Confused about tenancy renewal rules and increases?

Renewing your tenancy contract can be a bit of a maze but don’t worry,  in this blog we will break it down for you to understand as simply as we can. This can also be read as an update to previous blogs we have written Mastering Property Valuation: How Much is my Property Worth? and Dubai Rental Index: Assessing Your Community's Prices

Renewal Requests 

Sending the tenant or landlord requests to change the tenancy terms for the renewal of the contract should be in writing and notice is as per your tenancy contract. If no term is included in your tenancy contract, then it refers to the law which is at least 90 days’ notice. This is a full and clear 90 days so make sure to give notice at least 91 days in advance.  We suggest using email or WhatsApp for clear communication.

Agree on Changes

Any changes to the contract, other than the rental amount, must be agreed between both parties. A landlord can’t insist on changing from 4 cheques to 2 and nor can a tenant insist on increasing from 4 to 6, these are negotiable conditions and must be agreed upon or existing terms to be continued.

Rental Increases

In cases of rent changes and as we are in a market which is incurring rent increases, let's talk about this! The maximum increase allowed and supported by the laws is 20% of the current rent amount. For example, if annual rent is currently AED 100,000 and the average rent is calculated at AED 141,000 or above (41% under the average rental amount) then an increase of 20% is applicable and it is Landlords right to insist on this provided written notice is sufficient.

Changes in the Rental Valuation Service  

You may have heard about the rental valuation service available to look at a specific property and request a more accurate valuation, we even wrote about this last month! As of 1st April 2024 this service is no longer available without a court order approving the valuation request. A court order would need to be issued via the registration of a case at the Rental Dispute Center.

Updated Rental Index Calculator

The rental index calculator was updated also on this date, and we are finding the rates are more accurate to the current rental rates.  

Need Help?

Exclusive Links has looked after our client's properties for many many years and gone through all the different scenarios from Tenant and Landlords situations and requests. If you have a specific question or concern and need some guidance and wish to tap into our 19 years of experience please feel free to contact us for a chat and hopefully can help you navigate the mind fields of tenancy laws and renewals.