8 Things To Consider Before Tenancy Renewal In Dubai

Monday 22 August 2022

Tenancy Renewal In Dubai

Investors, entrepreneurs, and people from all walks of life are attracted to the emirate. This has helped Dubai become a primary residence for a great number of people, without a doubt, especially in the case of long-term rental properties in Dubai. Many people prefer tenancy renewal in Dubai each year, proving this.

Since we’re talking about Dubai, the place is well-known for its strictest legalities, which make the entire leasing process intimidating if you don’t follow them. A new home with multiple obstacles would not be appealing to anyone. Therefore, it is important to carefully renew the tenancy contract in Dubai.

Tenancy contracts in Dubai have deadlines, too. No matter what type of property you rent, the basic principles remain the same, regardless of the type of contract you sign. Thus, you will need to renew it at some point in the future.

In any case, here are a few things to consider before tenancy renewal in Dubai:

What To Know Before Tenancy Renewal In Dubai?

 

1
3 Month Notice Provision

A 90-day notice of non-renewal must be provided by either the landlord or the tenant. According to RERA Dubai, landlords must inform their tenants three months before they intend to raise the rent. When verbal and non-verbal communications are received, the rental contract in Dubai is automatically generated based on the previous year’s terms.

2
Term Of One Year

The landlord cannot ask you to leave immediately if he plans to renovate, occupy themselves or sell property in Dubai. Due to the Tenancy Law in Dubai, they are required to request eviction of the tenant. A year prior to the termination date, they must provide a written notice notarised from Dubai Land Department informing you that it’s time to leave. Upon receiving the notice, you can begin house hunting as an alternative. Prior to tenancy contract renewal in Dubai, both parties must agree on this.

3
Appraisal Rules For Rent

You should remember that your landlord cannot raise the rent based on their own discretion during the process of tenancy renewal in Dubai. The RERA Index calculation is the only method for raising them. An increment must be delivered three prior to the contract renewal, as previously stated.

In the case of rent that is less than the RERA rent for your community in Dubai, your landlord may raise it in accordance with the RERA rate. Post-dated checks are usually used to pay the amount.

Rent can, however, be negotiated by tenants. To find out what rates are competitive in your area, do some research from your end.

4
Regular Maintenance & Renovation

If the property needs renovations or regular maintenance, the landlord can refuse a tenancy contract renewal in Dubai. Most landlords ask for compensation for fixtures since tenants accompany the property for rent in Dubai. In addition, the landlord must submit an approval report from Dubai Municipality. These factors can be included in the tenancy contract in Dubai to avoid unwanted conflicts.

5
Rental Payment Regulations

The tenancy contract in Dubai is renewed according to the rental structure in each neighborhood. Even if a property is the same size and offers similar amenities, the rent in Dubai Marina will be different from that in Downtown Dubai.

Rental payments in Dubai must be made 20 days prior to the expiration of the previous lease. The annual installments of rent are usually split into two, four, and six installments, as previously mentioned.

6
Ejari Registration

Renewed tenancy contracts in Dubai need to be registered with EJARI by the landlord. Most often, they hand this responsibility off to the real estate agent in Dubai, but at the end of the day, it’s the tenants who bear the burden. In order to avoid having your property rented out twice or thrice, you need to renew your tenancy contract with EJARI. A DLD’s Rental Dispute Settlement Centre will not be intruding in case there is any conflict among the parties if your tenancy contract in Dubai is not registered.

7
Organizing Finances

When renewing a lease agreement in Dubai, it is crucial to organize your expenses. You must determine whether you can afford the rent increase since the landlord can increase it. You will need to sort out your expenses before renewing your lease in Dubai as the annual rental properties in Dubai take up a significant chunk of your paycheck.

In the coming months, do you want to reduce your spending? If moving within the same neighborhood, prefer a budget-friendly rental property in Dubai.

8
Lease Term Negotiation

A tenancy contract renewal in Dubai should also include an agreement on lease terms and fees, including park fees and pet allowances. Ask your landlord before the 3-month notice period approaches if this is generally recommended.

The lease terms of the tenancy contract are important, as they can lead to unpleasant situations later if you are not on the same page. The lease also includes access to amenities shared such as fitness centers, spas, swimming pools, and regular maintenance.

The Takeaway:
Tenancy renewal in Dubai is an important process. You should be very careful here. Therefore, you should take all these factors into account before signing on the dotted lines, as they will help you make an informed decision.

Looking for a property for rent in Dubai? Contact Houzon, the best real estate agency in Dubai and we’ll take care of all your needs.

Compare Listings

Book a Viewing