All You Need To Know About RERA Calculator Index
The RERA calculator index is a tool that allows you to check whether a rent increase is viable or not. Furthermore, it is useful for you, whether you are an owner or a tenant of a living space in the UAE. Equally, when you use it, you will have useful and valid results throughout the year.
In this article, we will delve deeper into what calculators are and all the benefits they can provide you. Also, you will learn how you can use this tool to calculate rent in general.
What is the RERA Rent Increase Calculator?
The RERA or Real Estate Regulatory Agency is the entity in charge of regulating the laws of the Dubai real estate market. Likewise, it is the one who regulates rental contracts between owner and tenant, to create a relationship that benefits both. Similarly, this authority is the one that updates the rental costs for residences, industries, businesses, or housing for employees.
Thus, if you want to rent a place in Dubai, you can see the average annual rent index on the RERA rental index calculator. In the same way, with this instrument, you will pay the fair amount suggested by RERA in 2023. However, you must know exactly how it works so that you can use it effectively when calculating your rent.
Importance of RERA calculator index
RERA rent index calculator is a system to limit rent increases and stop illegal rent increases. Also, it works with the RERA rental index that the authorities update every year. Hence, you can use the calculator for all properties all year round.
Likewise, you will notice the importance, because when you upload your details about the property, you will be able to know if an increase is feasible or not. Therefore, you will be able to see if the tenant is complying with the law when you notify you of a rent increase. Also, if you are the owner of the space, you will know if the increase applies.
Requirements requested by Rera Rental Index Calculator
The RERA calculator index will ask you for a series of details for the calculations. below you can see what data you will need to have on hand:
- Kind of property. In this case, it can be commercial, residential, industrial, or staff accommodation.
- The expiration date of your lease
- Principal space of the property or Deira, Bur Dubai i.e. another place in Dubai or if it is a freehold possession
- Specific details, i.e. whether it is an apartment or villa
- Where it is located, if it is a community or sub-community
- Number of rooms
- How much do you currently pay in annual rent?
However, the RERA calculator index does not take into account other important details, such as those you will see below:
- Facilities available
- Age of building/unit
- Building status
- Ground level
Additionally, the calculator will compare the average prices in the area where you live, comparing them to similar properties.
How will the rental rate increase?
You should know which RERA calculator index will be achieved annually with a graded structure. Next, we will show you some examples of this structural approach:
- When a rent is currently less than 10% of the market rate, no rent increase will apply.
- For an annual rent between 11% and 20% less than the RERA market price, the increase that may be applied will be 5%.
- With a rent between 21% and 30% less than the calculated RERA market amount, it can increase a maximum of 10%.
- If the annual rent exceeds 31% or 40% below the RERA calculation price, the increase that may be applied will be 15%.
- If it exceeds 40% less than the value calculated by RERA, a 20% increase could be applied.
Why RERA Rent Increase Calculator is used?
The RERA Index Calculator Dubai is part of the ruler of this emirate’s effort to stop rent increases. Likewise, the first step towards this was in 2013 with a decree that limited rent increases as well as illegal increases in the Emirates.
Additionally, last year a new law was applied where landlords had to be careful about charging their tenants. Otherwise, they would have to face sanctions imposed by local authorities for excesses on the part of the parties involved.
Hence, this is not just between the tenant and the landlord, but with buyers and sellers alike. Consequently, the RERA calculator index allows tenants and landlords to have an agreement that complies with the current Dubai laws.
Likewise, as the owner you will have to consult the tool in advance when you are going to renew or make a significant change. Similarly, if you are a tenant, you can use it if at any time the tenant announces a rent increase.
Ways to use the RERA Rental Index calculator
You can use the RERA index calculator when you want to rent a big villa or a small apartment. Similarly, you will not have complications to use it, since you have few steps to follow in the REST application. In addition, you will be able to compare the prices of your property with those of others with the same characteristics.
However, you will need to know the next step to start using the RERA index calculator online:
1. Have the information we suggested above at hand.
- Go to the REST app (Dubai Real Estate Self Transaction) or the official site of the Dubai Land Department.
- Login and log in
- Select where it says QUERY ABOUT THE RENTAL INDEX
- Enter the requested information such as certificate number, property type, contract end date, and year of certificate. You must also pay the annual rental payment.
- Finally, you select, calculate and you will get the result you need.
As a result, once all the steps are done, you will see the index of the calculator on the screen, along with the average in the area. In the same way, the type of property and whether a rent increase is considerable or not.
Main Responsibilities of RERA
You must know that the RERA has the specific responsibilities that you can see below:
- Licenses for Dubai real estate agencies
- Rules for real estate developer beneficiary accounts
- Regulation and registration of rental contracts.
