Real Estate in UAE: Can a landlord prohibit lease renewal in the contract?

Question:My landlord does not want to issue an eviction notice through a notary. Instead, he has added a clause to the lease renewal agreement whereby the tenant agrees not to renew the agreement and to evict by the end date of the lease. Is this agreement binding on the Dubai Land Use Department? Will I lose my appeal rights if I decide to renew the lease for another year and sign this agreement with the said clause? SC, Dubai.

Response:Act 33 of 2008, which made some changes to Act 26 of 2007, regulates the relationship between landlords and tenants. This law states that the only way to notify a tenant of the need to evict from a rented property after giving a 12-month notice is by notice sent through a notary or by registered mail. Attaching such a notice to the lease has not been the subject of a court challenge. If you decide to challenge it, know that the law does not affect precedent decisions. Each judge will decide at the hearing whether the notice in the contract is valid. You must challenge this condition by claiming that you are signing the contract under duress. It should be noted that you are not agreeing to the non-renewal clause at this time. Ultimately, the judge will decide whether the landlord acted lawfully or contrary to the spirit of the lease in requiring you to sign the agreement with this condition.

Question:

I have read that rent increases are only governed by the Real Estate Regulatory Agency's rent calculator, not market prices. I am confused as my landlord recently notified us of a rent increase at renewal based on the Department of Land Use's rent assessment certificate. Is the landlord legally entitled to do this? I have also heard a lawyer on the radio claim that the rent assessment certificate trumps the Real Estate Regulatory Agency's rent calculator.

Response:All rent increases are governed by the Real Estate Regulatory Agency's rent calculator. However, there are instances where a landlord has the right to request a certificate of rent assessment from the Land Use Department. Once this assessment is done, the amount is compared to the 2013 Ordinance 43 matrix, which establishes the amount of rent increase that a landlord is legally entitled to request based on the average similar rent as determined by the Real Estate Regulatory Agency's rent calculator. This regulation establishes that rent increases can be either zero or 5, 10, 15 or a maximum of 20 percent per year.

Question:

My landlord sent me an eviction notice during this year's lease renewal, saying he either plans to stay in the apartment or sell it. However, I know this is an excuse as I have refused his demand for a rent increase this year based on the Property Regulatory Agency's rent calculator. Can I sue in case he then rents the apartment again to another tenant at a higher price? MA, Dubai.

Response:Sending you a 12-month notice to evict on the basis of a sale or so that the landlord or a close relative will move in is a legal ground. However, the owner cannot evict the tenant to re-rent the unit to another tenant at a higher rent because it is not allowed.

After you have moved out and later find out that the landlord has re-rented the apartment, you can file a complaint with the Rent Dispute Resolution Board. You will need proof that the apartment has been re-rented. To do this, you may need the help of security, a concierge, or the real estateagency that rented out the apartment, because a judge will need to see this evidence to rule in your favor. If you win your case, you may be compensated up to the amount of rent and possibly even costs.

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: December 28, 2023, 4:00 AM.