x Abu Dhabi, UAEThursday 27 July 2017

Rent increase of 5 per cent is reasonable in Dubai

Landlord wants to raise the amount his tenant pays in Dubai Marina, but does not want to be greedy.

I own a two-bedroom apartment in Dubai Marina and have a tenant in there. His lease is due for renewal in August and he pays us Dh130,000 a year, which we allow him to pay monthly. He does not pay the Dewa bill, as we settle this directly, and the apartment is fully furnished. We do not want to be greedy, but we know that rents are increasing, so we would like to increase the rent by 5% and ask him to pay the bills himself. Is this reasonable and permissible? BD, Dubai

You can make changes to the terms of the rental agreement provided you give your tenant 90 days’ notice. Any increase must be no more than the amount permitted by the Real Estate Regulatory Authority (Rera), which is available online. I would expect that a 5% increase would be well within guidelines in the current economic environment and it is not unreasonable to expect a tenant to pay his or her own utility bills.

Keren Bobker is an independent financial adviser with Holborn Assets in Dubai. Contact her at keren@holbornassets.com

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