The 25% Increase and the Three-Month Eviction
A two-bedroom flat in Al Barsha is let under a contract running from 1 September 2024 to 31 August 2025 at AED 68,000 a year, paid in four cheques, with a 5% security deposit. RERA's index shows the average for comparable units at AED 80,000. On 20 May 2025 the landlord emails the tenant: rent will rise to AED 85,000 from 1 September, and 'because I am selling, please vacate by 31 August 2025'. The tenant has lived there three years, has never missed a payment, and wants to stay. The landlord asks his broker to advertise the unit as 'vacant possession available' and to find a buyer at AED 1.15 million.
1. Is the proposed rent increase to AED 85,000 enforceable? Calculate the maximum lawful rent.
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The proposed AED 85,000 is not lawful. Under Dubai tenancy law, an increase requires at least 90 days' written notice before renewal and must fall within the RERA index bands. The notice on 20 May for a 1 September renewal is 103 days, so timing is acceptable, but the amount is not. Current rent of AED 68,000 against an index average of AED 80,000 is 15% below average, which falls in the 11–20% band. The maximum permitted increase is 5%, i.e. AED 3,400, taking rent to AED 71,400. AED 85,000 is a 25% increase and is therefore invalid. The tenant may pay the lawful increase or remain on the existing rent and challenge any demand; a landlord cannot enforce an invalid increase by refusing cheques or cutting services.
2. Can the landlord obtain vacant possession on 31 August 2025 on the ground that he is selling?
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No. Eviction for sale is a statutory ground, but it requires 12 months' notice served through the notary public or by registered mail, and it cannot take effect before the end of the lease term. An email sent on 20 May 2025 cannot produce vacant possession on 31 August 2025. If the landlord serves proper notice now, the earliest lawful date is 31 August 2026, assuming the notice is valid and the sale is genuine. The tenant should keep paying rent and keep evidence of payment; if pressure is applied, the tenant can complain to RERA and the Rental Dispute Centre. The landlord also cannot list or advertise the unit as vacant, because that misrepresents the legal position to buyers.
3. How should the broker respond to the landlord's instruction to advertise 'vacant possession available'?
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The broker should refuse to market the property as 'vacant possession available'. Advertising a tenancy position that is legally wrong is misleading and exposes the broker to RERA discipline and a possible claim from the buyer. The correct advice is: (a) serve a proper 12-month notarised or registered notice if sale is intended; (b) apply only the lawful 5% increase with correct notice; (c) market the unit as tenanted, with the lease and rent figure disclosed; (d) expect the buyer to price in the tenant and the 2026 vacancy date. The broker should also document the landlord's instructions in writing. A buyer who later discovers the tenant cannot be removed may claim against both seller and broker, so accurate marketing protects everyone.