To Fix Rental Disputes, DLD Mulling New Law | Dubai

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In what could be a good news for many out there, DLD (Dubai Land Department) is planning on a new law to fix rental disputes in Dubai. Mohammed Ahmed Yahya, deputy CEO Rental Affairs Sector, DLD, mentioned about the new law concerning rental disputes during an interaction with the media.

Mr Yahya suggested that the new law, which is still being worked on, ‘will make things simpler for landlords and tenants’.

“When there is a dispute between a landlord and tenant, it takes quite some time as there are certain gaps in the existing laws. We are now working to close this gap between the landlord and the tenant,” he said.

At present, the landlord-tenant relationship is regulated by Law No. 26 of 2007 as amended by Law No. 33 of 2008.

Mr Yahya made it clear that there will not be any reduction in the fee either. Currently, the concerned party (either landlord or tenant) is required to pay 3.5% of the annual rent as fees to have rental disputes resolved by the Rental Dispute Settlement Centre (RDSC), the judicial arm of DLD.

He, however, did not specify a timeframe for the new law, while also ruling out any changes to decree number 43 of 2013, which limits the landlord’s capacity to increase rent during the renewal of tenancy agreement.

Decree number 43 of 2013 stipulates —

“The maximum rent increase percentage for properties in the Emirate of Dubai shall be determined upon renewal of the properties lease contracts, as follows:

  1. a. there shall be no rent increase for properties if the rent is 10% less than the average rent for similar properties;

  2. 5% of the rent value of the real estate unit should its rent be 11% to 20% less than the average rent for similar properties;

  3. 10% of the rent value of the real estate unit should its rent be 21% to 30% less than the average rent for similar properties;

  4. 15% of the rent value of the real estate unit should its rent be 31% to 40% of the average standard rent for similar properties;

  5. 20% of the rent value of the real estate unit should its rent be 40% less than the average rent for similar properties.”

In order to make the landlords and the tenants conscious of their rights and responsibilities, special publicity campaigns will also be launched by DLD.

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