the same favour for the real estate firms. For me they allowed 5% as annual maintenance charge....
Sudheer
Dubai,UAE
Posted: January 14, 2009, 08:43
My rent in Al Barsha area is increased from 52000 to 125000 for 2 bedroom aprtment
Ausaf
Dubai,UAE
Posted: January 14, 2009, 08:43
I am Paying Dh 78000 for One room with seaperate bath room and sharing kitchen in Karama. We complained about this to the landlord. He is not interesting to hear anything.In Karama, Bur Dubai areas are increased the rent very high.
Anoop
Dubai,UAE
Posted: January 14, 2009, 08:38
After yesterday article by Rera Head our Landlord had increase the rent from 39,000 to 65,000/-
Rajesh Nathani
Dubai,U.A.E.
Posted: January 14, 2009, 08:22
No one follows the rent cap, my landlord had increased 15% and when i questioned he said leave the place. during this crisis the rent should go down instead of rent cap.
Abdul Razzaq
Dubai,UAE
Posted: January 14, 2009, 08:17
Rent is increasing drastically day by day. Authorities should do something for this rent by fixing it as per designated area.Land lords ask any rates for their property and also real estate agent ask a huge brokerage charge now a days.
Aamir Imam
Sharjah,UAE
Posted: January 14, 2009, 08:09
Now 1 bed room flat in Discovery Garden is available for Dhs 70,000. Within few days it will come down again may be around Dhs 50,000, although most of the people will not be able to afford it under this economic crisis.
Saqeer . S.V
Dubai,UAE
Posted: January 14, 2009, 08:02
Yes, even 5% is like a pinch though not every company in Dubai give raise to the employee every year (mind it, specially in this current financial crunch).
Shezad
Dubai,UAE
Posted: January 14, 2009, 07:39
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