Rent in the UAE: Increase in rental fees by25%

Since I started renting a townhouse in Dubai with my wife and kids, two years have passed. The lease renewal period is currently ongoing, and I have sent an email requesting an extension to my landlord90 days before the end of the lease term. Additionally, I have reminded him twice about my request via email. The landlord has not responded to either emails or WhatsApp messages. He was unreachable by phone, and even the real estate agent couldn't get in touch with him.

However, recently the landlord contacted me via WhatsApp and informed me that he wants to sell his property and that I must allow interested buyers to visit the house. But there is no mention of viewings by interested buyers in my contract. The landlord is not willing to extend the contract on current terms or based on the Real Estate Regulatory Agency rent calculator. I have not received any notice of rent increase or eviction. The contract stipulates that the landlord must notify me two months before renewal in the event of a rent increase.

Now he says that I either have to extend the contract with the new owner, or he can extend it with a 25 percent rent increase. Can he legally raise the rent by saying it's the market price, even when the Regulatory Real Estate Agency prohibits increases? Can he raise the rent without a 60-day notice? And finally, do I have to agree to show the house to interested buyers? Don't my family and I have a right to privacy? Jay Jay, Dubai.

Response:

No landlord can change any part of the lease agreement without providing a 90-day notice before the end or renewal of the contract.

The increase in rent is regulated by the rental rate calculator of the Regulatory Agency for Real Estate, rather than by market rental prices. The landlord is obligated to renew the contract with you if you wish, regardless of their desire to sell.

If he continues to be obstructive on this point, I recommend that you use the Rera program for collecting and paying rent. This allows you to provide receipts for rent payments and contracts to Rera, which will then contact the owner to request the documents and receipts.

A fee of 1500 dirhams ($408) is charged for using this service.

As for inspections or refusal to inspect, if the contract does not specify that access for viewing purposes is allowed, you are not obligated to agree to it. You are paying rent for what is legally referred to as "quiet enjoyment." This essentially means the right to privacy and use of the property in exchange for the rent you pay.

J.J., Dubai.

Question:

A year ago, my landlord provided me with a 12-month eviction notice. I signed this document, but it was not legally notarized. However, I am interested in continuing to live in this property and offered the landlord a rent increase of 20,000 dirhams. Can I ignore the notice since it was not notarized? S.L., Dubai.

Response:

Your question is a bit confusing, but I will answer as best as I understand your situation. For an eviction notice to be legal, it must be sent by a notary or registered mail and with a prior notice period of 12 months.

It seems that your notification was not notarized, so officially it was sent illegally, even if you signed it. One could argue that your signature, in a sense, confirms it, but the final decision will be made by the judge during the hearing of the case in the Rental Dispute Resolution Committee.

Mario Volpi is the Sales Director at AX Capital. He has been working in the real estate sector for 39 years in London and Dubai. The opinions expressed are not legal advice and are provided for informational purposes only. Please send your questions to [email protected]

Updated: November 23, 2023, 4:00 AM.