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Can anyone clarify:

A friend told me that as my rental contract was started in Sept 2006 and is due to expire Sept 2007 - my landlord cannot increase the rent for the second year and for the following year he can only increase it by 7% in line with the rental cap?

Is this true?
I know he can easily serve notice at the end of the contract to get someone in who will pay more, but if he chooses to keep me in is it true that he cannot increase the rent for the second year?

yes your friend is right .. since the cap was 15% in 2006 the rent comittee decided not to let landlords who already increased in 06 to increase again in 07.

check this thread for a good way of handling rent increase situations:

http://www.dubaiforums.com/viewtopic.php?t=20728

but he didn't increase the rent in 2006 as it was a new contract and I was the first tenant in the new property.

Does this rule still stand?
Thanks

yes the rule still aplies. you're safe.

Cool!

Cool! Thanks guys.

XPClone wrote:but he didn't increase the rent in 2006 as it was a new contract and I was the first tenant in the new property.

Does this rule still stand?
Thanks

If it was a new contract and there was no increase in 2006, I think the landlord is entitled to add the 7% increase when contract expires in Sept 2007?