- Inspection of responsible of the associations of owners for some buildings in Dubai.
- Publication of studies for the real estate sector.
- Supervision of real estate advertisements by the media.
- Authorization of licenses for real estate exhibitions to boost national participation in the Emirates real estate sector.
- Inform citizens regarding the regulations for the purchase or rental of real estate.
RERA forms
RERA has introduced some forms that help make transactions very transparent between the parties. Below you will learn what these forms are and what they are used for:
- Form A. Is for the agreement involving the seller and the selling agent.
- Form B. Used for the agreement between an agent and the property buyer.
- RERA form F. It is useful for an agreement between a buyer and the seller of a property.
How to get a RERA certificate
Below you will see how you can request a RERA calculator index certificate:
- Enter the online portal of the Dubai Land Department
- Create an account in the Trakheesi system
- Enter your details and the required documents
- Show RERA License Application in Dubai
- You will then need to make the payment through the payment option you wish to use.
- Finally, you will get a notification of your registration.
Is It Rental Increase Allowed?
After consulting the RERA index calculator Dubai, you will know if the application of the rent increase is viable. Then, you must notify in writing and notarize it 90 days in advance before renewing the contract. Likewise, we suggest you deliver it to it in person, if you cannot, leave it at the entrance or send it by mail.
If the tenant does not provide notice as specified above, the tenant will not be able to demand payment based on the rent increase.
What To Do For Illegal Rental Increase?
Despite there being a RERA rent index calculator, some landlords increase the rent indiscriminately. In addition, they violate the law because they exceed the legal amount of rent payment. In this case, the rent calculator will indicate whether the increase is excessive or not legal.
However, if you still want to increase the rent, you will need to talk to the tenant first and use the RERA calculator index as a backup. However, if the conversation between both parties does not work, the tenant can go to the Rental Dispute Center. In this body, the matter will be carefully studied.
Other Reasons for Using the RERA Index Calculator
In addition to rentals, the RERA calculator has other benefits at your disposal applicable if you have a real estate business. Next, you will learn what they are:
Contributes to negotiations and agreements
When you work with buying and selling properties, getting a good deal is important. For this reason, whether you are a professional or a beginner, you should know what tools to use. Additionally, it will be helpful if you are a real estate agent to be successful in your negotiations.
Thus, the RERA index calculator online will be an important tool when you think about doing negotiations. Hence, with this calculator, you will be able to know the price of properties throughout the emirate. In addition, it will tell you the exact information about possible rentals.
With the knowledge that the tool gives us, we can mediate a better agreement with the owner of the property. Likewise, if the cost of the property exceeds what is established by law, the RERA calculator will tell you so. With this, it will be possible to structure agreements that benefit both parties in the negotiation.
Fiscal and financial efficiency
With the RERA calculator index, you will know the monetary value of the property you are renting, this way, you will be able to know if the tenant is asking for a rental price higher than that prescribed by RERA. Equally, through this tool, you will have the opportunity to organize yourself better financially.
Good planning based on calculations and your salary will save you from going through negative situations. Therefore, you must know that your salary in the Emirates will be enough to cover the rental costs. Likewise, the calculator will improve your tax efficiency.
The RERA calculator and resources for data analysis
If you want to enter the real estate market with an investment, you must know what the market is like. Also, if it is about properties of interest to you or a possible return on the investment you made. Hence, to keep this data handy, analyzing the data using the RERA calculator will be helpful.
Below, we give you some tips that you can put into practice when using the RERA calculator:
Use data to understand real estate market trends
The RERA calculator will allow you to see the current trend of the real estate market in the Emirates. For example, which properties are in greatest demand, and which areas are most popular, among others. Furthermore, with the information of this data, you will be able to choose the best option when you want to invest in any of them.
Use the RERA calculator to know property types
When you use the data provided by the calculators, you will guarantee the best rental investment most sought after by tenants. Consequently, your investment will be able to achieve the economic development you seek with it.
You will be able to predict how much to charge for rent
With the index that the calculator will give you, you will be able to know in advance how much you can charge for the property in which you want to invest. Therefore, you can have amounts for each property and thus choose the one that gives you the most income.
Conclusion
The RERA calculator index is the means used to determine whether or not a rent will increase. Likewise, it will be useful to rate any space compared to another equal space, so its calculation will be effective. Furthermore, the tool is easy to use and is at your fingertips with just a click.
The tool will keep you up to date with the legal provisions of rentals through its periodic updates. However, if you want more information, contact us.
