Is your tenancy contract up for renewal? Knowing the procedure to follow and the factors to consider before signing the contract can help prevent a lot of problems down the line.
Every tenancy contract has a deadline. Whether you’ve leased an apartment, villa, or townhouse, there’s a different contract for every property type—yet the basics remain the same. So, if you’ve leased property in Dubai, you’ll have to renew the tenancy at some point.
But what’s the process of renewing tenancy agreements in Dubai? More importantly, what things should you look out for when renewing your tenancy agreement? Let’s figure it out!
How to Renew Your Tenancy Contract in Dubai
Three months before your tenancy contract is due for renewal, your landlord will notify you if the rent will be increased for the coming year. This is a requirement in the Dubai rental law – Dubai Law No. 26 of 2007, which regulates relations between landlords and tenants in Dubai.
If the notice of rent increase is not delivered within 90 days, the landlord is not permitted to raise the rent. They cannot increase the rent if they’re late by even one day. Should you decide to renew the tenancy agreement, here’s the procedure to follow.
Step 1: Make arrangements with your real estate agent or landlord to submit post-dated checks for the future year. Details of payment, including whether you need to pay any amount in cash, will be included in your rental agreement.
Step 2: Get the receipt – Always collect your receipt after depositing the checks because the renewed contract from the agent may not be delivered on the same day.
Step 3: Register the Ejari – The new contract, signed by the landlord, must be registered. In Dubai, this process is known as Ejari. You’ll be requested to pay an Ejari fee of around Dh155.
If for some reason, the landlord is unwilling to renew your contract, and you haven’t breached any terms of the lease agreement, you can visit Dubai Land Department, Deira, with all the documents and checks for next year, and they’ll inquire into the matter and address the issue.
Things to Consider When Renewing Your Tenancy Agreement in Dubai
When renewing your tenancy contract, there are factors you need to take into account, including:
Your Future Plans
As per RERA tenancy laws, tenants must inform their landlord to renew their tenancy 90 days before the lease contract.
Before deciding to renew the tenancy, it’s important to consider your plans and determine whether the property fulfills your requirements. For instance, if you plan to start a family in the future or accommodate an elderly, is the house spacious enough to accommodate them?
If you’re planning to move out of the country soon, it’s best to opt for a short-term rental instead of the traditional annual term lease. But if the current home meets your needs and requirements, you can renew the contract.
Your Lease Terms
Ensure you know any changes to your lease terms before renewing the tenancy in Dubai. This may range from imposing parking fees to building restrictions, such as prohibiting pets.
It’s best to ask the landlord personally before the 90-day notice period approaches. To avoid problems down the line, make sure your new lease terms meet your needs before renewing your tenancy agreement.
Repairs and Maintenance
Dubai’s tenancy laws require landlords to ensure houses for rent are in optimal condition.
That said, landlords have the right to refuse tenancy renewal if the property requires major repair and maintenance. In this case, a compensation amount may be asked of the tenant. It’s important to prepare financially for the same and search for a new rental house as per your budget.
To Sum It Up
Before you renew your lease, it’s important to know the procedure for tenancy agreement renewal in Dubai and keep up with changes to the lease terms. Additionally, you’ll want to consider your future plans and ensure the property fulfills your requirements.
We hope this guide will help you make an informed decision while pondering over whether to renew your tenancy agreement. Feel free to comment and share!