The National - News

Q ‘Does a lease renewal notice have to include how much the rent will increase?’

- MARIO VOLPI

My rental contract will expire in six days. Even though my landlord sent a rent increase notice via email on January 9, which was 90 days before the expiry of the tenancy contract in accordance with the law, he did not mention how much the increase would be.

However, the notice said the rent would be “potentiall­y” increased based on a physical evaluation of the property.

I said that I wanted to stay another year in the apartment. However, I added that the Real Estate Regulatory Authority does not allow for a rent increase in the area.

The rental evaluation certificat­e was delivered to me last week and it showed a 30 per cent increase.

According to Article 9 of Law No 26 of 2007, the notice of increase must specify the new rental amount the landlord intends to charge, otherwise I cannot make an informed decision. What can I do in this situation? Does the rent contract continue as is? Do I need a new Ejari? OU, Dubai

AAny changes to a rental contract do have to be communicat­ed in writing to the tenant, giving 90 days’ notice of such changes.

However, in your case, I would question a few points. First, your landlord offered you the required notice to alter the contract, in this case looking to increase the rent.

But rather than wait for the valuation report, he should have said that whatever the changes are, they must be in line with what the rental calculator states is allowed at the time of the changes being effective.

Despite what Article 9 of Law No 26 of 2007 states, it is OK to not confirm the exact rent increase amount at the 90-day point, but it has to be in line with the rental calculator.

These rental valuation reports should not be allowed because they can give only an opinion of fair market rent based on a vacant property, not one where the tenant is still residing. That’s the job of the rental calculator.

Therefore, my advice would be to contest this report by filing a case against the landlord for trying to use it to increase your rent by too much at once.

You say the rental calculator confirms no rental increase for this renewal. While this may be correct, my advice would be to try to find common ground with the landlord by offering a more affordable increase.

If you cannot agree, then file a case at the Rental Dispute Settlement Committee and let the judge decide.

I purchased an apartment in Dubai last month and intend to move in. The tenant was served a 12-month notice by the previous owner. His contract ends in November.

The Dubai Land Department said I need to serve a new 12month eviction notice.

I sent a new contract draft to the tenant with an expiry date of November 2023, without response.

My tenant has not renewed his Ejari since January 2023. Should I still serve him the new 12-month legal notice to vacate since his Ejari has expired? KT, Dubai

The rental contract is still valid because the tenant did have an Ejari on his tenancy. All that has happened is that he has not renewed it, which doesn’t invalidate his current tenancy agreement.

I suggest he renews the expired one, so the paperwork is in order. You can still go ahead and serve him your own 12month eviction notice.

This has to be served via a notary public or by registered mail. He won’t need to leave until 12 months from the date of your eviction notice.

Mario Volpi is the sales director at AX Capital. He has worked in the property sector for 39 years, in London and Dubai. The opinions expressed do not constitute legal advice and are provided for informatio­n only. Please send any questions to m.volpi@axcapital.ae

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