UAE Property: ‘Can my landlord increase my rent in Abu Dhabi by Dh15,000 in one go?’

Question: I live in Al Reef Downtown in Abu Dhabi. My landlord wants to raise my rent from Dh63,000 ($17,154) to Dh78,000, claiming this is “fair market value” now. But when I check listings, I see everything from Dh60,000 to Dh75,000, nothing consistent. There’s also no rental index like Dubai’s to refer to. How do I know if this increase is reasonable, and what can I realistically negotiate? SP, Abu Dhabi

Answer: For several years, Abu Dhabi had a rent cap. This was abolished in November 2013, but as a result of resolution No 14, the annual 5 per cent cap was reintroduced with effect from December 2016. This means that a landlord in Abu Dhabi cannot raise the rent by more than 5 per cent at the time of renewal.

This cap applies regardless of where the broader market sits. So even if the market rate in Al Reef has risen sharply, your landlord cannot legally increase your rent from Dh63,000 to Dh78,000 in one renewal. That would equate to a 24 per cent jump, which is far outside what the law now permits.

All advertised listings will have a degree of variation, and remember that vacant rental listings will always be worth more than a property with an existing tenant. Online asking prices can fluctuate depending on how urgently a landlord wants to lease or how optimistic they might be, but when it comes to renewals, the only number that matters is the lawful maximum, not the highest figure a landlord can find online.

You are well within your rights to remind your landlord that your renewal rent can only be adjusted by 5 per cent. In your case, that means the new rent should be about Dh66,150, not Dh78,000.

I would suggest communicating this politely in writing and referencing the rent cap issued by the Abu Dhabi Department of Municipalities and Transport. Once the rule is pointed out, most landlords fall in line.

If the landlord insists on the higher figure or attempts to use the market argument to justify it, you can take the matter to the Abu Dhabi Rental Dispute Settlement Committee, which has been applying the 5 per cent cap consistently since the regulation took effect.

Q: I bought a two-bedroom apartment in Mina Al Arab, Ras Al Khaimah. Over the last two years, my service charges have gone up by nearly 20 per cent. I’m happy with the community, but these charges are starting to impact my rental yield. Is this trend happening across RAK, and do owners have any recourse when charges keep climbing?