Dubai has several renting possibilities. The Dubai Land Department (DLD) has launched a number of measures to regulate rental procedures and transactions in the Emirate. The Rera Rental Index and Lease worth Certificate, for example, assist both landlords and tenants in determining the rental worth of their property.
Both aspects play separate but critical roles in the real estate scene, offering useful insights into the rental market. To obtain a thorough understanding of both and distinguish their differences, we’ve compiled a list of distinctions between the two.
KEY DIFFERENCES BETWEEN RERA RENTAL INDEX AND PROPERTY LEASE VALUATION CERTIFICATE
Whether you are a property owner, tenant, or investor, making correct and educated decisions is important. A property lease valuation certificate, for example, will reveal the true rental value of your home in the real estate market if you buy a house in Dubai and wish to rent it out.
If you rent a property in Dubai, however, you may use the RERA rental calculator to get the average annual rental index. Furthermore, a lease value certificate is mostly useful for landlords, homeowners, and investors, but a rental index may be utilized by both tenants and landlords.
To discover more about these qualities, let’s compare the Rera Rental Index and the Property Lease Valuation Certificate.
RERA RENTAL INDEX
The RERA rental index is an online tool that can assist tenants in understanding their rent. It includes the most recent information on allowable rent increases as well as real-time rental statistics for each area. The information is matched to the unit type, whether it’s a one-bedroom apartment, a studio, or a villa.
WORKING
The RERA rent calculator determines the market rent for the tenant’s desired property unit. Furthermore, if the tenant’s lease is about to expire, they can utilize the RERA rent calculator to estimate the projected rate rise. This rise is due to the following factors:
- Type of property (apartment, villa, townhouse, etc.)
- Count of bedrooms
- Area
FEATURES
The RERA rent calculator performs the following basic functions:
- Limits on Rent Increases: It assists landlords and tenants in determining the maximum permitted rent increase for a property based on parameters such as property type, location, number of rooms, and current rent.
- Eligibility Check: Users can determine whether their property is eligible for a rent increase. Landlords are not permitted to raise rents if the existing rate is already within 10% of the assessed market value.
- Rent Comparison: The calculator compares a property’s rent to similar properties in the same area using RERA’s rental index data. This tool assists customers in determining whether their current rent is fair and reasonable in comparison to market norms.
FEES
The fees are a significant disparity between the DLD rent valuation and the RERA index. The RERA rent calculator is a free service with no fees for use. This service is provided free of charge to all landlords and tenants in Dubai.
CERTIFICATE OF PROPERTY LEASE VALUATION
A property lease valuation certificate is an official document issued by the DLD that certifies a property’s assessed market rental value.
REQUIREMENTS
Homeowners and tenants in Dubai can get a property lease value certificate using the Dubai Rest app or Ejari. Those who wish to apply through Ejari must provide property pictures as well as Dubai municipality drawings.
When applying using the Dubai Rest app, however, the following papers are necessary.
- Property images
- Drawings by the Dubai Municipality
- Power of attorney is essential in the case of legal counsel.
- Heirs must provide the following documents to their legal representatives:
- Applicants have received a letter of authorization from the court.
- All heirs must have copies of their Emirate ID and passports.
Tenants seeking must provide the tenancy contract number in order to get the Ejari registration certificate information.
PROCESS
When getting a property lease valuation certificate using DLD’s website or the Dubai Rest app, please follow the procedures below:
- To determine the rental value of a property, select the property type.
- As required, provide detailed property information.
- Submit all required paperwork.
- Accept the terms and conditions of service.
- Make a request for the lease value certificate.
- After the property lease value request has been approved, make the needed payment.
FEES
Applicants who want a property rental value certificate must pay certain fees. The pricing structure comprises a 2,000 AED per unit charge, with a maximum ceiling of 10,000 AED. In addition, there is an AED 10 knowledge and innovation charge. The costs can be paid with a credit/debit card or using the Noqodi system.
COMPARISON OF THE RERA RENTAL INDEX AND THE PROPERTY LEASE VALUATION CERTIFICATE: WHICH COMES FIRST?
The priority of the RERA Rental Index and the Property Lease Valuation Certificate changes depending on the needs. The RERA Rental Index makes it easier for tenants to identify rental properties that fit their budget. The Property Lease Valuation Certificate, on the other hand, provides a thorough certified estimate of a property’s market rent.
The decision between the two is based on whether the user is looking for market reference data (RERA Rental Index) or an official value of a specific property (Property Lease value Certificate).
FAQS
WHAT IS THE RERA RENTAL INDEX’S PURPOSE?
The RERA rental index was created to provide a standardized reference point for rental prices in Dubai, as well as significant market information for landlords and tenants.
WHAT DOES A PROPERTY VALUATION LEASE CERTIFICATE MEAN?
A property value lease certificate is required for evaluating reasonable rental rates and serves as an official reference for landlords and tenants.
This brings the comparison of the Rera Rental Index and the Property Lease Valuation Certificate to an end. Both of these DLD functionalities make rental transactions easier for tenants and landlords. However, if you are looking to rent an apartment in Dubai, you may use these tools to help you.
