Important Tips for Renewing Tenancy Contract in the UAE
Is your tenancy agreement ending soon? Before you renew your tenancy contract, assessing your situation and determining whether it is still the right home for you is a good idea. Deciding whether to stay or move to a new home is a significant decision. So, to help you make the right choice, we’ve compiled a list of things to consider before renewing tenancy contract in the UAE.
Things to consider before renewing rental Contract in the UAE
When renewing the tenancy contract for your rental properties in Dubai UAE, here’s what you need to remember.
YOUR FUTURE PLANS
Before signing the renewed contract, it’s best to consider your plans and determine whether the property continues to fit your requirements. You might want to reconsider your accommodation if you wish to start a family, switch jobs, or even move back to your home country.
If the situation seems unpredictable, you can look at alternative housing options in Dubai’s thriving rental market. For instance, if you’re looking to move out of the country soon, you could switch to a short-term rental instead of the traditional long-term annual lease. You can easily find apartments in Dubai for monthly rent that offer greater flexibility.
A family meeting about the future should be part of your pre-tenancy contract renewal checklist.
YOUR BUDGET
What you can afford is perhaps the most obvious factor when renewing a lease agreement. But it is easy to overlook the budget sometimes. The annual rent takes a big chunk from your pay cheque, so it’s essential to consider your budget before renewing your Dubai tenancy contract. If you want to tighten your budget in the coming months, move to a more affordable home in the same neighbourhood instead.
On the other hand, it’s a good idea to reassess the rental value of your current home. Visit Bayut’s market trends section, which provides key insights about the rental property market. It’s best to keep track of the price trends to negotiate better with your landlord before your rental contract renewal.
Remember that under Dubai tenancy contract renewal rules, your landlord must give you at least a 90-day notice before the contract expiry for changing the terms, including the rental amount. If there is no tenancy renewal agreement, notice of non-renewal of tenancy contract is mandatory and should be notified at least 60-days prior to contract expiry.
YOUR LEASE TERMS
Before renewing your tenancy contract in Dubai, make sure you know the changes to your lease terms. This could be anything from introducing parking fees to changes in building rules, such as pets not being allowed.
It’s generally advisable to ask your landlord directly as the 90-day notice period approaches. To avoid unpleasant situations later, make sure the new lease terms suit your requirements before the tenancy contract renewal.
Also, consider whether you can negotiate additional amenities in your new lease terms when it’s time for your rental contract renewal. This includes access to shared facilities such as a gym and pool, additional parking spaces or regular maintenance.
EVALUATE RENT APPRAISAL
Next on our tenancy contract renewal checklist is rent appraisal. It’s common for landlords to increase the rent during the rental agreement renewal process. Read our guide to using the RERA Rental Increase Calculator to see if the proposed increase is in line with RERA calculations. Remember, landlords have to adhere to the RERA Price Index.
If a rent increase is inevitable, see if you can avoid this by agreeing to a longer tenancy term. If you’ve had a good relationship with your landlord, do ask if you can get fee reductions or waivers when you renew the tenancy contract in Dubai. A good relationship between tenant and landlord can solve many potential issues, including tenancy extension agreement.
REPAIR AND MAINTENANCE
It would be best if you also discussed the need for any repair and maintenance work with your landlord. The landlord can refuse contract renewal if the place needs a major renovation and maintenance. The landlord may ask the tenant for compensation. However, to do so, a technical report issued by Dubai Municipality has to be submitted.
EJARI REGISTRATION
Wondering how to renew a tenancy contract? When a tenancy agreement is renewed, you must register the new contract with Ejari. The landlord, tenant, or property manager can register the renewed contract with EJARI. Renewing your tenancy contract with EJARI is essential to avoid inconvenience or conflicts later.
Check out the tenancy contract in the Dubai guide for more information on tenants and landlord rights and obligations.
LIFESTYLE MATTERS
Before your tenancy contract renewal in Dubai, reflect on how your time in your current home has been so far. What may have seemed like the perfect home when you first signed the lease may not be the most suitable in the current scenario.
While minor inconveniences are usual, reconsider your rental contract renewal if you’re struggling with reaching your workplace, lack of amenities or noisy surroundings.
You can move to another neighbourhood that better suits your lifestyle. For example, flats for rent in Dubai Sports City are ideal for sports enthusiasts, with gyms, cricket and football grounds nearby. On the other hand, apartments for rent in Downtown Dubai appeal to those who enjoy being close to trendy restaurants and attractions.
Your home is where you should feel most comfortable, and if that isn’t the case anymore, it’s something to consider when renewing your lease agreement in Dubai. Take necessary steps to maximise your security deposit refund. There are a few things that you have to keep in mind if you opt against lease renewal agreement.
CONDUCT RESEARCH
It’s also a good idea to check out other properties on the market before your tenancy contract renewal. Who knows, you might be able to find a better property at the same rate or a similar place without having to pay extra.
Changing your home can also result in a shorter commute to work or your child’s school, more storage space and quicker access to shopping malls or restaurants. Some residents also opt for upgrading from an apartment to a villa to enjoy more space and privacy.
You can browse our extensive listings of rental properties in Dubai and discover sea-view apartments, family villas and charming townhouses that fall within your budget.
However, do factor in the extra money you have to spend on moving, furnishing and setting up your new home if you decide against renewing your tenancy contract. While you may find a home within a similar budget, these additional costs can make the entire moving process expensive.
ARE YOU READY TO INVEST?
If you’ve been dreaming about the exciting transition from being a tenant to a property owner in Dubai, you’re in luck. With high ROI and affordable prices, investing in Dubai’s real estate market is ideal for securing your future.
Just educate yourself on the buying property in Dubai advice to determine whether homeownership is the right choice for you.
Tenancy contracts typically last for one year in the UAE. We recommend taking some time to assess your financial situation and lifestyle to make the right decision when the time comes to renew your tenancy contract in Dubai.
Stay tuned to MyBayut for more helpful advice on renting a home in Dubai!
Recommended Posts
