The new draft rent law in Dubai has confirmed that the landlord may not increase the rental allowance for residential property before the lapse of three years from the date of signing the contract between the landlord and the tenant.

According to the new draft law, the landlord or his representative may not charge any commissions or administrative fees from the tenant to cover administrative or other costs of any kind or name when concluding or renewing the lease.

Duration of the contract and increase of rent

In detail, the draft new lease law in Dubai, which is expected to be passed soon by the emirate's Supreme Committee for Legislation, states that the lease term must be certain, and if it is not specified in the lease 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 the basis of the rent paid according to the indicators of determining the rent allowance, as the case may be.

According to the draft of the project, which was obtained by «Emirates Today» copy, that the owner may not for any reason to increase the rental allowance for residential real estate before the expiration of three years from the date of the rental relationship between him and the tenant (three years from the date of signing the lease between the parties) The increase in the rental allowance, if any, after the expiry of that period shall be at the average of the average wage, according to the indicator of determining the rent allowance, without the need for notification.

The draft explained that for dealing with contracts concluded before the new law, the increase will be calculated three years after the date of entry into force of the law, if approved, in accordance with the index of rents, but also without notice.

Commissions and fees

The draft included a clause related to fines on the landlord or landlord in case of increasing the rent allowance in contravention of the new draft law, stipulating that the landlord or his representative may not charge any commissions or administrative fees from the tenant to cover administrative or other costs, whatever Their type or designation at the conclusion or renewal of the lease, even if the lease includes otherwise.

In addition, according to the new draft rent law, commissions are expected to be prohibited by the landlord or his representative.

Rent allowance

The draft law explained 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, health club, etc., unless the parties (landlord and tenant) agree otherwise.

The draft stressed that in all cases, the rental allowance includes parking spaces allocated to the property, in accordance with the regulations and instructions issued by the competent authorities in this regard.

Rents indicators

According to the draft of the new rents law in Dubai, it is the responsibility of the Dubai Land Department to determine the renting indicators for the emirate's properties, in accordance with the status, type and description of the property, the purpose of its use, its area, and the level of services provided to the tenants. Renting the prevailing example in the same real estate market in the same area, in addition to what is stipulated in any legislation in force in the emirate regarding the rental of real estate, and any other factors determined by a decision of the Director General.

- It is not permissible to increase the rent for old contracts

Only three years after the new law came into force

If approved.