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How to renew your tenancy contract in Dubai in 2025

How to renew your tenancy contract in Dubai in 2025

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Renewing a tenancy contract in Dubai involves updating existing contractual arrangements for the upcoming rental period. While the core structure remains consistent, several elements typically undergo modification:

  • Lease Dates: The renewed contract automatically commences on the day following the expiration of the previous agreement. For example, if your current contract ends on October 31, 2025, the renewal period begins November 1, 2025, and continues for one year unless otherwise specified .
  • Rent Amount: This is the most frequently adjusted element during renewal. Landlords may propose rent increases following Dubai’s RERA Rental Index Calculator guidelines. According to 2025 regulations, increases are only permitted if the current rent is significantly below market rates for similar properties in the same area. The calculator specifies permissible increase percentages based on how much the existing rent deviates from market averages .
  • Payment Terms: While often remaining unchanged, parties may negotiate revised payment schedules. Some landlords now accept quarterly or monthly installments instead of the traditional single annual payment to accommodate tenant cash flow needs. Such changes must be explicitly documented in the renewed contract .
  • Security Deposit: Typically remains unchanged at the standard amount (usually 5% of annual rent for unfurnished properties, 10% for furnished). However, landlords may legally request additional deposit amounts if:
  • The tenant acquires pets that may cause property damage
  • There has been previous property damage requiring compensation
  • The tenant requests major upgrades or modifications to the property
  • Contractual Clauses: Renewal presents an opportunity to remove clauses relevant only to initial tenancies (such as initial painting or deep cleaning provisions) and add new ones addressing emerging concerns like smart home infrastructure usage or subscription services for building amenities .

2 Step-by-Step Guide to Tenancy Contract Renewal in Dubai

2.1 Step 1: Confirm Renewal Intent (90-Day Notice)

The renewal process formally begins with the mandatory 90-day notice before contract expiration. According to Dubai’s Real Estate Regulatory Agency (RERA) regulations, both landlords and tenants must communicate their intentions regarding renewal at least 90 days before the current contract expires .

  • Landlord’s Responsibility: Typically initiates the process by sending formal written notice (preferably via email or registered mail) indicating whether they wish to renew the contract or request the tenant to vacate. If renewing, this notice should include any proposed changes to terms, especially rent increases.
  • Tenant’s Responsibility: If the landlord doesn’t initiate communication, tenants should proactively express their intention to renew. If vacating, tenants must provide 90-day written notice as stipulated in most standard contracts .

2.2 Step 2: Negotiate and Agree on Renewal Terms

Once both parties express interest in renewal, negotiation begins:

  • Rent Adjustment Discussions: Landlords must justify any proposed increase using the RERA Rental Index Calculator (available online). Tenants should verify the proposed increase against this official calculator .
  • If the increase exceeds permissible limits, tenants can politely present their findings to the landlord
  • If the landlord insists on an unlawful increase, tenants may file a case with the Rental Dispute Center
  • Terms Negotiation: Both parties can discuss modifications to payment schedules, maintenance responsibilities, or additional clauses. All agreed changes must be documented in writing before proceeding to contract drafting .

2.3 Step 3: Prepare Renewal Documents

With terms agreed, preparation of legal documents begins:

  • Unified Tenancy Contract: This standard Dubai Land Department (DLD) document must be updated with:
  • New lease dates (start and end dates for the renewal period)
  • Updated rental amount and payment schedule
  • Property details (identical to previous contract)
  • Party information (check for changes in contact details)
  • Addendum Preparation: If additional terms beyond the standard contract are needed, an addendum must be created. This might include:
  • Special maintenance arrangements
  • Pet policies
  • Parking space allocations
  • Renewable energy installations

Table: Options for Preparing Renewal Documents

MethodProcessBest For
Manual UpdateEditing previous contract in Word/PDFThose with simple renewals and no term changes
DLD TemplateDownloading latest template from DLD portalThose needing only basic contract without addendums
Digital PlatformsUsing DLD app or similar servicesThose wanting lawyer-reviewed documents with addendums

2.4 Step 4: Sign the Renewal Contract

The updated contract requires formal execution:

  • Signing Methods:
  • In-Person Signing: Traditional method where both parties meet, often facilitated by real estate agents or property management companies
  • Digital Signing: Increasingly popular method using platforms like Habi.ae that offer legally binding electronic signatures, saving time and effort
  • Witness Requirements: While not always mandatory, having witnesses or agent representation during signing can prevent future disputes about contract authenticity .

