8 Things Every Tenant in Dubai Must Know Before Renewing the Tenancy Contract

There’s no denying that a huge number of people are moving to Dubai with the hopes of making it their primary residence. The emirate is grabbing the attention of investors, entrepreneurs, and people belonging to all walks of life. And for their long-term stay, rental properties in Dubai happen to be a viable option. The fact that many people prefer renewing the tenancy contract year after year testifies to this fact.

Speaking about properties here, they are as luxurious as comfortable. Since we’re alluding to Dubai, the place is known for the strictest legalities, the entire leasing procedure gets overwhelming if you neglect to follow them. 

After all, no one would want to move into a new home with multiple obstacles. That’s where the importance of carefully renewing the tenancy contract steps in.

Since every tenancy contract has a deadline, so do the ones in Dubai. Whether you’ve leased a villa, a townhouse or an apartment, there’s a different contract for every property, yet the basics are all the same. Therefore, at some point in time, you will have to renew it.

However, before renewing the tenancy contract, here’s what you need to remember:

What to Know Before Renewing the Tenancy Contract?

• Provision of a 3-month Notice

Either from the landlord’s side or the renter, there must be a provision of 90-days’ notice of non-renewal of the lease contract.

As per RERA Dubai, if the landlord wishes to raise the rent, they must mention it three months before the renewal. However, in the case of verbal and non-verbal communication, the rental contract will reflexively be generated under similar terms as the previous year.  

• One-year Termination Period

If the landlord plans to sell or renovate the property and asks you to leave the property immediately, that won’t be acceptable. It’s because they are obliged under the Tenancy Law to request the eviction of the renter.

While the termination period for leaving is one year, they must inform you a year prior using a registered email or a written contract. You can begin your house hunt as an alternative option upon the notice. This must be well-cleared between both parties before renewing the tenancy contract. 

• Rules for Rent Appraisal

During the process of renewing the tenancy contract, remember that your landlord isn’t allowed to raise the rent as per their will. They can only be raised by the RERA calculation. As mentioned earlier, the landlord must deliver the increment three months before the contract renewal. 

The RERA has already determined a rental amount for each community, so your landlord can raise it according to the RERA rate if your rent is less than the settled amount. Yet, the amount is usually paid in the form of post-dated cheques. 

However, as a tenant, you can negotiate the rent. Do some research from your end to find out competitive rates in your area. 

• Renovation or Regular Maintenance

The landlord can refuse a contract renewal case if the property requires renovation or regular maintenance. Since the tenants accompany the property, most landlords demand compensation for the fixtures. Yet, the landlord has to submit a technical report issued by Dubai Municipality as approval. Adding such factors into the contract avoids getting into undesired conflicts. 

• Regulations for the Rental Payments

Since the rental structure is different for every neighbourhood in Dubai, the tenancy contract is renewed accordingly. Simply put, However, the rent of rental properties in Dubai Marina won’t be the same in Downtown Dubai, even if they are of the same size and come with similar amenities.

However, tenants must make the rental payment 20 days before the expiry of the previous contract. 

As mentioned, rents are usually made through post-dated cheques, where the annual instalments are split through two, four and six. 

• Registration with EJARI

Registering the renewed contract with the EJARI is the landlord’s responsibility. While they usually assign this task to the real estate agent, it ultimately falls down on tenants’ shoulders. Getting your tenancy contract renewed with EJARI is necessary to prevent the mishap of the property being rented out twice or thrice. In addition, in case of any conflict among the parties, the DLD’s Rental Dispute Settlement Centre won’t be intruding if your contract isn’t registered. 

• Organise your Finances

Organising your expenses is one of the most considerable factors when renewing a lease agreement. Since the landlord is allowed to increase the rent, you must determine if you can afford it or not. After all, the annual rent takes a big chunk from your paycheck, so it’s essential to sort out your expenses before the renewal.

Do you want to go light on your budget in the coming months? Prefer moving into a budget-friendly alternative within the same community.

• Negotiating Lease Terms

Settling on the lease terms is another crucial factor you must attend to during the tenancy contract renewal. It could be anything from the parking fees to the allowance of pets. If generally suggested, ask your landlord as the 3-months notice period approaches. 

Ensure that you get on the same page with the landlord regarding the lease terms to avoid unpleasant situations later. It also includes access to shared amenities like fitness centres, swimming pools, Spas and regular maintenance. 

Last Verdict

In all, renewing the tenancy contract is an important process. Thus, you should be very careful in this regard. So, take all these factors into account before signing on the dotted lines, as they will have you make an informed decision.