UAE Property: ‘Can my landlord use updated DLD rent index to increase my rent?’

Question: I live in a middle-income community in Dubai , where rents are not very high. I have a reasonable landlord who has not increased rents arbitrarily in the past. However, I have been reading about rampant rent hikes across the city. I am worried that at my next renewal, my landlord will use the readjusted Dubai Land Department rental index to increase my rent. Is this update the reason for rent increases across the city? What does the updated rental index mean for me? Does it benefit me or the landlord? MM, Dubai Answer: The DLD rental index has been recently updated to reflect the increases in the rental market and takes into consideration all of Dubai. The index is a barometer of values, taking into consideration average rental amounts to give an indication of what similar units are valued for tenanted properties, whereas the rental property portals advertise vacant property values (market rent). Your landlord has the right to request an increase in rent, if necessary, based on the current market index. This adjustment will be reflected in your next lease renewal. However, it is important to note that any changes to a contract have to be communicated in writing, giving 90 days’ notice of the same. So, to answer your question, the index benefits both of you. Firstly your landlord, because it gives a more accurate figure for the rent, given it has been updated, but you are also benefiting because the index is still much lower than the market rent charged if the unit was vacant. Q: I rent an apartment in an old building in Dubai. When I signed the tenancy contract, a clause said that the landlord is in charge of property maintenance. I have been facing a few maintenance issues in my unit. When a technician comes to resolve the problem, he insists that I pay him and says the landlord does not. How is this fair? When I called the landlord’s property management company, I was told that I’d have to foot the bill for maintenance issues below Dh500 ($136), while he would pay for those above. There is no such clause mentioned in the tenancy contract. Since it is an old building, I am sure there will be frequent maintenance issues and am afraid I will be tasked with paying for them. The landlord refuses to pay, but I want to keep the property in good condition since my family lives in it. What is the way forward? I just signed the lease, so have many more months to go before I can terminate the contract. Please advise. AM, Dubai A: In general terms, maintenance of a rented property is the responsibility of the landlord, but to break this down, I can confirm that the normal practice is that any amount below Dh500 is normally paid by the tenant and above this is the responsibility of the landlord. If, however, there is no such clause in your tenancy agreement, the default answer is that the landlord is responsible for maintaining the property in exchange for the rent. Given the property is in an old building, you are right that there could be frequent episodes of continuing maintenance, so my advice to you would be to organise a meeting with the landlord in order to explain your position and to come to some sort of an agreement. Perhaps a reduction in the rent could help if you continue to have to pay for maintenance issues that are the responsibility of the landlord. If the owner continues to not co-operate, you would have no alternative but to file a case at the Rental Dispute Settlement Committee, who will inform the landlord of his responsibilities. Mario Volpi is head of brokerage at Novvi Properties and has worked in the property sector for 40 years in London and Dubai. The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario@novviproperties.com