2.5 Step 5: Register with Ejari System

The final and mandatory step is Ejari registration, which legally validates the renewed contract:

  • What is Ejari: Ejari (Arabic for “my rent”) is Dubai’s official system for registering tenancy contracts, managed by the Dubai Land Department (DLD). It’s mandatory for all rental agreements and serves as proof of tenancy for government services .
  • Registration Methods:
  • Online Registration: Through the Dubai REST app or DLD website (requires scanned documents)
  • Trustee Centers: Visiting authorized centers like Al Tabu Real Estate Trustee Services
  • Typing Centers: Government-authorized typing centers throughout Dubai
  • Digital Platforms: Through services like Habi.ae that offer integrated Ejari registration

Table: Ejari Renewal Options and Costs (2025)

MethodCost (AED)Processing TimeRequired Documents
Online (DLD Portal/REST App)120 (100 registration + 10 knowledge + 10 innovation fees)24-48 hoursTitle deed, passport/Emirates ID, renewed contract, previous Ejari
Trustee CentersApproximately 215 (120 service fee + 95 typing fee + VAT)Same dayOriginal documents plus copies
Through DLD299 (includes contract creation and Ejari)24-48 hoursDigital copies of documents
  • Required Documents:
  • Original renewed tenancy contract (signed by both parties)
  • Tenant’s passport, UAE visa, and Emirates ID copies
  • Landlord’s passport copy and title deed of the property
  • Recent DEWA bill (not older than 2 months)
  • Previous Ejari certificate

3 Important Considerations for Tenancy Renewal in Dubai

3.1 Legal Framework and Dispute Resolution

Understanding Dubai’s rental laws is essential for smooth renewal:

  • Rental Increase Caps: The RERA Rental Index Calculator legally limits how much landlords can increase rent. For 2025, the percentage allowed depends on how much the current rent deviates from market averages:
  • 5% increase if current rent is 11-20% below market rate
  • 10% increase if 21-30% below market rate
  • 15% increase if 31-40% below market rate
  • 20% increase if more than 40% below market rate
  • Dispute Resolution: If disagreements arise during renewal that cannot be resolved privately, either party can approach the Rental Dispute Settlement Center (RDC). The process typically involves:
  • Filing a case with required documents (including existing contract and correspondence)
  • Mediation sessions to attempt amicable resolution
  • Formal judgment if mediation fails

3.2 Fees and Financial Considerations

  • Ejari Fees: As shown in the table above, costs vary by registration method but typically range from AED 120-300 .
  • Agent Fees: While illegal for agents to charge renewal fees (unless providing substantial services), some still attempt to collect. Tenants and landlords should know that according to RERA regulations, agents can only charge fees for new contracts, not renewals .

3.3 Common Pitfalls to Avoid

  • Missing the 90-Day Deadline: Failing to provide timely notice can result in automatic non-renewal or difficulty negotiating terms .
  • Incomplete Ejari Documentation: Missing documents cause significant delays. Double-check requirements before submission .
  • Verbal Agreements: Always document all agreed changes in writing. Verbal arrangements are not legally enforceable in tenancy matters .
  • Ignoring Market Research: Tenants should research comparable rents in their area before negotiating, while landlords should verify proposed increases through the official RERA calculator .

5 Conclusion

Renewing your tenancy contract in Dubai need not be a complicated process when you understand the steps involved and your rights under Dubai’s rental laws. The key requirements include:

  1. Initiating communication well before the 90-day deadline prior to contract expiration
  2. Negotiating in good faith within the boundaries set by the RERA Rental Index Calculator
  3. Properly documenting all agreed changes in the renewed contract
  4. Completing Ejari registration promptly to validate the renewed agreement

For 2025, Dubai continues to digitize and streamline property rental processes, with platforms like DLD offering efficient alternatives to traditional renewal methods. Whether you choose to renew through digital platforms or traditional methods, understanding your rights and responsibilities ensures a smooth renewal process that protects both landlords and tenants.

Remember that maintaining a positive landlord-tenant relationship through transparent communication and adherence to legal requirements is the foundation of successful tenancy renewals in Dubai’s dynamic rental market.

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