When your lease contract is coming to an end, renewing it is a crucial decision. That said, if you have a good tenant and landlord relationship where both adhere to the tenancy agreement throughout the lease period, it is preferable to renew the contract. Moreover, tenants need to consider several factors, such as contract registration, renewal fees, rent increase and lifestyle.
Here we have listed some factors to look out for when renewing the tenancy contract.
How to Prepare for the Tenancy Contract Renewal
Finding a perfect rental home is tough. Once you find a house or apartment for rent in the UAE that meets your requirements, you can renew the tenancy contract. Besides, if tenants and landlords are on good terms, renewing the lease agreement will provide stability to the tenants.
Moreover, searching for a new rental property will consume time. Tenants will have to consider a checklist before renting an apartment or house. That said, renewing a rental agreement helps set the terms mutually- convenient for both parties.
Here’s a checklist when you renew the tenancy contract to help you consider some essential factors.
FUTURE PLANS
Tenants must inform the landlord to renew the tenancy contract 90 days before the lease contract expires as per the RERA tenancy laws. That said, tenants will have to consider their plans and inform the landlord accordingly.
Future plans include job requirements, lifestyle, building conditions, amenities and facilities. If the tenants find the current home meets the requirements, they can renew the contract.
BUDGET
Analysing the budget and annual rent increase is also an essential factor when planning to renew the tenancy contract. For that, tenants or landlords can use the RERA rental increase calculator to determine the annual rent cost in Dubai. Tenants can decide their budget accordingly.
Alongside, tenants must keep in mind other costs, such as the following:
- Utility bills
- Municipality housing fees
- Ejari renewal fees (if the property is in Dubai) or Tawtheeq renewal (in Abu Dhabi)
HOME MAINTENANCE
According to the tenancy laws in Abu Dhabi, Dubai or other Emirates, it is the responsibility of landlords to provide houses for rent in optimal condition. However, landlords have the right to refuse the contract renewal if the house requires major repair and maintenance.
In that case, tenants can search for a new rental house as per their budget. Remember to follow the checklist when signing a new rental agreement.
LEASE AGREEMENT TERMS
When you renew the tenancy contract and have a good tenant-landlord relationship, you can request the landlord to certain terms. For instance, allowing pets in the house. Moreover, read the renewal lease contract terms thoroughly.
Landlords can also request a lease valuation certificate in Dubai and increase the rent accordingly. Therefore, reading the terms carefully can help avoid future conflicts.
LIFESTYLE
Considering the lifestyle is also important when you renew the tenancy contract. The rental home may require upgrades and it may not be in the same condition as it was when you signed the agreement.
Therefore, when deciding to move into the new house, you can request a security deposit refund from the landlord. You can choose a different neighbourhood with more amenities and facilities, such as gyms, swimming pools, shopping malls, and supermarkets.
FAQS
When considering the tenancy contract renewal, you will have some questions. Here are the answers to the frequently asked questions.
WHEN SHOULD I RENEW THE TENANCY CONTRACT?
According to the RERA tenancy laws, tenants need to inform the landlord 90 days in advance if they want to renew the contract. However, if the tenant doesn’t inform, the tenancy contract will continue until the landlord asks for eviction.
HOW TO RENEW A TENANCY CONTRACT ONLINE?
After signing the rental agreement renewal, the tenants can register the renewal online. For instance, if you live in Abu Dhabi, you can renew Tawtheeq online and you can renew Ejari when living in Dubai.
That wraps up the considerations when you renew the tenancy contract. Whether you rent an apartment in Dubai or any other Emirate, you need to comply with the rules and regulations when renewing your tenancy agreement.
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