Renewing a rental contract in the UAE isn’t as simple as signing an extension and carrying on as usual. Unlike some other countries, the Emirates has specific legal frameworks that regulate tenancy renewals, lease agreements, rent increases, notice periods, and even evictions. These laws are strictly enforced.
Understanding the finer details of lease renewals is crucial, especially when navigating unfamiliar regulations in a new real estate market. At Remitly, we know that managing your finances abroad goes beyond sending money home; being informed will help you make the best financial decisions for your future in the UAE.
Why is it important to understand the process?
The lease renewal process is typically straightforward in the UAE, but knowing what to expect can help you avoid any last-minute surprises.
Most residential tenancy agreements run for one year and usually renew automatically—unless either party gives proper notice. Landlords can propose rent increases but must follow local rent caps and regulations. For example, the Real Estate Regulatory Agency (RERA) sets these rules for rental property in Dubai.
Knowing your rights when it comes to lease renewals helps ensure that you’re prepared for negotiations, rent adjustments, or potential changes to your lease terms. Just as importantly, you’ll be able to secure the best renewal terms that fit your budget.
Overview of the legal framework for lease renewals
The UAE has a variety of legal norms that govern rent renewals. In Dubai, tenancy law is defined by Law No. 26 of 2007, while Abu Dhabi follows the stricter rules outlined in Law No. 20 of 2006.
Despite the differences, both tenants and landlords have rights when it comes to extending leases.
Rights of tenants and landlords
As a tenant, you’re entitled to peaceful enjoyment of the property. This means that your landlord can’t interfere with your use of the home as long as you’re abiding by the contract terms. If everything is in good order at the end of the lease and there are no significant damages—aside from normal wear and tear—you’re entitled to get your security deposit back.
On the flip side, landlords are entitled to timely rent payments and can take legal action if any are missed. Evictions can only occur under specific conditions, such as non-payment of rent, unauthorised subletting, or if the landlord intends to use or sell the property. However, they still need to follow set legal notice requirements.
Key legal regulations
When it comes to renewals, rent increases, and notice periods, there are clear rules in place for the UAE real estate sector:
- Notice for changes: If either the landlord or tenant wishes to change any lease terms or end the contract, they must provide a 90-day written notice before the lease expires.
- Automatic renewal: If no notice is given, the lease generally renews under the same terms.
- Rent increases: Any rent hike must be in line with the relevant regulations in your emirate, such as the RERA Rent Index in Dubai. Landlords should also provide 90 days’ notice of their intention to increase rent.
Understanding your rights and responsibilities will help you navigate your lease renewal smoothly and avoid unnecessary disputes with your landlord.
The tenancy contract renewal process
Every emirate has structured systems in place to regulate tenancy contracts and ensure a smooth renewal process.
Steps to renew a tenancy contract in the UAE
While the process will differ slightly depending on your region, there are some general steps that you’ll follow to renew your tenancy agreement:
-
- Review your current contract: Check for any clauses related to renewal, rent adjustments, or required notice periods. This will help you understand your rights and prepare for negotiations.
- Communicate with your landlord: Reach out to your landlord at least 90 days before your lease expires to find out whether they want to renew your tenancy. If they confirm, start discussing any changes you might want to make to the agreement, like rent adjustments.
- Prepare your paperwork: You’ll typically need your Emirates ID, passport copy, existing tenancy contract, and proof of rent payments to renew your lease. Your landlord may also request updated documents or post-dated cheques.
- Review and sign the new contract: When you’ve reached an agreement on the lease terms and have gathered the necessary documentation, give the new contract a final read-through before signing it.
- Register the renewed lease: Depending on your emirate, you must update your tenancy contract with the appropriate authority.
Remember to save copies of your signed contract, receipts, and any written agreements. These can be a big help if you happen to get into a dispute with your landlord further down the line.
Special considerations for Dubai and Abu Dhabi
In Dubai, all rental agreements must be registered through the Ejari system. It was introduced by the Dubai Land Department (DLD) in 2007 to formalise contracts and prevent disputes. Similarly, Abu Dhabi uses Tawtheeq, launched in 2011 by the Abu Dhabi Municipality, to standardise rental agreements.
In other emirates, like Sharjah, the lease renewal and registration process is usually handled by the local municipality.
Once you’ve registered the new lease, you can update your utility accounts to ensure your services continue uninterrupted. Depending on your emirate, you’ll do this with various authorities, namely:
- Dubai Electricity and Water Authority (DEWA) in Dubai.
- Abu Dhabi Distribution Company (ADDC) in Abu Dhabi.
- Sharjah Electricity, Water, and Gas Authority (SEWA) in Sharjah.
- Etihad Water and Electricity (Etihad WE) in the Northern Emirates, including Ajman, Fujairah, Ras Al Khaimah, and Umm Al Quwain.
Essential documents for lease renewal
You’ll need a few key documents to verify your identity and the legitimacy of the lease before starting the tenancy renewal process. These typically include:
- Your current tenancy agreement, signed by you and your landlord.
- A copy of the current tenancy agreement that was submitted to the agency in charge of rental housing in your emirate.
- A copy of your Emirates ID.
- Copies of your valid passport and visa.
- A copy of your landlord’s passport or Emirates ID.
- The property title deed.
- A recent utility bill showing the property address.
Having everything in order from the start will make the process hassle-free and increase your chances of approval.
Document submission tips
Before making your submission, ensure that each document is clear, legible, and up to date. Double-check that details like names and contract dates match across all paperwork, as any discrepancies may result in rejection.
