Landlords Increasing Rents, Changes in Rents, Forced Resignation, & more.

Host

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Host
It is Drive Live. NLT and I are with you until 7 o’clock, and now it’s Drive Live Talks Legal. This afternoon, our guest as ever is Ludmila Yamalova. Questions can be sent to 4001. You can text the old-school way, or if you’re new school and trying to catch up, you can download the app and text us for free. Or if you’d rather call—the really old-school way—you can reach us at 43 1010.

Good to have you here, Ludmila! Sorry, I was miles away for a moment.

لودميلا يامالوفا
Good to be here.

Host
Here’s a question for you: “My rent contract expires at the end of January 2018. This is my first year renting this property. By when does the landlord have to inform me if they’re increasing my rent? The RERA index does allow it. Can I refuse the increase if the landlord misses the deadline to inform me of the increase?”

لودميلا يامالوفا
There are two parts to this:

1. The landlord must inform you of any rent increase 90 days before the expiration of the current lease.
2. Any increase is only allowed if the RERA index permits it.

Since January 2018 is still a few months away, I recommend checking the RERA index closer to that date, as rent rates may change.

As for whether you can refuse the increase if the landlord misses the deadline—yes, you can. By law, the landlord must:

• Notify you of the rent increase 90 days before the lease expiration.
• Obtain your agreement to the increase.

If the landlord fails to meet these conditions, you are not legally obligated to accept the increase.

However, if the increase falls within the RERA index allowance, and the matter goes to the rental court, the court will likely side with the landlord.

Host
That’s an important distinction. I’ve been in a similar situation. We hadn’t heard from our landlady for months, and about a month before the contract expired, we got notice of a rent increase. It was within the RERA index allowance but gave us less than 30 days’ notice.

We knew the law was on our side, but it was a process—we either had to move out or dispute it through the rental committee, which took some time.

لودميلا يامالوفا
Exactly. It’s important to remember that the law doesn’t automatically enforce itself. If you want to dispute an increase, you must take affirmative steps, such as filing a case with the rental committee.

Even if a tenant is in breach of the lease—for instance, by not paying rent—the landlord cannot simply show up, change the locks, and evict the tenant. Everything must go through the court system. That’s a crucial point to highlight, as many tenants worry they might suddenly lose their rights.

Host
It’s true—there’s often a misconception that landlords hold all the power. But it’s not always the case, as you’ve explained.

Here’s another listener question: “If the RERA index changes annually, how do I ensure I’m paying the correct rent amount? Are there any plans to refine the index further?”

لودميلا يامالوفا
Yes, the RERA index is typically updated annually, around January. However, there have been discussions about updating it more frequently and refining it further.

Currently, the index groups properties by location or area, but there are plans to evaluate properties individually based on quality and other factors. This could significantly impact how rents are calculated in the future.

For now, my advice is to stay vigilant and informed. Check the RERA index periodically and don’t assume that the current rates will remain the same.

Host
That’s good advice. Pat texted in to say: “There’s so much inventory out there—just negotiate or move. That’s what I did.”

لودميلا يامالوفا
Absolutely valid. It’s surprising that we’re not seeing more tenants negotiating rent reductions given the current market. However, from practical experience, landlords are often hesitant to lower rents, even with increasing inventory.

Many tenants prefer to negotiate with their current landlord rather than face the hassle and expense of moving, which can lead to them accepting increases they might otherwise dispute.

Host
It’s a catch-22 for many tenants. On one hand, there’s inventory available, but on the other, moving can be a big inconvenience.

لودميلا يامالوفا
Exactly. And while tenants have the upper hand in terms of negotiating power right now, it’s crucial to weigh the cost of moving versus staying and paying a slightly higher rent.

Host
Let’s take another question: “My landlord is insisting I sign an addendum stating that at the next renewal, I agree to pay a 10% rent increase or the RERA index increase, whichever is higher. This is in exchange for keeping the rent the same this year. Is this enforceable?”

لودميلا يامالوفا
No, it is not enforceable. Here’s why:

1. An addendum is an amendment to a contract and can only be valid if both parties agree. The landlord cannot unilaterally force you to sign it.
2. Even if you do sign the addendum, the Dubai rental law takes precedence over contract terms. Any clause that contradicts the law—such as allowing a rent increase above the RERA index—is not enforceable.

In summary, you are not obligated to sign the addendum, and even if you do, the RERA index will still apply at renewal.

Host
That’s clear and straightforward—thank you! Ludmila, as always, you’ve provided incredible insights.

لودميلا يامالوفا
My pleasure.

Host
That’s all we have time for today. If you have more legal questions, send them in for next week’s session of Drive Live Talks Legal. Ludmila Yamalova from Yamalova & Plewka will be back next Monday.

لودميلا يامالوفا
Thank you!