Understanding UAE Property: Rera Rent Index for Furnished Apartments

Post by : Elena Malik

**Question on Rental Increase:**

TB from Dubai is facing a rental increase for their furnished apartment despite the area being covered by the Real Estate Regulatory Agency (Rera) rent index, which states that no rental increase is permitted. The landlord claims that because the units are furnished, the Rera index does not apply. However, TB highlights that the units are regular apartments with standard lease contracts, Ejari, and deposit. Seeking clarification on their rights, TB queries if this interpretation of rental laws is correct.

**Answer:**

The assertion made by the landlord regarding the applicability of the Rera rental calculator based on furnishings is incorrect. While it's true that the Rera calculator does not differentiate between furnished and unfurnished units, this does not exempt the landlord from adhering to the rental laws.

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To resolve the discrepancy, TB is advised to suggest that the landlord utilize the Dubai Land Department rental valuation service. This will help address the rental disparity despite the Rera calculator's output. Subsequently, Decree 43 of 2013 will determine the permissible rental increase, capped at 20% annually.

If TB remains unsatisfied with the increase after following these steps, they have the right to contest it through the Rent Dispute Settlement Committee, where a presiding judge will settle the dispute. However, this process incurs a cost of 3.5% of the current rental amount, which may be reimbursed if the judgment favors TB.

**Question on Building Insurance:**

AP in Dubai seeks clarification on whether separate building insurance is necessary for studio apartments owned by them, considering that service fees cover building and unit insurance. They inquire about the need for additional building insurance.

**Answer:**

If AP's service charges include building insurance with written proof of coverage, additional building insurance may not be necessary. However, AP should review the policy to ensure it meets their requirements. If the coverage is insufficient, they can discuss the matter with the managing company or owner's association to address any gaps in coverage.

**Neighbor Dispute:**

CK from Dubai shares a distressing situation involving a neighbor who encroached on common property, causing disruptions and harassment. Despite efforts to resolve the issue with the management and authorities, CK seeks guidance on legal recourse to regain peaceful enjoyment of their property.

**Answer:**

Given the ongoing disturbance and lack of intervention from the management, CK's best course of action would be to pursue legal recourse through civil litigation against the neighbor. Consulting a lawyer and filing a civil case can potentially lead to compensation or resolution of the matter. Despite the distressing situation, CK is advised to seek legal assistance to address the issue effectively.

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