How to Renew Tenancy Contract in Dubai
Renewing a tenancy contract in Dubai is a common process for both residents and landlords, assuring a continued and smooth rental experience. Given Dubai’s dynamic real estate market, understanding the steps and legalities involved in renewing your tenancy contract is crucial.
What is a tenancy contract?
A tenancy contract is an official document or a binding agreement between a landlord and a tenant, outlining the terms and conditions of the rental property.
In Dubai, tenancy contracts are regulated by the Dubai Land Department (DLD) and must be registered with the Ejari system, which ensures transparency and legal protection for both parties.
Key Elements of a Tenancy Contract
- Rent Amount: negotiated and agreed rental price;
- Duration: typically, a year, but it can differ;
- Payment terms: frequency and mode of payments;
- Responsibilities: maintenance, repairs, and other obligations;
- Renewal terms: conditions under which the agreement can be renewed.
Steps to Renew a Tenancy ContractReview your current contract
Before initiating the renewal process, thoroughly review your existing tenancy contract. Pay heed to clauses related to renewal, notice periods, and any conditions that might affect the renewal process
Initiate the renewal process early
Start the renewal process at least 90 days before your current contract expires. This allows ample time for negotiations and addressing any issues that may arise. According to Dubai’s Rental Law, either party must give a 90-day notice if they wish to alter the terms of a contract
Negotiate rent and terms
Dubai’s rental market can fluctuate, so it is essential to discuss and agree on the new rental amount and terms with your landlord. Use the Rental Increase Calculator provided by the Dubai Land Department to check if any rent increase is within the legal terms. This tool helps you determine if the proposed increase complies with the Real Estate Regulatory Agency’s (RERA) rental index
Draft the new contract
Once terms are agreed upon, the landlord or the property management company will draft the new tenancy contract. Ensure that all agreed-upon terms are clearly stated and that there are clear understandings.
Register the contract with Ejari
Registering the tenancy contract with Ejari is a fundamental concept in Dubai. This can be done through the Ejari website, mobile app, or at any approved typing centre. To register, you will need:
- Original tenancy contract: the newly signed agreement
- Emirates ID: for the identification process
- Passport copy: both tenant and landlord (if applicable)
- Title deed: proof of property ownership by the landlord
- Previous Ejari certificate: if applicable
Pay the Ejari fees
There are fees associated with registering the tenancy contract with Ejari, typically around AED 220. These fees can be paid online or at the typing centre.
Obtain the Ejari certificate
Once registered, you will receive an Ejari certificate. This document is crucial as it is required for various services, including setting up DEWA (Dubai Electricity and Water Authority) accounts, internet, and other utilities.
Addressing Common Issues
Rent disputes: If there is a misconception over the rent increase, tenants and landlords can approach the Rental Dispute Settlement Center (RDSC) for resolution. Ensure you have all necessary documentation and evidence to support your case.
Maintenance and repairs: Discuss and agree on any maintenance or repair issues before renewing the contract. Ensure these are documented in the new contract to avoid future disputes
Notice periods: Be mindful of notice periods for renewal, termination, or any changes to the contract. Failing to adhere to these periods can lead to legal complications
Tips for a Smooth Renewal Process
- Communicate early: start discussions with your landlord well before the contract expires;
- Stay informed: keep updated on current rental laws and regulations in Dubai;
- Use reliable sources: refer to the DLD and RERA for exact and specific information and tools like the Rental Increase Calculator;
- Maintain records: keep copies of all comprehensive agreements and receipts;
- Seek professional help: consult with a real estate agent or legal advisor to assist you through complex situations.
How to Renew Tenancy Contract in Dubai: Conclusion
Renewing a tenancy contract in Dubai is straightforward when approached with due diligence and awareness of the local laws. By starting early, negotiating effectively, and ensuring all legal requirements are met, both tenants and landlords can relish a hassle-free renewal experience.
Understanding your rights and responsibilities, using the resources provided by the Dubai Land Department, and maintaining open communication with your landlord is key to a smooth and efficient tenancy contract renewal in Dubai.
