UAE Property: ‘Can my landlord add a non-renewal clause in my contract?’

The only way to inform a tenant that they have to vacate the property is by a notice sent via notary public or registered mail. Getty Images

Question: My landlord does not want to issue an eviction notice through the notary office.

Instead, he added a condition in the renewal contract stating that the tenant agreed to not renew the contract and will move out by the lease expiry date.

Is this contract enforceable by the Dubai Land Department?

Will I lose my right to appeal if I decide to renew the tenancy agreement for another year and sign this contract with the aforementioned condition? SK, Dubai

Answer: Law 33 of 2008, which amended some parts of law 26 of 2007, is the law that governs the relationship between landlords and tenants.

This law states that the only way to inform a tenant that they have to vacate the rented property, after serving the 12 months’ notice, is by a notice sent via notary public or registered mail.

Attaching this notification within the rental contract has not been tested in court.

If you decide to contest it, know that the law is not set on precedent. Each judge at the time of a specific hearing will decide if the notice in the contract is valid.

You should contest this clause by stating that you are signing the contract because you are being forced to.

It is worth mentioning that you do not agree with the non-renewal clause at this point.

Ultimately, a judge will decide if the landlord has acted legally or was acting against the spirit of renting by asking you to sign the contract with this clause.

Q: I read about how rental increases are only governed by the Real Estate Regulatory Agency’s rental calculator, not vacant market prices.

I’m confused, as my landlord recently notified us that there would be a rent increase at the time of renewal based on the DLD’s rental valuation certificate.

Is the landlord legally allowed to do this? I also heard a lawyer on radio stating that the rental valuation certificate supersedes the Rera rental calculator. Please advise. NA, Dubai

A: All rental increases are governed by the Rera rental calculator. However, there are instances where a landlord has the right to request the DLD rental valuation certificate.

Once this valuation is done, the amount is then measured against the matrix of decree 43 of 2013, which states the rent increase amount a landlord can legally request based on average similar rent stipulated by the Rera rental calculator.

This decree states that either zero increase or 5 per cent, 10 per cent, 15 per cent or a maximum of 20 per cent rent increase can be levied in one year.

Q: My landlord sent me an eviction notice at the time of renewing the tenancy contract this year, saying he either plans to stay in the apartment or sell it.

However, I know this is an excuse since I refused his demand for a rent increase this year based on the Rera rental calculator.

In case he re-lets the apartment later at a higher price to a new tenant, can I take legal action? MA, Dubai

A: Sending you a 12-month notification to vacate the property for reason of selling or for the landlord or his next of kin to move in is a legitimate reason.

However, the owner cannot evict a tenant to re-let the property to someone else for a higher rent, as this is not allowed.

Once you have vacated and subsequently find out that the landlord has re-let the property, you can file a case at the Rental Dispute Settlement Committee.

You will need to show proof that the property has been re-let. For this, you may need the help of security, concierge or the real estate agency that rented the property because the judge will need to see this evidence to find in your favour.

If you win the case, you could be awarded compensation up to the value of the rent and possibly even costs.

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 [e-mail]