Dubai: If you are on the hunt for a new home and have found an apartment or villa that fits your budget, can you move out of your current premises immediately?
While your rent can be a big part of your monthly budget and getting a bargain is tempting, it is important to plan out your move to ensure you do not end up paying a heavy penalty by violating your lease agreement.
When you sign a lease for a year with your landlord, you are bound by the agreement and need to follow the rental rules in the Emirate if you wish to terminate an agreement early.
In Dubai, Rental Law No. 26 of 2007 regulates the relationship between landlords and tenants in the emirate of Dubai. As per Article 7 of this law, neither party can terminate the contract before the end of the tenancy period, unless the two agree to the early termination or due to any legal reasons, in accordance with the provisions of the law.
How much may I need to pay?
As reported by Gulf News earlier, your rental contract will have the details listed on the notice period you need to serve if you wish to not renew the contract once it ends. The contract also mentions the penalty you need to pay if you do not abide by this notice period. This may be the amount of rent you pay for two or three months. So even if you have completed your lease period, not notifying your landlord that you will not renew the lease for another term can mean you end up paying extra.
“Article 14 of Dubai’s rental law requires either party to amend the terms of the lease by notifying the other party not less than 90 days prior to the contract’s expiry date, unless a different term has been agreed by both parties,” Aditi Gandhi, a Dubai-based lawyer, said
If you break your lease early, you will need to pay at least a few months’ rent, depending on the clause in your tenancy contract. Contracts usually have an exit or early termination clause. According to Reda Hegazy, senior arbitrator at Al Suwaidi and Company, if such a clause does not exist, the landlord could demand compensation for ending the tenancy contract early.
“In most cases, contracts state that tenants need to give landlords a period of 90 days as notice before terminating a contract,” he said.
He also advised tenants to always speak with their landlord to ensure the contract ends amicably.