Renewing a tenancy in Dubai can involve more than agreeing on the new rent. Tenants may also be asked to pay renewal fees, register their Ejari or accept changes to their tenancy terms.
But are all these demands legit? Know what is and what is not before you pay your landlord.
Property management companies, landlords and offices acting on behalf of the landlord cannot charge their tenants a fee for simply renewing a tenancy contract.
This is of course different from other legitimate costs that are associated with tenancy, such as official Ejari registration charges or an agreed fee for a separate service.
Can your landlord increase the rent?
A rent increase is different from a renewal fee. DLD states that the rent can be changed at renewal based on the applicable rental rules and Rental Index. If either party wants to change the rent or other tenancy terms, they generally need to notify the other party at least 90 days before the contract expires, unless both parties agree otherwise.
Tenants can use the official DLD Rental Index to check whether a proposed increase is applicable.
What about Ejari renewal?
Ejari registration is vital for the tenancy and tenants should make sure that the Ejari registration is done. DLD’s Dubai REST platform provides services for lease registration, renewal and cancellation.
What if the landlord refuses to accept the rent?
A dispute can arise if the tenant believes the proposed rent or other renewal terms are not correct.
If a landlord refuses to accept the rent, the tenant can use the Rental Disputes Center’s Offer and Deposit procedure. This allows the tenant to formally offer the rent through the RDC process. The service requires documents such as the existing lease, the new lease and relevant payment records.
Saving copies of the tenancy contract, notices, payment records and communication with the landlord can be important if a dispute develops.
What should tenants check before renewing?
Before renewing your Dubai tenancy, check:
Current rent and proposed new rent
DLD Rental Index
90 day notice period
Any proposed changes to the contract
Ejari registration
Any additional charges
Payment records
Existing tenancy terms
Rent renewal is not just about the new rental amount. Understanding the difference between a rental increase, official registration costs and other charges can help tenants avoid unexpected costs.
For landlords and tenants, getting the renewal terms clear before the existing contract expires can also help prevent unnecessary disputes.
Source: Gulf News