Dubai: If your landlord has increased your rent beyond the range permitted in the rental index, you can object to the move by filing an ‘Offer and Deposit’ motion with Dubai Land Department (DLD).
According to DLD, the tenant can deposit the rent as per the previous rental contract through DLD, by filing the ‘offer and deposit’ motion online, if the landlord disagrees to accept it directly. A judge at DLD’s Rental Dispute Settlement Centre (RDSC) will then review the case, and if the decision is handed down in your favour, your rent will be sent by DLD to the landlord.
So, if you disagree with the rent hike implemented by your landlord and he refuses to accept the rent you are paying, here is how you can approach DLD and use the ‘offer and deposit’ service.
The landlord must give a 90-day notice to increase rent
Firstly, any rent hike should be communicated to you from the landlord at least 90 days before the contract is due for renewal, according to Ashraf El Motei, founder of Dubai-based law firm Motei & Associates.
“Article 14 of the Dubai Tenancy Law stipulates that in the event the landlord wishes to amend any of the terms of the lease or increase the rent, he must notify the tenant of his intention to increase the rent at least 90 days prior to the date of the expiration of the lease contract, unless otherwise agreed between the parties,” he said.
What is the ‘Offer and Deposit’ motion?
According to El Motei, ‘Offer and Deposit’ is a legal motion where the tenant can deposit the rent – as determined in the previous rental contract – through post-dated cheques. The number of cheques should also be as per the agreement in the previous rental contract.
“In the event that the landlord and the tenant do not reach agreement with respect to the rent increase, RDSC in Dubai has introduced the ‘Offer & Deposit’ option, whereby the tenant may file a motion before the Judge of Urgent Matters to order the landlord to sign a new lease on same terms of the previous one,” El Motei said.
How to use the ‘Offer and Deposit’ service
1. Check if the increase is permissible
If your landlord has informed you that the rent will be increased at the time of renewal, the first step to follow is to check the rental index by Real Estate Regulatory Agency (RERA) to see if the increase is within the limits allowed by the calculator.
WHAT IS THE RENTAL INDEX?
DLD’s rental index is an online calculator, which allows tenants to check the average rent of the real estate market in a specific area in Dubai, and also provides details of how much a rent may be increased at the time of renewal, based on current market rates. This is the slab system followed for rent increase:
– If current rent is 10 per cent less than the average rent for the same property, rent may not be increased.
– If current rent is 11 to 20 per cent less than the average rent for the same property, the rent may be increased by a maximum of 5 per cent.
– If current rent is 21 to 30 per cent less than the average rent for the same property, the rent may be increased by a maximum of 10 per cent.
– If current rent is 11 to 40 per cent less than the average rent for the same property, the rent may be increased by a maximum of 15 per cent.
– If current rent is lower than the average rent for the same property by 40 per cent or more, the rent may be increased by a maximum of 20 per cent.
2. Notify your landlord through email
If the rent increase is not within the limits allowed in the rental index, you must inform your landlord via email that the increase in rent is against the rental index and state that you are only willing to pay the rent stated in the lease contract.
3. Get your documents in order
Before you begin filing the ‘offer and deposit’ motion, you would need to ensure that you have the documents needed to apply for the service. According to El Motei, these are the documents a tenant will need to file the motion:
•The previous lease
•The new lease offered by the tenant
•The cheques for the new lease along with the property’s keys,
•Relevant correspondences between the parties confirming the landlord’s stand (if any).
4. File the ‘offer and deposit’ motion
“There are two ways to deposit the rent through DLD, it can be done either through a Real Estate Services Trustee or online on the DLD website – dubailand.gov.ae by creating an online account,” Reda Hegazy, senior associate and arbitrator at Alsuwaidi & Company LLC Advocates and Legal Consultants, said.
Through a Real Estate Services Trustee
1. Visit one of the services centres of a Real Estate Services Trustee. You can find trustee centres registered with DLD by visiting this link: https://dubailand.gov.ae/en/eservices/real-estate-service-trustees-centers/properties-trustee/#/
2. Provide the required documents at the trustee office. The trustee will then check and make sure that the documents are compliant with the requirements of the legal motion.
3. The trustee will then file the application on your behalf.
4. You will then need to make the payment for the service fee. Make sure you receive the receipt of the payment.
5. The motion has now been filed with DLD. Next, once the RDC judge has reviewed the case, the cheque will be either be deposited to the landlord or returned to you, depending on the judge’s final decision.
Applying online individually.
If you opt to apply for the motion yourself, here are the steps you should follow:
1. Visit the link: https://dubailand.gov.ae/en/eservices/offer-and-deposit/#/ and sign up for an account with the DLD website. You can either create an online account by registering your contact details and Emirates ID number or sign in via your UAE Pass.
2. You will be redirected to the Rental Dispute Settlement Centre’s platform. It will then show you a list of services that you can apply for, including the ‘offer and deposit’ service. Select the service.
3. You will then be asked to upload the required documents.
4. You will then need to make the payment for the service fee.
5. The motion has now been filed with DLD. Next, once the RDC judge has reviewed the case, the cheque will be either be deposited to the landlord or returned to you, depending on the judge’s final decision.
Cost
Online service:
• Dh50: Offer and Deposit Fee
• Dh52.50: Fast Track Notification
• Dh10: Knowledge fee
• Dh10: Innovation fee
Total: Dh122.50
In case you apply through Real Estate Services Trustees Centres, the fees will be Dh130.
