If the current annual rent is less than 10% of the average market price, then there is no increase applicable.
If the current annual rent is 11% to 20% below the average market price, then the maximum rental increase is 5%.
If the current annual rent is 21% to 30% below the average market price, then the maximum rent increase 10%.
If the annual rent on the property is 31% to 40% below the the average market price, then the maximum rent increase is 15%.
If the annual rent on the property is more than 40% below the the average market price, then the maximum rent increase is 20%.
This is a valid case e.g., The value of the apartmetns in Volane Tower in Busienss Bay is never close to the property value in Ontario Tower in Business Bay. This index gives the same weight to both towers.
In that case, the landloard can ask for an evaluation from DLD that is going to overide what this Index says.
When the property is eligible for a rental increase, the landlord must give the tenant a notarized written notice 90 days prior to the contract renewal. It can be handed personally to the tenant, left at door, or sent via a registered mail.
If the landlord fails to give a this written notice before the assigned 90 days, then the tenant is not obligated to accept the rental increase.
1.The View of the Property.
2.The Floor Level of the Property.
3.The Age of the Building/Community.
4.The Finishing of the Property.
5.Whether the Property is Furnished or Not.
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