Operations and Management
Lease Renewal
The process of extending an existing tenancy agreement for a further period.
Lease renewal is the formal process by which a landlord and tenant agree to extend a tenancy beyond its original end date. In the UAE, landlords must give a minimum of 90 days notice before the lease expiry if they intend to change any terms, including rent. IONROI tracks expiry dates and sends alerts 90, 60, and 30 days ahead so landlords can initiate renewals proactively.
Related terms
Frequently asked questions
- How much rent increase is allowed at lease renewal in Dubai?
- In Dubai, rent increases at renewal are governed by the RERA Rental Index. If the current rent is more than 10% below the market rate, landlords can increase by up to 5%. Between 11 and 20% below market, they can increase by up to 10%. More than 40% below market allows up to a 20% increase. Increases above the index are not permitted even if both parties agree. Always check the current RERA rental calculator before issuing a renewal notice.
- How do you calculate the correct notice period for a lease renewal?
- In Dubai, you must notify the tenant of any changes to lease terms (including rent increases) at least 90 days before the lease expiry date. If you miss the 90-day window, you cannot change the terms for the next period and the lease automatically renews under the same conditions. Count backward 90 days from the lease end date to find your deadline. IONROI sends alerts at 90, 60, and 30 days before expiry so you never miss the notice window.
- What is the difference between a lease renewal and a lease extension?
- A renewal creates a new tenancy agreement with potentially updated terms, rent, and conditions, starting on a new lease commencement date. An extension simply adds time to the existing lease without renegotiating terms. In practice, most UAE landlords issue a new contract (renewal) rather than a simple extension, which requires re-registration through Ejari. Renewals give both parties an opportunity to revisit terms; extensions maintain the status quo.
- Does a lease renewal require a new Ejari registration?
- Yes. Every time a tenancy agreement is renewed in Dubai, the new contract must be registered through Ejari. The previous Ejari registration is not automatically carried over; a fresh registration with the updated dates and rent amount is required for the renewed agreement to be legally valid. The renewal fee is the same as a new registration, approximately AED 220 for online processing. Failing to re-register the renewal creates the same legal exposure as not registering the original contract.
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