This information is important for a landlord and a tenant; let’s dive into the Q&A format.

Q1: What’s new in the rule about the Rental Valuation Certificates in Dubai?
Rental valuation certificates can only be issued from April 1st, 2024, in case there is a legal order or judgment that calls for such valuation of the property.

Q2: How was it previously?
The process was earlier administrative and easy, requiring very few documents like photos of the property and its details to issue a rental valuation certificate.

Q3: Why was this change necessary?
Ease in the availability of rent valuation certificates gave a discrepancy between the latter and the RERA index. Being critical for the determination of average rent and rental per cent increases, discrepancies do cause confusion and inconsistency.

Q4: Of course, can you give an example of such discrepancies?
The examples include a rental valuation certificate that lists the rent for a property way higher or lower than what the RERA index stipulates. It would imply unfair increases or decreases in rent and hence disputes between landlords and tenants.

Q5: What is the new requirement for issuing a rental valuation certificate?
This means you will have to apply for a judgment copy or an order regarding the assessment of rent for the property to issue a Rental Valuation Certificate, effective from today’s date, and this has been confirmed from the official website of Dubai Land Department.

Q6: Why is it so?
It coincides with the very recent update, which happened in March 2024, regarding the RERA index. The objective here is to have valuations that are consistent and credible.

Q7: How does this affect the average rent calculation?
The only tool to determine the average rent before any court proceedings is the RERA index. This is in line with Decree 43 of 2013, particularly Article 3, which states: “With regards to the percentage increase, the average similar rent shall be determined in accordance with the ‘Rental Index in the Emirate of Dubai’ approved by the Real Estate Regulatory Agency.”

Q8: When can one get a rental valuation certificate now?
You can get a rental valuation certificate only after a court dispute on the valuation given by the RERA index and its subsequent increase.

Q9: What is the procedure to get a rental valuation certificate now?

• You have to file a substantive court case objecting to the valuation given by the RERA index.
• An expert is assigned who will inspect the property and determine the average similar rent.
• You can then get a rental valuation certificate based on such judgment in case the court gives judgment in favor of property re-evaluation.

Conclusion

This update is meant to bring uniformity and reliability to Dubai’s rental market. Both landlords and tenants should be informed of these new requirements as a way of ensuring that fair rental valuations are performed in observance of the rule of law.