# Advice on tenancy renewal in Dubai – can landlord increase after first year?



## Emanef (Dec 19, 2012)

Hi guys

The tenancy on our current place started on 2 May 2013. We had a text from EJARI about a month ago our current tenancy certificate will expire on 1 May 2014. 

I spoke to the landlord’s representative on the phone a week ago about another matter and he asked if we’d be staying on. I said probably, we like living here, he seemed pleased, said we’re good tenants, but we’ve not had anything official either way. 

One of my wife’s colleagues is in a similar position, but his landlord has issued him a rent increase with the renewal, and we’re trying to establish if and how much they can increase it by. 

Looking at http://www.dubailand.gov.ae/English/eServices/RentalIncreaseLawsEN.aspx, Law no 26 of 2007, Article 9 states that the landlord cannot increase the rent or change the terms until two years have elapsed from the date of inception of the original tenancy. 

Law 22 of 2008 then makes changes to certain laws, including Article 9 of Law 26, but does not seem to revoke it, ie presumably cannot increase for the two years from inception part still applies? Presumably the amendment on rent increases relates to increases after that two years?

There’s then a newer Decree N0 2 of 2011 which states the amount of the increase should be based on a percentage which is based on the market rents for similar properties. 

However, that still does not revoke the original law 26 statement that the landlord cannot increase rent for the first two years of the tenancy. 

Is that correct, and the landlord still cannot increase it until after the initial two years? Am I understanding that correctly? Or are the laws out here quite badly written…?! UK law is certainly more detailed, and amendments are just that, and laws are revoked or superseded which makes it clear which ones no longer apply! 

Also, should the landlord have contacted us sooner? What are his responsibilities, whether he wants to renew or end the tenancy? 

First time we’ve had any dealings with legalese out here…. Maybe it loses some in translation from Arabic to English!

Edit: I've also tried using this but it's not working.... http://www.dubailand.gov.ae/English/eServices/RentalIncreaseCalculatorEN.aspx


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## dubailawsdotnet (Feb 23, 2014)

Law no 26 of 2007, Article 9 states that the landlord cannot increase the rent or change the terms until two years have elapsed from the date of inception of the original tenancy. 

The above only applies if you JUST moved into a new contract. If Ejari has several copies of the same contract renewed, that is not valid then  So forget this, it is normal today for rent to be adjusted yearly according to the RERA rent calculator.

So if you just moved in! then yes....you do not pay increase THIS year...you pay the year after....

And for sure your landlord wont like that and will definitely push all the way he can...simple answer is visit the rent committee! Stop always assuming landlords put tenant at their best interest. Wrong.....landlords always put their interests first only....money and more money....tenants come and go...


cheers


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## Emanef (Dec 19, 2012)

Hi dubailawsdotnet, thanks for replying so quickly!

I think I understand, but can I just clarify. Our tenancy began on 2 May 2013, so the landlord cannot increase it until 2 May 2015 (ie two years from when our tenancy originally began)? Am I understanding that correctly?


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## dubailawsdotnet (Feb 23, 2014)

Emanef said:


> Hi dubailawsdotnet, thanks for replying so quickly!
> 
> I think I understand, but can I just clarify. Our tenancy began on 2 May 2013, so the landlord cannot increase it until 2 May 2015 (ie two years from when our tenancy originally began)? Am I understanding that correctly?


Correct.....when the 2 May 2014 passes....after that he may adjust an increase.

2013 (1 year) - end of 2014 (2nd year) - 2015 (increase according to rent calculator)


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## Emanef (Dec 19, 2012)

Ah, ok, I don't think I am understanding that correctly then. From what you say, after one full year has passed and the second year begins, he can increase it from the beginning of the second year, ie he CAN increase it from 2 May 2014? 

So it's not two full years must pass and then it can be increased at the end of that second year? Or do you mean after the 2 May 2014- 1 May 2015 ends, only THEN he can increase it?

To me, two full years must elapse means 2 x 365 days, and only then it can be increased?


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## telecompro (Apr 4, 2013)

i believe it also depends on if your contract is renewable or not? Lots of them are not..check this.

I thought that the 2 yr rule is not applicable anymore since i also rented in Aug 2013 as a new contract..so confusing!


