Dubai is in a continuous evolution and progression in every aspect of life. It has become a city of gold and opportunity and people from across the globe are interested in being a part of this glamorous city, several people have migrated from other regions to Dubai.
Due to the increase in population, the demand for rental property is also increasing. Dubai offers each type of property from luxurious studios to spacious villas at a reasonable and affordable price for expatriates and foreigners, whether they are tourists or have shifted to Dubai with their families to adopt the luxurious lifestyle in Dubai.
Renting a property in Dubai is a more trending, affordable, and inexpensive opportunity in the current era. As a tenant, it is important to know the rules and regulations that are necessary to follow, regulated by the UAE’s government. RERA Real Estate Regulatory Agency has set some rules and there is high strictness to follow these rules otherwise individuals have to face the music in the form of legal notice.
After renting a property in Dubai, how to renew your tenancy contract in Dubai, is the most highlighted query to resolve. To know some of the important points of renewing a tenancy contract in Dubai, just keep on reading. This blog will help you explore the points that are necessary to remember for renewing a tenancy contract.
Important Points To Know Before Renewing The Tenancy Contract
Here is the list of 8 different things that are necessary to know before renewing the tenancy contract:
Three Months Notice Period
As per rules regulated by the “RERA” Real Estate Regulatory Agency, there must be a three-month notice period before the end of the lease period ends. For both parties, tenants or landlords, if they want to renew the tenancy contract then they have to inform three months before the rental period ends. If they do not inform the contract will be automatically renewed as per previous conditions.
In case, the landlord wants to increase the rental amount, he has to inform the tenant three months before, and if he does not inform then the rental amount increment is not applicable. The tenant is not obliged to pay the rental amount as per the landlord’s demand if he does not follow the tenancy law.
Termination Period Of A Year
There is a 12-month termination period, in the scenario where the landlord demands to leave the property immediately. He has no right to sell the property or to ask the tenant to leave the property straight away. As per tenancy law, a landlord has to inform the tenant to leave the house a year before in a properly registered written statement.
A one-year termination period is given to the tenant so that he can find another option for renting a home. Before renewing the tenancy contract, there must be a defined agreement between the landlord and tenant to avoid any dispute regarding the rental agreement.
Rental Amount Increment
According to the tenancy law, a landlord has a legal right to increase the rental amount but before increasing the rental amount he has to inform or notify the tenant 90 days before the completion of the tenure period or renew the contract.
If the landlord does not follow the rules and regulations of the tenancy contract, then the tenant can refuse the increment and the new contract will start on the previous amount. In a rental amount increment dispute, a case can be registered against the party with a rent dispute settlement case at the Dubai Landlord Department, if the landlord forces a tenant to increase a rental amount without written notification.
If the landlord properly follows the rules and notifies the tenants before 90 days then the tenant is legally obliged to sign the renewal agreement, before signing the renewal contract make sure all the conditions in the agreement are legally acceptable.
Notify Utility Providers
As a tenant, you are obliged to pay the utility bills such as electricity, water, and cooling until your agreement. Once the agreement is finished, you have to inform the utility providers – DEWA for electricity, water, and other utility bills, and hand over the bills’ final copy to the owner of the property to avoid any conflict.
Registered Contract With EJARI
It is necessary to register your contract with EJARI, to avoid the possibility of renting the same property twice or thrice. This is the responsibility of the landlord to obtain a certified registered contract. If the renewal contract is not registered with EJARI, then DLD’s Rental Dispute Settlement Case will not handle any dispute or conflict regarding rental property.
Rental Payments Regulations
An important thing to note is that, in Dubai, the rental structure is not the same in all areas. The rental amount in one neighborhood of Dubai is different from the other neighborhood. For instance, even if the property type and structure of the property in Dubai Marina and Downtown Dubai are the same, the rental structure or amount will not be the same, it varies from area to area.
The most common way to pay the amount is through cheques and the annual rental amount is payable in three different installments; two, four, and six.
Communication With The Landlord
Before renewing the contract, there must be proper negotiation and clear or straightforward communication between the two parties; tenants and landlords. They must agree upon terms and conditions and follow the tenancy law to avoid any dispute or conflict.
Drafting The Renewal Agreement
Another important thing to follow is to securitize the contract in written form as legal proof. Maintain a copy of each necessary document that is required for the tenancy contract. A copy of bills, renewal agreement, and all the documents are necessary, in case of any dispute or conflict, you must have proof of every action or statement of the against party.
Renewing the contract is a crucial thing to handle. There is a chance of fraudulent activity or illegal actions, so you must know all the tenancy laws, rules, and regulations in Dubai to make a wise and informed decision about renting a property in Dubai. If you hire a professional real estate agent for legal advice, that is one of the best things to avoid any hassle or uncertainty.
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