It is known everywhere that a big influx of people are shifting to Dubai with the dream of making the glitzy Emirate their main home. The city is gaining the attention of entrepreneurs, investors, and individuals belonging to all types of backgrounds. And for their permanent residency, the rental properties in the city are a popular option.
In fact, many individuals prefer to renew their tenancy contract each year. This alone is a proof of how desirable these rental properties are. When it comes to real estate, they redefine privacy, comfort, and opulence. Since we are talking about Dubai, the Emirate is recognized by strict and inflexible legalities. The whole leasing process becomes overwhelming if you do not understand or follow them.
No one wants to shift to a place where new obstacles are awaiting them. This is the importance of renewing the tenancy contract with detail and care. Since all tenancy contracts come with their own specific deadline, so do the ones in this city.
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23 April 2025
Whether you have leased a townhouse, villa, or a flat, there is a different contract for each property type. However, the basics are pretty much the same. So, at some stage, you will have to renew the tenancy contract. But prior to doing so, LuxuryProperty.com – a leading real estate company in Dubai mentioned below some important points you need to remember at any cost:
What to Keep in Mind Before Renewing the Tenancy Contract?
● 1 year Termination Period
In case the landlord decides to renovate or sell the real estate, and asks you to leave the house instantly, this is not at all affordable. The reason is because the landlord is obliged to request the eviction of the renter. This is as per the Tenancy Law.
Although the termination period of leaving is a year, the landlord is supposed to inform you 1 year prior employing a written contract or a registered email. You can initiate your property search as an alternative choice after receiving the notice. In an ideal case, this situation needs to be comprehensible between the two parties prior to renewing the tenancy contract.
● Provision of a 3-month notice
Either from the renter’s side or the landlord, there needs to be a provision of 90 days notice of a non-renewal of the lease contract. According to RERA Dubai, in case the landlord wants to increase the rent, they must declare it 3 months before the renewal.
But when it comes to non-verbal or verbal communication, the rental contract will accordingly be formed under similar terms based on the last year.
● Rules for rent increase
In the procedure for renewing the tenancy contract, keep in mind that the landlord is not allowed to increase the rent whenever they wish to. The landlord can only increase by the RERA calculation. As stated above, they must mention it 3 months before the renewal of the contract.
RERA has already guaranteed a rental amount for all neighborhoods. Therefore, your landlord can only increase the rent depending on the RERA rate if your current rent is less than the assured amount. But this amount is often paid in terms of post-dated cheques.
And as a tenant, you can negotiate the rental cost. Carry out some research on your behalf to explore competitive rates in your region of Dubai.
● Consistent Maintenance Or Renovation
Your landlord can refuse the tenancy contract renewal if his real estate demand sees consistent maintenance or renovation. As the tenants reside in the property, the majority of landlords require compensation for the fixtures.
Nevertheless, the landlord needs to submit a technical report delivered by Dubai Municipality as approval. The addition of such factors into the rental contract avoids getting into unpleasant conflicts.
● Registration with EJARI
The landlord bears the responsibility of registering the tenancy renewal contract with the EJARI. Although they often assign this chore to the real estate agent, it actually belongs to the tenant.
Having your tenancy contract renewed with EJARI is crucial to avoid the misfortune of the real estate being rented out thrice or twice. Moreover, if a conflict arises among the two parties, the DLD Rental Dispute Settlement Center will not interfere if the contract is not registered with the EJARI.
● Regulations of the rental payments
As the rental structure is varied for all communities in the city, the tenancy contract is renewed according to it. In short, the rent of the rental properties available in Dubai Marina will be different from the ones in Downtown Dubai. This contrast will exist even if they have the same size and boast similar amenities.
But tenants are supposed to pay for the rent 20 days before the expiration date of the last contract. As stated above, rents are usually paid via post-dated cheques. In this method, the yearly installments are divided through 2, 4, and 6.
● Sort Out Your expenditures
The organization of your finances is a highly important factor while renewing the tenancy contract. As the landlord is permitted to raise your rent, you must ensure whether you can afford it or not. Because let’s be honest, the yearly rental cost takes a huge portion of your paycheck. Therefore, it is important to manage your finances prior to the renewal.
If you wish to not break your budget in the next few months, try adopting an affordable alternative within the same neighborhood.
● Negotiate the lease terms
Agreement on the lease terms is another critical factor you have to attend to while the tenancy contract is being renewed. It can be anything from the allowance of pets to the parking fees. If generally advised, ask your landlord as the 3 months’ notice period comes around the corner.
Make sure that you are on the same page with your landlord when it comes to the lease terms to prevent troubling conflicts in the future. It also adds access to shared facilities, such as swimming pools, fitness centers, regular maintenance, and spas.
Summing it Up
All in all, renewing the tenancy contract is a vital procedure. Therefore, you need to be extra diligent in this regard. So, remember all the above-mentioned points prior to signing on the dotted line. This is how you can finalize a conscious and informed decision.
