Dubai tenancy renewal: A guide for tenants 2022

Is your Dubai tenancy contract due for renewal?

You can choose from a variety of rental options in Dubai, from cozy studio apartments to massive multi-bed villas. So when it is time to renew your lease, it is important to determine if the the rent increase your landlord demands is in line with the what the Dubai Land Department allows. 

One of the ways you can check this is through DLD’s rental calculator. This nifty online tool gives you a clear idea of the rent increase you can expect if your contract is up for renewal, giving you the opportunity to make an informed decision without being subjected to exorbitant increases.

But that’s not all. Here are seven things you need to know as a tenant.

7 must-knows for Dubai tenants looking to renew

1. 90-day notice

Tenants and landlords both have 90 days to cancel their tenancy agreement. RERA also requires landlords to provide 90 days’ notice when raising the rent. In the absence of any electronic or written communication, the contract automatically renews at the same rental price and according to the same terms and conditions as the previous year. So unless your landlord notifies you, 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 relative of the first degree), he or she must give you a 12-month notice. The notice must be in writing and sent by registered mail or notary public before the eviction date. This is non-negotiable.

3. Registered contracts

Obtaining an Ejari certificate by registering your tenancy contract is a must when renting a property in Dubai. This is to prevent any incidence 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 if your contract is not registered.

4. Rent payment

The majority of Dubai’s rental properties have fixed-term lease agreements. For a set period of time, the landlord and tenant agree to the terms and conditions, specified in the contract which includes the mode and frequency of payments. The most common one is payment through post-dated cheques, where the annual rent is split in two, four, or six instalments. In July 2022, the DLD introduced a new system that allows direct debits from tenants’ bank accounts.

5. Rent hike disputes

Rent increases must be in accordance with RERA rental index when it comes to renewals. 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 take a few weeks to complete.

6. Bills and utilities

The tenant of a rental property is only responsible for paying their consumption-based utilities, such as electricity, water, and cooling, on a monthly basis. Once your contract is up, you will only need to provide your landlord and/or agent with a copy of the final DEWA bill.

7. Documentation

The most important thing is to keep copies of all correspondence, bills and other related documents. You will need these in case you need to take your case to RERA or the Dubai Rental Dispute Centre to resolve your future concerns.

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.