Understanding Dubai’s tenancy contract renewal process can be challenging for many residents. With the city’s dynamic real estate market and distinct rental regulations, both tenants and landlords need to be well-informed about tenancy renewal agreements. Whether you’re a long-time resident or new to Dubai, being aware of the tenancy contract renewal fees is essential to avoid unforeseen costs and potential legal complications. In this blog, we’ll explore all the crucial details you need to know about renewing a tenancy contract in Dubai.
Decoding the Tenancy Renewal Agreement
Tenancy renewal extends an existing rental agreement between a tenant and landlord for a specified period. It is governed by the Dubai Real Estate Regulatory Agency (RERA). Tenancy renewal involves maintaining the original contract or agreeing to new terms. It requires a 90-day notice for any changes and follows the Dubai Land Department’s rent increase cap. The renewal process includes signing a tenancy renewal agreement and registering it with the DLD, often through the Ejari system. It involves potential rent increases, security deposit adjustments, and agency fees. Understanding these aspects and the Dubai tenancy contract renewal rules is crucial for a smooth and legally compliant renewal process.
How to Successfully Renew Your Tenancy Contract?
Law requires a 90-day notice when the landlord intends to increase the rent or the tenant plans to relocate. Landlords can raise the rent after a year, but any increase must comply with the guidelines established by RERA’s Rental Index. Tenants can use the RERA rental calculator in Dubai to ensure a fair renewal amount. If the proposed rent significantly exceeds the average market rate for similar properties in the area, tenants have the legal right to challenge it. Once both parties agree on the new rent and payment terms, they can renew the tenancy contract for another year. Before you decide to renew your lease, consider potential potential costs.