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## dubailawsdotnet (Feb 23, 2014)

Emanef said:


> Ah, ok, I don't think I am understanding that correctly then. From what you say, after one full year has passed and the second year begins, he can increase it from the beginning of the second year, ie he CAN increase it from 2 May 2014?
> 
> So it's not two full years must pass and then it can be increased at the end of that second year? Or do you mean after the 2 May 2014- 1 May 2015 ends, only THEN he can increase it?
> 
> To me, two full years must elapse means 2 x 365 days, and only then it can be increased?


correct


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## dubailawsdotnet (Feb 23, 2014)

telecompro said:


> i believe it also depends on if your contract is renewable or not? Lots of them are not..check this.
> 
> I thought that the 2 yr rule is not applicable anymore since i also rented in Aug 2013 as a new contract..so confusing!


The more you read...the less confusing...and rera is always available by telephone for any enquiries..

Category: Tenancy - Dubai Laws


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## Chocoholic (Oct 29, 2012)

Actually lots of people have said they scrapped that 2 year rule a while ago and that LL's can increase from the first renewal, inline with the rent calculator. BUT they must make any change to your contract 90 days before it's expiry - once this period has passed, the contract must be renewed under it's original terms and amount.

Also 'non-renewable' contracts are not valid nor are they recognised by RERA or the rent committee - they've been very clear on that fact.


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## Emanef (Dec 19, 2012)

dubailawsdotnet said:


> correct


Sorry, please bear with me... but which bit is correct? 

This bit...



Emanef said:


> ...after one full year has passed and the second year begins, he can increase it from the beginning of the second year, ie he CAN increase it from 2 May 2014?


or this bit?



Emanef said:


> Or do you mean after the 2 May 2014- 1 May 2015 ends, only THEN he can increase it?
> 
> To me, two full years must elapse means 2 x 365 days, and only then it can be increased?


On it not applying to some contracts, presumably all contracts have an orginal inception date and even if a landlord issues a fresh tenancy after the first year it's still effectively the second year for the purposes of that law?


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## Chocoholic (Oct 29, 2012)

Honestly the best way to get answers is to pick up the phone and call RERA 600555556

They're very nice and helpful.


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## Emanef (Dec 19, 2012)

OK, so I just called and they said that that rule with not being able to increase for two years no longer applies and now the landlord can increase after one year but with conditions. 

They must give notice 90 days before the tenancy ends, and it must fall within the percentage increases given in Decree 2 of 2011. 

So my original understanding was incorrect and law 26 has been revoked (in one way or another....!)


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## telecompro (Apr 4, 2013)

exactly thats what i thought..the new rules overrides this 2 yr non-increase policy


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## Byja (Mar 3, 2013)

Chocoholic said:


> Also 'non-renewable' contracts are not valid nor are they recognised by RERA or the rent committee - they've been very clear on that fact.


Are you abso effin lutely sure about this?! Have a meeting before Rent Committee (now it's Rental Dispute Center) soon, and the only thread my LL is holding on to is the "non-renewable" part?

And you gotta love The National when it comes to giving rental advice:

30th of Nov 2013: Dubai tenant must move out after signing non-renewable contract

15th of Jan 2014: Homefront: can a landlord increase Dubai rent after agreeing on price?

26th of Feb 2014: Rent advice: Is a ‘non-renewable’ Dubai tenancy contract legal?

And I remember clearly that I read an article before 30th of Nov where they stated that non renewable TCs are not legal once you register your TC with Ejari.


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## NjxNA (Jan 13, 2013)

Emanef said:


> Sorry, please bear with me... but which bit is correct?


What Chocoholic mentioned is correct as per current law.
Rent can be increased according to the calculator on the second year but only if notified 90 or more days before the end of the contract.


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## Cos_mo (Feb 9, 2012)

I contacted RERA today....the LL CAN increase the rent after the first year...check the rent increase calculator....for me it's 10%

Also if the LL puts non renewable on the contract this is NOT allowed and if you take a case to RERA you will win...direct from the lawyer there


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## Cos_mo (Feb 9, 2012)

I also meant to add if he gives you 90 days notice re rental increase


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## BBmover (Jun 15, 2013)

NjxNA said:


> What Chocoholic mentioned is correct as per current law.
> Rent can be increased according to the calculator on the second year but only if notified 90 or more days before the end of the contract.


We are still waiting as 90 days is up but have an addendum in our contract that was mutually signed stating 60 days notice. Have been told this applies but not by Rera. Anyone know of thus? 
Waiting to see tomorrow if we receive any notice as it's the 60 day limit before contacting RERA as couldn't get hold of them today due to my work schedule.


