Tenancy Renewal

Does your Dubai tenancy agreement require renewal?

Dubai offers a wide array of rental options, ranging from cozy studio apartments to expansive multi-bedroom villas. When the time comes to renew your lease, it becomes a significant decision whether to continue residing in the same place or search for a new one. One major factor to consider is the rent increase proposed by your landlord for the lease renewal.

It is crucial to ascertain whether the rent increase requested by your landlord aligns with the regulations set by the Dubai Land Department (DLD). The most effective way to confirm this is by utilizing the DLD's rental calculator, an accessible online tool. This convenient resource provides information on the prevailing market rates for similar rentals and specifies the permissible extent of rent increase allowed by the DLD. Thus, if your landlord demands a substantial rent hike, you can rely on data from the DLD to demonstrate why such an increase may not be permissible.

However, that's not all there is to it. Here are seven essential points that every tenant seeking to renew their lease in Dubai should be aware of.

For Dubai tenants seeking to renew their tenancy, here are 7 essential things to know.

Rent Increase

Landlords must give a 90-day notice before the end of the tenancy agreement if they intend to raise the rent, as mandated by RERA. If the landlord fails to communicate in writing or electronically within the specified timeframe, the contract will automatically renew for another year at the same rental price and under the same terms and conditions as the previous year. Unless your landlord provides proper notice, there will be no increase in rent. It's as straightforward as that.

Notice Period

If your landlord plans to sell the property you're currently renting or intends to utilize it for personal purposes (or for a first-degree relative's use), they are obligated to provide you with a 12-month notice. This notice must be in written form and sent to you via registered mail or through a notary public before the eviction date.

Tenancy Contract

When leasing a property in Dubai, it is crucial to acquire an Ejari certificate by officially registering your tenancy agreement. This ensures that the property cannot be rented out simultaneously to multiple tenants. Moreover, in the event of disputes or other matters, the Rental Dispute Settlement Centre of the DLD (Dubai Land Department) will only intervene if your contract is not registered with Ejari.

Lease Agreements

The majority of rental properties in Dubai operate under fixed-term lease agreements. This means that both the landlord and tenant agree to the terms and conditions outlined in the tenancy contract for a specified period of time, including the method and frequency of rental payments. Typically, post-dated cheques are the preferred payment method, with the annual rent divided into two, four, or six installments. However, starting from January 2023, the DLD has introduced the Noqodi Ejari Direct Debit Service (DDS), enabling tenants to conveniently pay their rent automatically.

Rent Increase Disputes

All rent increases suggested by the landlord must adhere to the RERA rental index. In the event of a disagreement regarding a rent increase, either the landlord or the tenant can bring the matter to the Rental Dispute Settlement Center. A streamlined dispute resolution process is in effect, typically taking a few weeks to reach a resolution.

Maintenance Responsibilities

Your responsibility as a tenant includes paying for utilities such as electricity, water, and cooling during the period specified in your tenancy agreement. Once your contract comes to an end, it is important to inform the utility companies and furnish your landlord and/or agent with copies of your final bills.

Legal Requirements

When your tenancy comes to an end, it's very important to keep a copy of all correspondence, bills and other related documents. You will need these in the event that any disputes are raised with RERA or the Dubai Rental Dispute Centre.

It is highly advisable to retain copies of all correspondence, bills, and relevant documents when your tenancy comes to an end. These records will prove invaluable in case any disputes arise and need to be addressed with RERA or the Dubai Rental Dispute Centre.