Once submitted, the relevant authority will review your documentation to ensure compliance with local regulations. If any issues arise, they may request additional documents or corrections before approving the renewal.
Things to consider before renewing your lease
Before letting your lease roll over automatically, it’s worth taking a step back to assess your options. Rental markets fluctuate, and you may be able to negotiate better terms or explore alternatives that better suit your needs. A little planning now could help you secure a more cost-effective or flexible arrangement for the year ahead. So, consider the following factors:
The terms of your current and new lease
Lease renewals aren’t always a simple continuation of your existing agreement. Sometimes, landlords adjust the terms—and not always in your favour.
Before signing anything, carefully compare your current lease with the new one to spot any changes that could impact you. Look out for higher rent, additional fees, or stricter clauses about maintenance. For instance, your previous lease might state that the landlord was responsible for AC servicing, but the new contract shifts this expense to you. That could mean hundreds of dirhams in additional costs each year.
In the event that you do notice concerning changes, ask for clarification and don’t be afraid to negotiate. A lease should be fair to both parties and if the new terms feel too restrictive or financially burdensome, it may be worth considering a move.
Market rates relative to your rent increase
Rent will likely be one of your biggest expenses and can quickly drive up your cost of living in the UAE. So, keep an eye on how much it increases.
While you should expect to pay a little more each year, increases should still be fair and in line with market rates. Also, landlords can’t raise rent arbitrarily—any increase must comply with the rental regulations set by the relevant housing authority in your emirate.
Before renewing your tenancy, it’s also good to check current market rates for similar properties in your area. If your landlord is proposing an increase that puts your rental out of step with comparable properties in your area, you have grounds to negotiate.
For example, say you’re renting a two-bedroom apartment in Dubai Marina for 80,000 AED. When your renewal date comes around, your landlord says they want 90,000 AED, but nearby listings show similar units for 85,000 AED. That would be a sign to negotiate with your landlord.
The condition of the property
It’s a good idea to take a close look at the condition of your home before jumping into a new lease. If you’ve been dealing with persistent maintenance issues and your landlord has been slow to respond, it may be time to reconsider whether staying is worth it.
Imagine you’ve spent months reporting a water leak that keeps causing damp patches on your walls. If your landlord hasn’t taken action despite multiple requests, it indicates they may not prioritise property upkeep. Over time, such neglect can lead to bigger problems, making your living situation uncomfortable or even unsafe.
Before renewing, discuss any necessary repairs with your landlord and get all agreed-upon commitments in writing. If they’re unwilling to address ongoing issues, you might be better off exploring other rental options where maintenance is handled more proactively.
Negotiation tips for lease renewals
If you’re happy with your current place but not the renewal terms, negotiating can help you secure a better deal and even free up some money for investing. Many landlords are open to discussion, especially with reliable tenants who pay on time and take good care of the property.
Here are a few ways to strengthen your position:
- Do your research: Check market rates for similar properties in your area. If your landlord’s proposed rent increase is above average, use this data to negotiate.
- Highlight your value as a tenant: If you’ve been a responsible tenant, paying rent on time and maintaining the property, mention it as a reason to keep favourable terms.
- Offer something in return: If you can commit to a longer lease term, such as two years instead of one, your landlord may agree to keep rent stable.
- Negotiate beyond rent: If the price is non-negotiable, consider requesting additional benefits, like free utilities or flexible payment terms.
Even small adjustments can make a big difference in your overall costs. A well-informed and respectful discussion can help both you and your landlord reach a win-win agreement.
What to do if a landlord refuses to renew or raises your rent unfairly
Standing up for yourself as a tenant—especially as an immigrant—can feel daunting. But you have rights, and there are steps you can take to protect yourself in the UAE.
If your landlord refuses to renew your lease without valid grounds or proposes an unfair rent increase, start by referring to Emirati tenancy laws. In Dubai, for instance, rent hikes must follow the RERA Rental Laws. They require landlords to provide 90 days’ notice before any increase and define legal rent hike limits, providing a basis for negotiation.
If needed, you can escalate the complaint to a rental dispute settlement centre in your emirate. This may involve some fees, but it ensures that your case is handled fairly under UAE law. Taking action early can help you secure a fair outcome and avoid unnecessary stress.
Thrive in the UAE rental market
Renewing a lease in the UAE isn’t just about signing another year’s contract—it’s an opportunity to reassess your living situation, negotiate better lease terms, and ensure you’re getting a fair deal.
Understanding your rights as a tenant, from rent regulations to notice periods, can help you make informed decisions and avoid unnecessary costs or disputes. A little preparation ahead of time can help you secure a smoother, more cost-effective tenancy for the year ahead.
FAQs
How long is the notice period for rent renewal in Dubai?
Both landlords and tenants must provide at least 90 days’ written notice before the lease expiry date if they intend to change any terms, such as rent adjustments or non-renewal. Without this notice, the lease automatically renews under the same conditions as the previous contract.
Does Ejari renew automatically?
Ejari does not renew automatically. Tenants or landlords must manually renew the Ejari registration when renewing a tenancy contract. This can be done online through the Dubai REST app or at authorised service centres.
How long can a tenant stay after the lease expires in Dubai?
If a tenant remains in the property after the lease expires without objection from the landlord, the tenancy is considered to be renewed under the same terms for a similar period or one year, whichever is shorter.
How can I renew my tenancy contract in the UAE?
To renew your tenancy contract in the UAE, you need to gather your documentation, including your current and new lease, your identity and visa documents, your landlord’s identity documents, and the property title. Then, submit these to the rental housing authority in your emirate.