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## Emanef (Dec 19, 2012)

To be honest I would do what Chocoholic suggested to me and just wait until you can call RERA, otherwise you might get conflicting and you don't know what's right and what's wrong (although I guess you could always end up being unlucky and getting a RERA advisor who doesn't know what he/she is talking about!)


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## BBmover (Jun 15, 2013)

Emanef said:


> To be honest I would do what Chocoholic suggested to me and just wait until you can call RERA, otherwise you might get conflicting and you don't know what's right and what's wrong (although I guess you could always end up being unlucky and getting a RERA advisor who doesn't know what he/she is talking about!)


Yes phoning after the weekend.

Am I right in thinking your 90 days is well up so reverts to original terms from this years rent? Well done if it is!


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## Emanef (Dec 19, 2012)

Yes, it certainly is up if it's 90 days. To be fair to our landlord he's not mentioned if they're going to [try to!] put it up - he asked in the phone call if we would be staying on and I wasn't expecting it but said probably yes, but have since emailed to ask him what we need to do if we do want to renew, but my wife's colleague is in a similar situation and his landlord it trying to put it up by 5%. I can't remember when he moved in though so I'll let him know of the rules and he'll know if it was before or after 90 days and can take it from there.


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## Emanef (Dec 19, 2012)

.... looking into it more, it looks like we're in the situation where we can't not renew even if we want to, but likewise the landlord cannot end it now either, and cannot increase the rent, as neither us nor them have given any notices and it's around 60 days until the tenancy ends, so my undertstanding is that the tenancy has to renew and at the existing rent!

We're fine with that. The noisy people upstairs drive us crazy in the morning at the weekends and the internet connection is pretty poor (for a heavy user anyway!), but the thought of looking for somewhere else and then having to do all the move wasn't particularly attractive either, certainly not this year anyway, still feels like we're only just finding our feet here!


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## BBmover (Jun 15, 2013)

Contacted RERA today:

Dubai Law does state 90 day renewal period but as our contract was mutually agreed and signed with a 60 day renewal notice this does stand. So if anyone else has an addendum in their contract stating that beware.

As we are now within the 60 day notice, day 58, and should have been given renewal notice on 28th February RERA have stated our contract must be renewed under current terms and conditions without a rent increase. 

So, we have emailed our landlord and shall see what happens now......getting ready for it all!


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## BedouGirl (Sep 15, 2011)

Good luck. Hope everything works out.


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## BBmover (Jun 15, 2013)

BedouGirl said:


> Good luck. Hope everything works out.


So, emailed LL and stated we have not heard re renewal and notice period had passed and that Rera had advised if contract was to be renewed it would need to be under same terms and no rental increase. LL replied he would be delighted to renew and estate agent would be in contact and a slight rental increase.
Haven't responded and 2 days later still no contact from agent. We are going to contact Rera again with LL reply to our email and for further advice. Once we have advice again will respond to LL. Yes, the games are being played!


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## jarvo (Jan 8, 2012)

BBmover said:


> Contacted RERA today:
> 
> Dubai Law does state 90 day renewal period but as our contract was mutually agreed and signed with a 60 day renewal notice this does stand. So if anyone else has an addendum in their contract stating that beware.
> 
> ...


So the moral of the story is that tenants should not be pro-active, wait and hope that the 90 day (or less if written into the contract) notice period lapses in order to renew at the same contract terms without rental increase?

Could have done with this knowledge a couple of months ago before contacting the landlord asking about renewing the lease...


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## Byja (Mar 3, 2013)

jarvo said:


> So the moral of the story is that tenants should not be pro-active, wait and hope that the 90 day (or less if written into the contract) notice period lapses in order to renew at the same contract terms without rental increase?


*NO!*

Some of the Tenancy Contracts state that it is Tenant's responsibility to inform the Landlord 90 or less days before TC expires if they want to renew. If not, it is considered as if the Tenant does not want to renew.
The legality of such clause is questionable, but better to avoid any potential problems.


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## BBmover (Jun 15, 2013)

Byja said:


> *NO!*
> 
> Some of the Tenancy Contracts state that it is Tenant's responsibility to inform the Landlord 90 or less days before TC expires if they want to renew. If not, it is considered as if the Tenant does not want to renew.
> The legality of such clause is questionable, but better to avoid any potential problems.


