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UAE property: ‘Should I tell my landlord that I don’t plan to renew my lease?’


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My tenancy contract expires soon and I wish to upgrade to a bigger apartment in the same area.

I informed the landlord’s real estate company by email more than a month before the expiry of the lease that I would not renew the contract.

Although a clause in the tenancy contract states that I have to inform the landlord 90 days before the expiry of the lease, I could provide only 35 days’ notice.

I haven’t received a response from the landlord yet. I spoke to one of his employees who acts on his behalf. I was told that my landlord’s daughter, who manages his properties, refused to accept my notice.

Although I am willing to pay the Real Estate Regulatory Agency’s fine or penalty for not providing the 90 days’ notice, my landlord’s agent refuses to accept it.

I have stayed in this apartment for the past 12 years and always paid rent on time. However, I am unable to elicit a favourable response from the landlord. Please help. RV, Dubai

It is not necessary to inform the landlord about non-renewal of the tenancy agreement because the contract has a start and end date, according to law 33 of 2008.

However, it is always advisable to inform the landlord because he/she will be expecting the notice and if you don't give it, you could have a situation on your hands.

Ninety days’ notice is required only if alterations are made to the existing contract, for example, any increase or decrease in the rental amount.

However, since your contract has a 90-day notice clause, you should abide by it as you signed the document and agreed to the terms contained therein.

Since you failed to serve the contract’s full 90-day notice, there will be some form of penalty. Breaking a contract normally incurs a penalty of one month’s rent or, in some cases, this can also be two months’ rent.

As you served only one month’s notice instead of the required three, perhaps you can offer two months’ worth of rent as compensation to the owner.

The landlord cannot hold you to another renewal against your wish. If you cannot arrive at a mutual agreement with the landlord, file a case at the Rental Dispute Settlement Committee in Dubai.

Since you are willing to pay a penalty, the judge may decide on the matter by agreeing on a compensation amount and potentially release you from the tenancy.

I have been living in a rented apartment in Dubai since last year. Four months before contract expiry, I informed the landlord of my plans to renew the lease and asked for the renewal rent.

After repeated messages, my landlord revealed that he plans to sell the property. Since the new buyer is an investor, my landlord said I did not need to vacate the apartment.

However, in the month of May, my landlord informed me that the buyer wants to stay in the apartment and offered me an extra 15 days of occupancy if I paid rent for that period.

I was reminded of the rule that requires landlords to serve 12 months’ notice if they want the tenant to vacate for the reason of selling the property.

Although I conveyed this rule to the landlord, he did not respond. Later, his legal adviser called me and said the new buyer wants to discuss this matter with me.

Can the new buyer increase the rent, although I haven’t received the mandatory 90-day notice for a rent increase? MD, Dubai

If the new owner wants to use the property themselves or for their next of kin of first degree, they must send you a written request of the same via notary public or registered mail, giving you 12 months’ notice to vacate.

This notice should be sent to you upon expiry of your tenancy agreement, although some judges at the RDSC allow this notice to be served at any time.

All the terms and conditions of your contract will remain the same as before because neither the new buyer nor your previous landlord gave you the statutory 90-day notice from the renewal date to change the contract.

Therefore, your renewal should go ahead smoothly with the same terms and conditions as before, including the rental amount.

Mario Volpi is the sales and leasing manager at Engel & Volkers. He has worked in the property sector for more than 35 years, in London and Dubai. The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario.volpi@engelvoelkers.com

PROFILE OF SWVL

Started: April 2017

Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh

Based: Cairo, Egypt

Sector: transport

Size: 450 employees

Investment: approximately $80 million

Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani

Name: Peter Dicce

Title: Assistant dean of students and director of athletics

Favourite sport: soccer

Favourite team: Bayern Munich

Favourite player: Franz Beckenbauer

Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates 

 

Squid Game season two

Director: Hwang Dong-hyuk 

Stars:  Lee Jung-jae, Wi Ha-joon and Lee Byung-hun

Rating: 4.5/5

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

MATCH INFO

Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid

When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid

Expert input

If you had all the money in the world, what’s the one sneaker you would buy or create?

“There are a few shoes that have ‘grail’ status for me. But the one I have always wanted is the Nike x Patta x Parra Air Max 1 - Cherrywood. To get a pair in my size brand new is would cost me between Dh8,000 and Dh 10,000.” Jack Brett

“If I had all the money, I would approach Nike and ask them to do my own Air Force 1, that’s one of my dreams.” Yaseen Benchouche

“There’s nothing out there yet that I’d pay an insane amount for, but I’d love to create my own shoe with Tinker Hatfield and Jordan.” Joshua Cox

“I think I’d buy a defunct footwear brand; I’d like the challenge of reinterpreting a brand’s history and changing options.” Kris Balerite

 “I’d stir up a creative collaboration with designers Martin Margiela of the mixed patchwork sneakers, and Yohji Yamamoto.” Hussain Moloobhoy

“If I had all the money in the world, I’d live somewhere where I’d never have to wear shoes again.” Raj Malhotra

Sarfira

Director: Sudha Kongara Prasad

Starring: Akshay Kumar, Radhika Madan, Paresh Rawal 

Rating: 2/5

Updated: August 11, 2022, 5:09 AM