Dubai: No 90-day notice, can I ignore landlord’s rent increase demand?
With contract renewal due, Gulf News reader asks how much of a rent increase to expect
Dubai: Whenever your tenancy contract is due for renewal, it naturally leads to some questions in your mind – should you move or face a potential rent hike? In Dubai, the relationship between landlords and tenants is regulated by the Dubai Tenancy Law - Law No. 26 of 2007, which guarantees the rights of both parties and provides them with legal avenues to raise any issues and concerns they may have.
Whenever there are any changes to your upcoming rental contract, there are clauses within the law, that require either party – the landlord or tenant – to inform the other of it at least 90 days before renewal. But what happens if this deadline is missed? A Gulf News reader wrote in asking this question.
He said: “I have some questions regarding my rent renewal as my contract for a studio apartment is ending in June. I sent an email reminder to my landlord and agent in March, as I had not received any electronic or written communication at least 90 days before the end of the contract. Am I eligible to automatically renew at the same rental price and according to the same terms and conditions as the previous year? As the agent says that this rule is not applicable now. I have been following up with the landlord and agent until today and there has been no information regarding the rental discussion. Can the landlord or agent increase the rent value by more than the rental index value? Also, how much is the agent or middleman supposed to charge for administrative fees every year? I have been paying Dh1,000 and it is mentioned in the contract.”
Gulf News raised the query with Mohamed Elmasry, associate with Al Suwaidi and company, advocates and legal consultants, who spoke about a tenant’s rights as per the Dubai Rental Law - Law No. 26 of 2007 Regulating Relations between the landlord and tenant in the Emirate of Dubai.
“In regard to inquiries about lease renewals and permissible rent increases under the Dubai Rental Law, it is important to refer to Article 6 of the said law. The Article stipulates: ‘If the tenant continues to occupy the property despite the expiry of the lease contract without any objection from the landlord, the contract shall be renewed for a similar period or for one year, whichever is less, with the same remaining terms of the contract.’ This provision enables tenants to state a legal right to renew the tenancy under identical terms if the landlord fails to object to the continuation post-contract expiry,” he said.
Elmasry added that in such cases, tenants also have a right to raise a legal complaint, if the landlord refuses to continue with the contract.
“The Article suggests that tenants may seek legal action to enforce renewal if the landlord expressly rejects continuation under existing terms,” he said.
Absence of such notice renders any proposed rent increase unenforceable for that renewal period.
Rent increase limits
Article 14 of the law also stipulates that if there are any amendments to the lease contract, the landlord must inform the tenant ahead of time.
“Landlords must issue a written notice of intent to raise rent at least 90 days before the expiration of the current lease. Absence of such notice renders any proposed rent increase unenforceable for that renewal period. Should appropriate notice be provided, any increase in rent must strictly adhere to the limits set by the rental index. Any deviation from these procedural and substantive requirements can invalidate the proposed adjustment, thereby protecting tenant interests against arbitrary and unnotified rent escalations,” he said.
Commenting on the rules regarding the administrative fee, he said: “The administrative fee is to be a one time payment, unless expressly stipulated in the contract as an annual obligation. Specifically, while the contract may state that the tenant is liable for an administrative fee of Dh1,000, it may not specify that this fee recurs annually.”