Technically, we haven't said that we want to renew but we are asking for the LL to state the new terms and conditions and any rent increase. But we are the ones who have made contact well before our expiry date and now with the days ticking by still no resolution. Part of our contract also says renewal must be mutually agreed. While our LL has stated he wants to renew with a slight increase now there has not been any physical document provided.
Another follow up call to RERA and advised again no increase and original T&C to be adhered to and that new contract and increase should have been notarised and sent via registered mail by the 60 days notice.So we have written another email and awaiting LL response. Not sure where this will lead as we have a clause stating 2 months notice in writing should be given to renew or vacate. We certainly do not want to say we will renew without having the new contract etc.


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## Emanef (Dec 19, 2012)

Whats the best email address to contact RERA on? I've tried the one that displays when the rent increase calculator never works (!) but twice not had a reply. Our landlord seems ok to renew verbally but I've still not had anything in writing and was hoping to get advice via email so I can forward it on to the landlord (verbally isn't very useful, especially as his English isn't all that). 

Thanks


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## QOFE (Apr 28, 2013)

Emanef said:


> Whats the best email address to contact RERA on? I've tried the one that displays when the rent increase calculator never works (!) but twice not had a reply. Our landlord seems ok to renew verbally but I've still not had anything in writing and was hoping to get advice via email so I can forward it on to the landlord (verbally isn't very useful, especially as his English isn't all that).
> 
> Thanks


The rent calculator doesn't work with a date too far in the future. You can currently check it with a date up to 30/04/2014.


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## Emanef (Dec 19, 2012)

Doh! That's useful when a landlord has to give 90 days notice! lol

Thanks for clarifying though!

Still need an email for RERA that someone will reply to though, I have a few questions that I want putting in writing.


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## Byja (Mar 3, 2013)

I don't think there's an email to contact them, for various reasons. One of which, they have a 600 number (600-555556) and they give advice that way. Another option is to head down to Deira and their office and someone *might* help you out there.
But so far, the only normal way is to give them a call.


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## Emanef (Dec 19, 2012)

OK, so the landlord has now emailed us the new tenancy and said to return it with the cheque. They're not increasing, so that's great, but what else do we need to do officially? Do we just log on to the EJARI website and re-register? Or is it more complicated than that? ANd presumably DC and DEWA just continue as before? 

Last year it was all done for us by the relocation guy so we've not done it before!

Thanks!


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## Emanef (Dec 19, 2012)

I'm after advice on DEWA if anyone can help. Our tenancy was originally joint in my wife's company's name (it was done because of delays in her visa) as well as hers, but the DEWA was registered in just the company's name. This year the landlord has changed it to just her name, so when I've gone to register the EJARI they've said the DEWA needs to be in her name. 

I don't want to just go to DEWA with the documents if they're going to send me away for more information or letters from the employer, so what would be the best way to do it? Would it be better to just register with DEWA as a new tenancy/activation? Or could that cause interuptions to the supply? We still get and pay the bills and they are up to date. Presumably we shouldn't need a letter from her employer as they're no longer on the tenancy? 

Bureacracy out here really is quite frustrating!


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## BedouGirl (Sep 15, 2011)

Emanef said:


> I'm after advice on DEWA if anyone can help. Our tenancy was originally joint in my wife's company's name (it was done because of delays in her visa) as well as hers, but the DEWA was registered in just the company's name. This year the landlord has changed it to just her name, so when I've gone to register the EJARI they've said the DEWA needs to be in her name. I don't want to just go to DEWA with the documents if they're going to send me away for more information or letters from the employer, so what would be the best way to do it? Would it be better to just register with DEWA as a new tenancy/activation? Or could that cause interuptions to the supply? We still get and pay the bills and they are up to date. Presumably we shouldn't need a letter from her employer as they're no longer on the tenancy? Bureacracy out here really is quite frustrating!


Actually her company needs to initiate the process because the account is in their name. You'll need a stamped letter from them saying they want to close the account and to assist you in opening a new account with no break in supply. It's very simple. I've done it many times when transferring leases from our company's name to staff. You still need all the documents listed on the website, money for the new security deposit and don't forget your old security deposit receipt slip. Normally they issue one bill on the spot for you to settle, you submit your security deposit receipt and the final bill is ready a couple of days later. Once that's paid, make sure they stamp it PAID and send a copy to your landlord. You may even find you get a refund . By this time, you new account will be up and running.


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## Emanef (Dec 19, 2012)

I hope we get the refund if there is one seeing as I paid it!

Thanks BedouGirl, that's very helpful. I'll get on to it today!


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