Is your Dubai tenancy contract due for renewal?
There is no shortage of rental options in Dubai, from cosy studio apartments to massive multi-bedroom villas. So when it's time to renew your lease, it's a big decision on whether to stay put or find somewhere new. One big factor may be the rent increase that your landlord is demanding when the tenancy renews.
It's important to determine whether the rent increase that your landlord demands is in line with what the Dubai Land Department (DLD) allows. The best way to check this is through DLD’s rental calculator. This handy online tool tells you what the current market rate is for similar rentals, and exactly how much the landlord is permitted to increase the rent. This means that should the landlord demand a large rent increase, you have data from the DLD to show why this may not be allowed.
But that’s not all. Here are seven things you need to know as a tenant looking to renew their lease in Dubai.
7 must-knows for Dubai tenants looking to renew
1. 90-day notice
RERA requires landlords to provide notice 90 days’ prior to the end of the tenancy agreement if they want to increase the rent. If the landlord fails to provide any electronic or written communication at least 90 days before the end of the tenancy then the contract will automatically renew at the same rental price and according to the same terms and conditions as the previous year. So unless your landlord gives you proper notice, there will be no rent increase. Plain and simple.
2. 12-month notice
In the event that your landlord intends to sell the property you are renting, or if your landlord intends to use the property for personal reasons (or for the use of a first-degree relative), they must give you 12-months notice. The notice must be in writing and sent by registered mail or notary public before the eviction date.
3. Registered contracts
When renting a property in Dubai, it is essential that you obtain an Ejari certificate by registering your tenancy contract. This prevents any possibility of the property being rented out more than once at the same time. Additionally, in case disputes or other issues arise, the DLD’s Rental Dispute Settlement Centre will not intervene unless your contract is not registered with Ejari.
4. Rent payment
Most of Dubai's rental properties have fixed-term lease agreements. This means that for a set period of time, the landlord and tenant agree to the terms and conditions specified in the tenancy contract, which includes the mode and frequency of rental payments. The most common form of payment is via post-dated cheques, where the annual rent is split into two, four or six instalments. However, as of January 2023, the DLD announced that tenants can now automatically pay rent through the Noqodi Ejari Direct Debit Service (DDS).
5. Rent hike disputes
Any rent increases proposed by the landlord must be in line with the RERA rental index. Whenever there is a disagreement over a rent increase, either party may refer the issue to the Rental Dispute Settlement Center. There is a streamlined process in place for resolving disputes, which usually takes a few weeks to complete.
For more information about whether your landlord can increase your rent, and by how much, see our guide: ‘Can my landlord increase my rent in Dubai in 2023’.
6. Bills and utilities
As a tenant, you are of course only responsible for paying utilities, such as electricity, water, and cooling, for the duration of your tenancy agreement. Once your contract is finished, you should notify the utility companies and provide your landlord and/or agent with a copy of your final bills.
7. Documentation
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.
You can find more information about your rights as a tenant in Dubai by reading our blog: know your rights as a tenant in Dubai.
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