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The Rental Increase Calculator is an innovative solution for the real estate market

November 2017

November 12, 2017 | 9:30 | Dubai

Dubai Land Department (DLD) is a pioneer in finding proactive solutions for ensuring transparency and enhancing the comfort and happiness of all parties in the real estate market. Through its management and regulatory arms, transactions are closely monitored in addition to the regulatory requirements of the real estate rental management sector and any disputes that arise between parties to a rental contract.

DLD allows all parties to access information about their rights and obligations via a range of electronic and regulatory systems. The Rental Increase Calculator is one of the systems that is most commonly used by landlords and tenants.

How the Rental Increase Calculator works

The Rental Increase Calculator is an electronic service that was created by DLD to calculate rent increase percentages in accordance with Decree No. (2) for 2011. The service determines the increase based on the average decline in the region’s rental value, depending on the specifications of the unit in question, including its use, location, number of rooms, and a variety of other parameters. The increase is set at a maximum of 20%, from 21st December 2013 to date, and the increase is divided as follows:

  • If the rent is 10% less than the market value, there is no increase
  • If the rent is 11-20% lower than the market value, the maximum increase may be up to 5%
  • If the rent is 21-30% lower than the market value, the maximum increase may be up to 10%
  • If the rent is 31-40% lower than the market value, the maximum increase may be up to 15%
  • If the rent is lower than 40% or more of the market value, the maximum increase may be up to 20%

The Rental Increase Calculator is a guide for customers who would like to rent or lease any property in Dubai, providing them with a better understanding of rental fees for various properties in different areas of the Emirate. The service may also be referred to if disputes arise between landlords and tenants over rental increases. In this case, the beneficiary must visit the official DLD website or download the ‘Ejari’ smart application to access the Rental Increase Calculator and make an inquiry by entering the required data.

The Rental Increase Calculator can be accessed through DLD’s website (dubailand.gov.ae) via the services option on the main menu. From there, customers must select the e-Services option to access the rental calculator page. They must then choose the type of property (residential, commercial, industrial or labour accommodation) and then specify the area (Deira, Bur Dubai or freehold). By submitting the lease expiry date, type of property, area, number of rooms and current annual rent, users will be provided with the average value of the rental increase.

 

Ejari Smart Application:

The ‘Ejari’ smart application was launched by DLD in 2016. It provides tenants and landlords with rental services including the Rental Increase Calculator and a variety of other lease management processes. Customers can download the ‘Ejari’ smart application on Android and IOS smartphones to access the Rental Increase Calculator.

Mohamed Yehya, Deputy Executive Director of the Rental Affairs Sector at DLD, commented: “The ‘Ejari’ smart application provides landlords, tenants and property management companies with many services including lease registrations and renewals. These services can be accessed at any time and from anywhere in the world, which offers customers a new level of flexibility and ease when handling lease management processes. The application is part of our ongoing efforts to enhance our customers’ satisfaction and happiness.”

Yehya concluded: “This application also protects the rights of all landlords, tenants and property management companies; contributes to increasing the efficiency of lease management processes; and reduces the cost and time required to complete lease registrations. In addition, the application provides real-time information on the details of leasing operations.”

 

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