Dubai rent contracts: What tenants can do if not told of renewal hikes in time

Dubai: Are you a tenant in Dubai with an upcoming rental renewal? Have you heard from the landlord within the last 90 days that there would be a rent increase?

Many tenants in Dubai in such situations are saying they have not had any such feedback from landlords – despite the Dubai Land Department newly updated rules expressly stating that this has to be done. Within 90 days of the lease contract’s renewal. This was done with the firm intent of stopping landlords hitting tenants with sudden – and above market average – rental demands. 

“My renewal was up in late April and I found out about a 5% hike only after I turned up at the landlord’s office for renewal,” said a resident at one of the upscale communities in the city. “There are other tenants in a similar situation with 5% hikes on renewal – but were never told about it within those 90-day period.

“The most unfortunate part is that I renewed immediately, but the landlord registered a case with the Dubai Rental Disputes Court for being late in signing up.”

This is not an isolated situation in that residential community or that set of tenants. There are others who have been raising the matter about landlords not giving them sufficient notice about a rent increase during renewals.

For such tenants, there are plenty of options available to press their claims.

The Dubai real estate regulator’s updated rules issued in February are clear enough.

So, the Dubai authorities have looked to cover all possible angles to mitigate any chance of a dispute between tenants and landlords.

But to make all this happen, landlords still need to get one basic right – inform their tenant within those 90 days about whether there will be a hike on renewal or not. And what that hike might be. Or at least point the tenant to the new Dubai Rent Index to show what the likely rent increase would be.

Once that’s done, it’s up to the tenants to decide whether to renew or not. (As a last resort, either side can approach the Dubai Rental Disputes Center for a final judgement.)

According to one real estate agent who specializes in residential leasing, “Most landlords now as a rule inform tenants about upcoming renewals and what their rent increases would be. Well within those 90 days.

“If any tenant finds they have been wronged, take the matter to the Dubai Land Department or rental court. The rules are clear.”

But many tenants are unwilling to rock the boat and initiate a dispute with their landlords. Especially if rental increase demands are in the 5%-7% range and where annual service fees have been kept in check for the better part of the last 3 years.

Based on what the market has been saying, in the first 5 months, residential rental renewals continue to trump instances of where the tenants decided to move out and seek a new place. It will take many mre apartment buildings to be completed before available supply is anywhere near demand. And then would be the time for rental gains to really slow down city-wide. (In 2024, 900,000 lease contracts were registered in Dubai, which was an 8% gain on 2023 numbers.)

By August and September, much of the changes what the Dubai Smart Rent Index brought about will be clearer. (It was in January last that the new real-time index went live.)

So, if some landlords did not inform in time about a rent increase, tenants have the platforms to take up this matter.