How to increase rent of studio apartment as per current market

[Kind]

I rented out my studio apartment for only 38,000 Per annum one cheque. Contract was for one year. As per agent, I can not remove tenant at the end of tenancy agreement if tenant wants to stay for another year and can not increase the rent Unless I prove that I want to live by myself. For that I will have to give some sort of guarantee to Dubai Municipal Corp. showing my real intention.

After two years I can increase the rent as per prevailing market but some say you can increase only 5% per annum after two years ?

Does anyone have similar experience ? I am not greedy to increase the rent but just like to know the rule.

 

[Demoniise]

I too would like to know.

 

[Capricorn 1]

I have a one bed apartment rented out for AED 41,500, contract for 2 years (paid in 3 cheques) to expire next March. Is this the going rate? I too would like to know if rents can be increased?

 

[Kind]

Rent of Studio apartment in international city is between 50,000-60,000 AED
One bed should be 80,000 AED at least.

 

[Howsbuya]

Rental

I have a one bed apartment rented out for AED 41,500, contract for 2 years (paid in 3 cheques) to expire next March. Is this the going rate? I too would like to know if rents can be increased?

Hi Capricorn
The rent situation is as stated - no increase for the 2nd year and then 5% the 3rd year. You have to prove yr moving in yrself to get the tenants out.
The going rate for a 1 bed apartment now is 75,000 Dirhams per year.
Hope this helps.
HB

 

[Kind]

Howsbuya

Thanks for your input.
It means those who rented out cheap are stuck for forever ?

 

[nabeelc]

Howsbuya

Thanks for your input.
It means those who rented out cheap are stuck for forever ?

yes u r stuck forever. now stop being greedy. it is because of landlords like yourself that the rents have skyrocketed. STOP THE GREED!

 

[anwar khan]

yes u r stuck forever. now stop being greedy. it is because of landlords like yourself that the rents have skyrocketed. STOP THE GREED!

Nabeelc I am not being nasty or anything but it never depends on landlords to put the prices up for their properties , its the market in dubai . Everything is going up n up and its the growing rental value in dubai which determines the rental value of Intl City. Its not that landlords are asking for any rent and they are getting it, it all depends on the market to be honest.....Greedness is everywhere whether you are a buyer or seller, tenant or landlord, thts how it works my friend...
Regards

 

[georgihh]

yes u r stuck forever. now stop being greedy. it is because of landlords like yourself that the rents have skyrocketed. STOP THE GREED!

This website is not for idiots trying to be smart but for investors who wants to invest and increase the initial capital of the investments as much as possible.
Yes IC is the last place where you can get a dissent rent in Dubai but if you cant afford it go home or do something else. Once more people invest money in Dubai and they want return and the government supports them

 

[georgihh]

1. More than two people per studio and three per one bedroom are allowed to stay in IC.
2. Tell your tenants you are selling the flat and they have to vacate it as per the wish of the new owner
3. Tell your tenants you are going to stay in the flat

If none of the above helps you increase the rent gently until you find the way to get the market value

 

[Capricorn 1]

Hi Capricorn
The rent situation is as stated - no increase for the 2nd year and then 5% the 3rd year. You have to prove yr moving in yrself to get the tenants out.
The going rate for a 1 bed apartment now is 75,000 Dirhams per year.
Hope this helps.
HB

What is the position regarding the 4th year? If I am obliged to let tenants stay on for 3rd year for 5% increase - I don't want to sign a 2 year contract if there is a possibility of increasing rent in year 4.

 

[sameer.dada]

Maybe you could say that you are selling the unit. So they have to vacate it when their 365 days is up.

Rent in Dubai is really becoming ridiculous. Almost like New York rates.

 

[Kind]

Dear georgihh

Thank you so much for your input and advice. I was so ashamed after reading nabeelc message that I stopped reading the forum for a while.
You are right it was purely for investment purpose and I think everyone would like to get max. return from his investment.

 

[SAH]

The way to increase your rent

Dear Guys,

I own an apartment there but my friend requested an apartment in international city i call real estate people they says 55,000 AED studio i said why n how my apartment 38,000 you rented out and now my freinds needs an apartment u r saying 55000 amazing!!!

Then i put pressure on real estate people do something!!!

My real estate peoples perform good after my pressure
now we have to pay 15,000 to the tanent so he can go to different aparment
15000+38000=53000 AED

My apartment is empty now i can have new tanent with new rent
and terms & conditions with (2 cheques not 3 like before)

I dont ' no this deal was OK or not but my apartment will have 55,000 2 cheques and for next 1 YEAR ONLY

 

[Kind]

Dear Sah,

That's a wonderful idea. I will try to work on it by paying some to tenant at the end of my one year contract.

Rgds.

 

[sameer.dada]

WHich unit do you won?

And how much did you buy it for?

 

[anwar khan]

I have a got a 1 bed unit in Italian cluster with balcony and I m getting 56k in 3 cheques.. I think I will have to try out something to get atleast 70k ...

Regards,

 

[passi0nate]

Just for Info .. Rent now is 58000 for 2 Chqs ..

I can help to rent it out at this rate .. can send me the details by pm ..

 

[anwar khan]

Just for Info .. Rent now is 58000 for 2 Chqs ..

I can help to rent it out at this rate .. can send me the details by pm ..

Everybody is getting 65k to 75k for 1 bed and you are saying that rent now is 58k !!! didnt get that at all ...Could you plzz explain a little bit more what you were trying to say....

 

[dalvir bains]

Hi anwar,
I think passi0nate wants to rent a balconie in one of your 1 bedroom apartments,