Renewing a tenancy contract in Dubai is straightforward if you follow these official guidelines provided by the Dubai Land Department (DLD) and Ejari system. Let’s get into the breakdown of what to look out for.
Step 1: Check Rental Increase with RERA Calculator
Landlords must inform tenants of any intended rent increase at least 90 days before the expiry date. Similarly, tenants must inform landlords, in writing via email or registered mail, if they wish to renew or cancel the tenancy 90 days before the tenancy. Use the Dubai Land Department’s Rental Increase Calculator to verify if the proposed increase is permitted if the tenant wishes to renew.
This official website is dynamic and adjusts rental prices depending on a variety of factors, you can read more about it here. This tool ensures transparency by comparing your rent against market averages, allowing increases of 0% to 20% based on your current rent relative to market values.
Step 2: Prepare and Sign the Unified Tenancy Contract
Once both parties agree on the rental terms, draft and sign a new Unified Tenancy Contract, a standard tenancy contract issued by the government of Dubai. Typically, tenants provide post-dated cheques during this process for which they must obtain an official receipt. Clearly specify the rent amount, payment terms, and the duration of tenancy.
Review the Addendum Carefully
Every tenancy contract comes with an addendum that must be scrutinized by all parties. It may include clauses such as:
- Painting and handover condition: You might be required to repaint or return the property in original condition.
- Maintenance responsibilities: Standard practice places maintenance under AED 500 or AED 1,000 on the tenant; above that, it’s the landlord’s responsibility.
- Approved maintenance companies: Ensure the landlord provides or approves a reputable maintenance provider to avoid delays in maintenance. If not, there should be a direct line of communication with the landlord in case of any maintenance issues with the property.
- Break Clause: In case there is a special circumstance in which the tenant may get relocated by their employer or may need to break their lease for any reason, this should be communicated to the landlord and reflected in the addendum clearly.
- Upgrades to the property: If the tenant wishes to modify / upgrade the property, they must obtain written authorisation from the landlord, the community management and file for all the requisite approvals from related authorities all of which should be mentioned in the addendum.
- Direct communication with landlord: Stay in direct contact with the landlord for urgent issues. Agents may not act promptly or may deny responsibility, especially if no longer associated with the transaction.
Step 3: Complete Ejari Registration and Renewal
Ejari registration is mandatory and protects both tenants and landlords legally. Renew Ejari by submitting your new tenancy contract, latest DEWA bill, Emirates ID copies, and renewal fees. Online renewal via the Dubai REST app or DLD’s website costs approximately AED 120 (including VAT). Alternatively, renew in-person at Real Estate Trustee Centres for around AED 215 (VAT inclusive).
Step 4: Understand Agency Fees and DIY Renewals
Agents typically charge between AED 500 to AED 1,000 for contract renewals. These fees may include Ejari processing, document handling, and admin charges. However, tenants can easily avoid extra costs by renewing themselves. Simply log in to the Dubai REST app or DLD website, upload required documents, pay the fee, and instantly receive your Ejari certificate.
What Tenants Should Watch Out For
- Unfair clauses in the addendum: Always read the fine print.
- Delayed maintenance: Follow up directly with landlords.
- Deposit deductions: Ensure the condition of the property is documented at move-in and move-out.
- Unauthorized rent increases: Validate every increase using the RERA calculator.
Renewing your tenancy contract promptly ensures continued legal protection, uninterrupted utility services, and peace of mind throughout your tenancy period. As always, keep checking Viewit for the latest in Dubai real estate news!