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Leasing Dubai real estate: Know all your renewal rights

Leasing Dubai real estate: Know all your renewal rights

Renewals for rented Dubai apartments and villas are generally straightforward, but occasionally you will get someone trying to pull the wool over your eyes. So, here are some common questions answered on your Dubai real estate renewal rights and obligations.

 

Dubai City

Can my landlord suddenly increase my rent?

Any rental increases are only permitted at the renewal of a tenancy contract if they are communicated 90 days before the expiry of the agreement and the RERA rental calculator says it is allowable. The maximum allowed rental increase in any one year is 20 per cent. If your landlord tries to hike the rent on your leased property without warning, politely explain that you understand the legal position and ask him to send the new contract to you immediately. If you have a dispute, contact the Dubai Rental Committee – visit www.rdc.gov.ae

 

Do tenants need to pay a property agent fee for rent contract renewal?

Tenants only need to pay if it is written into the contract. However, it is only fair that if someone does some work for you they are paid for it. Fees tend to range from Dh500-Dh1,000, or as a small percentage of the annual rent. A tenant can object to heavy fees, but that would be down to negotiation between the tenant and the agent.

 

Dubai City

Must I register my new rental contract with Ejari?

Yes – although sometimes the landlord will take care of this, so discuss with him. Ejari is a system that is governed by RERA to make registration of rental/lease agreements easy and accessible to owners and Real Estate Management Companies of various categories. The Ejari system provides a full portfolio of services beyond registering the initial lease agreement for any rented Dubai real estate. Rent renewals, cancellations, transfers and terminations can all be logged. Ejari ensures rental agreements are fair and transparent to the parties involved and that their terms and conditions are given full weight. It is in a tenant’s best interest to always register a contract – visit www.ejari.ae.

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