UAE Property: ‘Should I inform my landlord if I don’t intend to renew my lease?’

Question: My tenancy contract is up for renewal in December. I received an email from my landlord that my annual rent would be increased . At this stage, I don’t know by what percentage the rent will be increased . After I come to know the new rent, can I inform the landlord of my decision to not renew the lease if I find it unaffordable? Is there a specific time frame by which a tenant should inform the landlord if they do not wish to renew? If it’s too late, will the tenant be asked to pay a fine? How much will that be? ND, Dubai Answer: Firstly, any changes to a rental contract must be communicated in writing (email is fine). Most importantly, the communication of the changes must be within 90 days of the renewal date and in case of changes to any rent increase, it has to be in line with what the Dubai Land Department rental index states is allowed. If your landlord has missed this window, legally speaking, he/she cannot make any changes, including the increase in rent, even if the calculator states an increase is allowed. When it comes to informing the landlord that you do not wish to renew, again there are some legalities. Technically speaking, it is advisable to let the landlord know well in advance should a tenant not wish to renew. Having said this, Law 33 of 2008 amended some parts of the landlord and tenant law (Law 26 of 2007) and one of the alterations was the need to inform the landlord at all. This is a debatable change because technically speaking a rental contract does have a start and end date, so if you don’t wish to renew, legally you do not need to inform your landlord. But in reality, this doesn’t work, so my advice is to always let your landlord know well in advance if you do not wish to renew. Q: My daughter received an eviction notice last October partway through her tenancy contract, which ran until March this year. In March, she renewed her contract for a further seven months, so it will end this month, exactly 12 months from the date on the eviction notice. The notice was served by a notary. Is this the correct eviction procedure ? PB, Dubai A: In the past, the 12-month eviction notices were served upon expiry of the existing tenancy agreement, thus giving one more year to the tenant before having to vacate. In recent years, the judges at the Rent Dispute Settlement Committee have allowed these 12-month notices to be served at any time, so it would appear that in your daughter’s case, the eviction notice was served correctly. Q: I have reached an agreement on lease renewal with my landlord after filing an offer and deposit case with the DLD. However, I noticed a new clause in the new contract, which states: “The tenancy contract is non-renewable . Only written notice of 90 days is required from both parties to make a new contract as per market rate or to vacate the apartment. No legal notice needs to be served by the landlord. In case of legal proceedings by the tenant, all the expenditures by the landlord will be the tenant’s responsibility.” Can the landlord use this clause to amend or ignore the Real Estate Regulatory Authority’s rules and regulations once the contract is signed? CL, Dubai A: A tenancy contract (as per the law) is always renewable unless otherwise agreed. So, if you go on to sign with this clause added and you no longer or had ever agreed to its inclusion, you will have to contest it at a later stage or better do it now. Ninety days are required for any changes to the existing contract. In the case of eviction, your landlord would need to inform you through notary public or registered mail about the reason for the eviction. It is only up to the judge of the day at the rent committee (should you file a case) to decide who is responsible for any legal costs. Mario Volpi is head of brokerage at Novvi Properties and has worked in the property sector for 40 years in London and Dubai. The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario@novviproperties.com