Real estate in the UAE: Does the Rera rental index apply to furnished apartments?

Q:We are renting a new furnished apartment in Dubai. Most tenants are approaching the end of their first annual contract and have been informed about a rent increase of 10-15 percent. However, the Real Estate Regulatory Agency's calculator for this area shows that a rent increase is not allowed. The developer claims that since the apartments are furnished, the Rent Index does not apply. But the apartments are regular units with standard lease agreements, Ejari, and a deposit. Is this interpretation of the rental legislation correct, or do we have the right to refuse the rent increase? T.B., Dubai

A:Indeed, the Riera rental calculator does not take into account whether the unit is furnished or unfurnished. However, what the owner says is incorrect. Therefore, to try to find common ground, I recommend that the owner use the rental assessment services of the Dubai Land Department. This will help eliminate the discrepancy in rent, regardless of what the calculator says. After the assessment, Decree 43 of 2013 will come into effect, which will determine the actual amount the owner can request at the next renewal. It is important to note that the amount cannot exceed 20 percent per year. However, if after all these measures you still disagree with the increase, you have the right to contest it through the Rental Dispute Settlement Committee and allow the presiding judge to resolve the disagreements. This will cost you 3.5 percent of the current rent. If you win the case, the costs are often added to the claim.

Q:I own studio apartments in Dubai. I understand that the service charge we pay also includes building and unit insurance. Do owners still need to arrange separate building insurance for their apartments?

A:If building insurance is included in the service fee and you have written confirmation of this, then you do not need additional building insurance. Check the policy for what is covered under its terms. If it is not as comprehensive as you would like, you can discuss this with the management company or the homeowners' association to resolve the situation.

Q:We have been living in a compound in Dubai for 12 years. Our neighbor moved in almost two years ago. Although there were no problems in the first year, he annexed the entire part of the common property for his personal use. The common property consists of the shared land adjacent to our open terraces. The management decided to divide this area in such a way that this person still has the right to personal use, while our part remains common property. We endured months of harassment when the tenant shook our gate, the light from his lamps blinded us through the windows of our living room until 1 AM, and his furniture and barbecue piled up in front of our house. We called the police and even had to install a tall fence.

In December 2023, the tenant said he wanted to install a 1-meter high fence. The management refused and asked him to stick to his boundary. The tenant refused to accept this and repeatedly asked the management to allocate him more space. I wrote to the Dubai Land Department last week and received an unsigned response advising me to consult a lawyer.

A:Your only option is to sue your neighbor, especially if the management company has not intervened and the police cannot handle it because it's a case of nuisance rather than a legal violation. I advise you to consult a lawyer and file a civil case. You clearly have enough evidence to hopefully receive compensation or satisfaction for this prolonged stress. I'm surprised that the management company cannot treat tenants fairly given all the circumstances.