The tenant was based on the ideal rent prevailing in the same area
"Dispute settlement" obliges a real estate owner to reduce the rental value of a commercial store
“Dispute Resolution”: “Rent Increase Calculator” is a criterion for increasing or decreasing the rental value.
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The Rental Disputes Settlement Center, the judicial arm of the Dubai Land Department, obligated a real estate owner to reduce the rental value of a tenant, due to the decline in rental values in his area of residence.
The Center explained that the case is related to a rented shop and a defendant owner, as the tenant of the shop demanded in the lawsuit to compel the defendant to reduce the rental value of the commercial shop, given that the rental value of the same leased property in neighboring properties is less than the rental value in his rental contract.
The tenant proved this through a copy of the results of the proverbial rent index from the rent appraisal committee, in addition to a notification sent by email to the owner, informing him of his desire to reduce the rental value 90 days before the end of the rental contract, in addition to a copy of the rental contract.
The Center stated in its judgment in which it supported the tenant’s request to reduce the rental value, that Law No. (26) of 2007, amended by Law 33 of 2008 regarding the regulation of the relationship between lessors and tenants of real estate in the Emirate of Dubai, stipulated that the lessor and the lessee must specify the rent allowance in the lease contract. And if the two parties neglected to appoint him, or if it was not possible to prove what they had agreed upon, the rent allowance would be the same as the wage.
And in the event that any of the parties to the lease contract wishes to amend any of its conditions in accordance with Article (13) of this law, he must notify the other party of this no less than 90 days before the end of the contract, unless the parties agree otherwise.
The center indicated in the reasons for the ruling that there is a possibility to reduce the rental value during the validity of the lease contract, based on a number of criteria, including the rent of the ideal prevailing in the similar real estate market in the same region, pointing out that the law regulating the rental relationship developed an index (the rental increase calculator) Of Dubai Land Department, as a criterion for increasing or decreasing the rental value.
He stressed that whoever wishes to use this standard may file a lawsuit and be guided by his request to increase or decrease the rental allowance, provided that the introduction of these criteria is subject to the discretion of the judicial committee that examines the case, with the obligation to inform the other party.
It is noteworthy that the rent of the commercial shop in question has been reduced by 32 thousand dirhams, in line with the rental index.
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