Things to consider during tenancy contract renewal in Dubai

In Dubai, there is no shortage of rental options, ranging from cosy studio flats to sprawling multi-bedroom estates. So, when it comes time to renew your lease, the option to stay or go is a major one. A major influence might be the rent increase that your landlord demands when the tenancy is renewed.

It is critical to find out if the rent increase proposed by your landlord has been approved by the Dubai Land Department (DLD). The fastest way to find out is to use DLD’s rental calculator. This useful online tool shows you the current market pricing for like leasing, and even how much the landlord is allowed to raise the rent.This implies that if the landlord demands an important rent rise, you will have evidence from the DLD showing why this may not be permitted.

But it isn’t all. Here are seven things you should know if you want to prolong your lease in Dubai.

7 must-knows for Dubai tenants looking to renew

1. 90-day notice

If landlords wish to raise the rent, they must give 90 days’ notice 90 days before the end of the leasing term. If the landlord fails to send any electronic or written notice at least 90 days before the end of the lease, the contract will automatically renew at the same rental price and terms as the previous year. So, unless your landlord provides you enough notice, there will be no rent increase. Simple as that.

2. 12-month notice

If your landlord wants to sell the property you are renting, or if your landlord plans on using the property for personal reasons (or the usage of a first-degree relative), they have to supply you with a 12-month notice. Before the eviction date, the notification must be in written and uploaded via registered mail or notary public.

3. Registered contracts

It is essential to get an Ejari certificate by registering your tenancy contract while renting a home in Dubai. This prevents the prospect of the property being rented out several times at the same time. Also, unless your contract is not registered with Ejari, the DLD’s Rental disagreement Settlement Centre will not intervene in the event of a disagreement or other issue.

4. Rent payment

The majority of rental homes in Dubai have fixed-term lease agreements. It also means that the landlord and tenant agree to the terms and conditions indicated in the tenancy contract, especially the form and frequency of rental payments, for a particular amount of time. Post-dated cheques are the most use method of payment, with the annual rent divided into two, four, or six payments. However, starting in January 2023, tenants will be able to pay their rent automatically using the Noqodi Ejari Direct Debit Service (DDS).

5. Rent hike disputes

The landlord’s planned rent increases must be consistent with the RERA rental index. When a rent increase is in dispute, any party can send the matter to the Rental Dispute Settlement Centre. There is a simplified dispute resolution system in place, which normally takes a few weeks to complete.

See our guide ‘Can my landlord increase my rent in Dubai in 2023’ for more information on if and how much your landlord can increase your rent.

6. Bills and utilities

As a renter, you are only responsible for paying utilities like power, water, and cooling for the term of your rent. Once your contract is completed, you should contact the utility companies and submit a copy of your last invoices to your landlord and/or agent.

7. Documentation

When your tenancy ends, it is important that you maintain a copy of all messages, bills, and other linked papers. These will be required if complaints are filed with RERA or the Dubai Rental Dispute Centre.

Read our blog to learn more about your rights as a tenant in Dubai: know your rights as a tenant in Dubai.

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