Quote:
Originally Posted by matlee
Hi,
I am very new to Dubai and in amidst of signing tenance contract for leasing and rental apartment in Bur Dubai.
One of the additional clause mentions " The tenancy lease will be renewed at prevailing market price at the date of renewal as agreed subject to variation"
Agency states that this market price & variation and is pertaining to rental laws where the annual rental increment is limited to 5% after two years of lease and is quite standard.
Please advice if this should be a cause of concern. Your comments are appreciated a lot!!
Thanks
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Hi,
Below is a reply from my agent in Dubai who is looking after my 1 bedroom apartment in International City, Dubai. Hope this heps.
Salim
The current tenancy contract is for a one year period, 10th September 2007 - 9th September 2008. The rental amount at the beginning of this tenancy was AED 45,000. As long as the current tenant is wishing to renew at the end of this tenancy period, the rent will remain the same according to the UAE government regulations. Landlords cannot increase the rental amount until the 2nd tenancy renewal and this is capped at 5%. If the tenant does not wish to renew, then the landlord is able to increase the rent accordingly. At the moment, a 1 bed in International City is going for around AED 54K.