Dubai rent renewal: What can your landlord actually charge you?

Dubai: Renewing a tenancy in Dubai can come with questions over rent increases, agent charges and registration fees. But tenants are not required to accept every fee a landlord or property manager asks for.

Here is what landlords and agents can  and cannot charge when you renew your Dubai rental contract.

Any rent increase at renewal is governed by Dubai Decree No. 43 of 2013 and the applicable rental index. Depending on how far your current rent is below the average market rental rate, the permitted increase ranges from zero per cent to a maximum of 20 per cent.

The landlord must also give the tenant at least 90 days’ written notice of any proposed change to the rent or other terms of the tenancy contract before it expires. The Rental Disputes Center confirms that either party seeking to amend the terms must provide this notice.

No, the Dubai Rental Disputes Center, the judicial arm of the Dubai Land Department, confirmed in 2020 that a landlord or their representative, including a real estate management company or leasing office, cannot charge a fee when renewing a tenancy contract.

The RDC has also stated that landlords and their representatives cannot insert a special clause in the tenancy contract imposing such a renewal fee. This means a landlord or property manager cannot simply add an administrative, lease-renewal or processing fee to your rent because you are renewing.

A tenant should check the tenancy contract and any separate agreement with the agent carefully.

If an agent is specifically hired to provide a service, such as negotiating the renewal or preparing paperwork, a separate service charge may depend on the terms of the agreement with the party paying for that service. However, a landlord or property manager cannot simply impose an arbitrary renewal charge on a tenant as a condition of renewing the lease.

Commission or setup fees should not be confused with the landlord's rent. Tenants should check what was agreed when the tenancy was originally signed and whether any separate fee was clearly provided for.

Ejari registration is separate from any landlord or agent renewal fee.

The Dubai Land Department (DLD) currently lists the cost of registering a tenancy contract through the Dubai REST app or DLD website at Dh177.75, including the applicable service partner, knowledge and innovation fees. At a Real Estate Services Trustee Centre, the listed total is Dh220.

These are official registration costs, not a landlord's lease-renewal fee.

Tenants should therefore check their tenancy contract, confirm any proposed rent increase against the applicable RERA rental index and ask for a breakdown of any additional charges before paying.