Tenancy Agreement Renewal in Dubai: Key Considerations Before You Renew
Is your tenancy agreement in Dubai coming to an end? Before rushing to renew your tenancy contract, it's essential to assess your current situation and evaluate whether your current residence still meets your needs. Renewing a tenancy agreement is a significant decision, and understanding the factors to consider can help you make an informed choice.
You must know some important aspects to contemplate before renewing your tenancy agreement in Dubai.
Your Future Plans
Before committing to another year in the same property, it's crucial to consider your future plans. Are you planning to start a family, change jobs, or even move back to your home country? Such life changes can greatly impact your housing needs.
If your situation appears uncertain, consider exploring short-term rentals in Dubai for greater flexibility. This way, you can adapt to changing circumstances more easily.
Your Budget
Your budget is a fundamental factor to consider when renewing a lease agreement. Calculate how the annual rent fits into your financial plan. If you anticipate tightening your budget in the coming months, you may want to explore more affordable housing options in the same neighborhood.
Keep in mind that you can negotiate rental terms with your landlord before renewing your tenancy agreement, but you must provide a 90-day notice period as per Dubai's tenancy contract renewal rules.
Lease Terms
Before renewing your tenancy contract, carefully review the lease terms. Be aware of any changes, such as the introduction of parking fees or alterations in building rules, which may affect your living experience. It's advisable to discuss these changes with your landlord well in advance to ensure the new terms align with your needs and expectations. Additionally, consider negotiating for additional amenities, such as access to shared facilities or maintenance services.
Rent Appraisal
It's common for landlords to increase rent during the renewal process. Familiarize yourself with the RERA (Real Estate Regulatory Agency) rental increase calculator to verify if the proposed increase adheres to RERA's guidelines. If a rent increase is inevitable, discuss the possibility of a longer tenancy term or inquire about fee reductions or waivers if you have maintained a good relationship with your landlord.
Repair and Maintenance
Discuss any required repair and maintenance work with your landlord before renewing the contract. In some cases, landlords may refuse contract renewal if substantial renovations are needed. A technical report from Dubai Municipality may be required for such cases. Ensure that these matters are resolved before proceeding with the renewal.
Registration with EJARI
When renewing a tenancy agreement in Dubai, it's essential to register the new contract with EJARI. While the responsibility often falls on the landlord or real estate agent, tenants may sometimes be involved in the process. Registering your renewed contract with EJARI helps avoid future inconveniences or disputes.
Lifestyle Matters
Reflect on your experience in your current home before renewing your tenancy contract. Minor inconveniences are common, but if you're struggling with factors like commuting, amenities, or noisy surroundings, it may be time to consider a change. Choose a neighborhood that better aligns with your lifestyle and preferences.
Conduct Research
Before renewing your tenancy contract, explore other properties on the market. You might find a better property at a similar rate or one with improved features. Consider factors like commute time, storage space, and proximity to amenities. While moving may involve additional costs, it could result in a more comfortable living situation.
Are You Ready to Invest?
If you've been contemplating the transition from being a tenant to a property owner in Dubai, this could be an ideal time. Dubai's real estate market offers high ROI and affordable prices. However, it's essential to educate yourself on the pros and cons of homeownership to make an informed decision.
Wrap up
Renewing your tenancy contract in Dubai is a significant decision that requires careful consideration of various factors. Beyond budgetary concerns, evaluating your future plans, lifestyle preferences, and lease terms can help you make the right choice. Remember to explore the market, consider your readiness for property ownership, and stay informed about your rights as a tenant. By taking these steps, you can ensure that your next year in Dubai is a comfortable and hassle-free one.
