Q: The Dubai Land Department (DLD) introduced the rental star rating system earlier this year. If a building has not yet received a rating, can a landlord still increase the rent—especially if the DLD’s rent index does not support a hike? – AT, Dubai
A: The DLD’s rental star rating is being rolled out gradually and may not yet cover all residential buildings. While the system is updated regularly, completing ratings for every building in Dubai is a large-scale task.
Currently, only landlords can view the rating of their property, though discussions are underway to make this data visible to tenants. If a building remains unrated, it is temporarily treated as “unclassified,” meaning the older rent cap regulations still apply. In such cases, landlords cannot simply raise rents at will. Any increase must still align with the DLD rent index, and tenants have the right to dispute unjustified hikes through the Rental Dispute Settlement Committee (RDSC).
Landlords are required to give tenants at least 90 days’ notice before renewal if they intend to raise the rent. However, increases can only be approved if the current rent is substantially below the index value.
Follow-up Question: My landlord evicted me, claiming the property was being sold. Instead, it was gifted to a first-degree relative and re-let at market rent. Do I have any recourse? – YB, Dubai
Answer: Under Dubai tenancy law, evictions are allowed for reasons such as property sale, landlord or first-degree relative occupancy, major renovations, or demolition. If your eviction was justified on the grounds of sale, but the property was merely gifted and then rented out, this may be considered a “bad faith” eviction.
The RDSC examines the intent behind each case. If a landlord removes a tenant under false pretenses and then re-lets for profit, compensation may be awarded to the former tenant. This compensation could equal the difference in rent paid elsewhere or up to the value of a full year’s rent. Additionally, the landlord may face restrictions on raising rent for that property in the future.
In short, gifting to a relative does not qualify as a sale, and re-letting after eviction can be grounds for legal action. Tenants in this situation are within their rights to file a case with the RDSC.
