Dubai Rent Renewal Rules: Legal Rent Increases, Extra Charges and Ejari Costs Explained

Know your rights on rent revisions, renewal charges and Ejari registration costs before signing a new tenancy contract.

Renewing a lease in Dubai entails more than agreeing to pay a new rent amount. Tenants may have to deal with proposed increases, cover administrative fees and clarify who should bear an estate agent’s renewal charges. Knowing your rights under Dubai’s rental laws can help you separate legitimate costs from demands that have no legal basis.

Dubai’s regulations set out permissible rent adjustments, specify the terms of tenancy renewals and fix Ejari registration fees. Any additional service charges, on the other hand, depend on the nature of the service offered and the agreement between the parties involved.

Here are the questions tenants most often ask before renewing a tenancy contract in Dubai.

How Much Can a Landlord Increase Rent in Dubai?

A landlord cannot decide on a rent increase simply by comparing the existing rent with current market prices. The permissible amount is determined by Dubai’s rental law, Decree No. 43 of 2013, and the RERA rental index.

The increase depends on how far the existing rent sits below the average rent for similar properties in the area. That difference determines whether there is any room for adjustment and, if so, how much — from zero up to a maximum of 20 percent.

This means a landlord is not automatically entitled to increase the rent by 20 percent when a lease comes up for renewal. The gap between the existing rent and the average rental value dictates how much can be added to the new rent amount.

A tenant should cross-check the proposed amount against the RERA rental index before agreeing to renewed terms. If the increase proposed by a landlord exceeds the permitted percentage, the tenant should question it or take the dispute to the Rental Dispute Settlement Centre.

Is 90 Days’ Notice Required for a Rent Increase?

Either party can propose to renew a tenancy contract with modified terms. Unless the contract states otherwise, a landlord or tenant who wants to change the terms on renewal must notify the other party of the proposed changes at least 90 days before the lease expires.

This matters because a proposed change to the rent cannot be assumed to be accepted simply because the contract is coming to an end. A disputed renewal proposal should be taken to the Rental Dispute Settlement Centre. When requesting a change to the terms, keep a record of the request, including the date it was sent.

If a landlord insists on a rent increase without following the 90-day rule, the tenant should question the legality of the request before agreeing to any modified terms.

Can a Landlord Demand a Tenancy Renewal Fee?

According to Dubai’s Rental Dispute Center (RDC), a landlord, property manager or leasing office cannot ask a tenant to pay a fee simply for renewing a tenancy contract. In short, there is no such thing as a lawful renewal fee in a lease agreement.

The RDC has also clarified that a renewal charge clause inserted into a contract is not enough to require a tenant to pay it on renewal. A landlord or their representative cannot override the law by adding a special renewal charges provision to a lease. The mere fact that a provision is labelled “renewal charges”, “administration fees” or “lease renewal fee” does not justify deducting it from a tenant’s payments.

A tenant asked to pay a renewal fee should remind the person or entity requesting it that such a charge is not permitted, and ask for the legal basis for the demand. Tenants should also distinguish between a renewal charge and a fee for a service they have requested and approved in writing.

Are Real Estate Agents Allowed to Charge Renewal Fees?

Charges involving real estate agents need careful scrutiny, because a renewal fee is not necessarily a fee for a service. A tenant should question the legality and basis of any charge demanded by a landlord, property manager or estate agent. A tenant may, for example, have hired an agent to provide specific services such as negotiating, preparing documents for the renewed terms or performing another task.

Whether a tenant should bear an extra cost depends on the agreement, the services rendered and the applicable law. However, a landlord or property manager cannot pass an arbitrary renewal fee on to a tenant just because a lease is renewed. The involvement of an estate agent does not change this.

Before paying any renewal fee, a tenant should review the original tenancy contract, check for any separate agreement with the agent, and identify who requested what and who approved it. This is especially important where a renewal demand that includes an additional charge has been presented through an agent.

A tenant should not pay simply because an estate agent or property management company has asked. At a minimum, ask for a detailed description of the service and confirm whether you agreed to bear any extra cost.

How Much Does Ejari Renewal Cost in Dubai?

Ejari renewal costs are not part of the tenancy contract, nor of any additional charges a landlord may demand on renewal. The Dubai Land Department (DLD) publishes the Ejari fees on its website.

The amount payable depends on the channel used. According to the DLD’s published list, the total cost of registration through the Dubai REST app or website — including the service partner and knowledge and innovation fees — is AED 177.75. Registration through a Real Estate Services Trustee Centre costs AED 220.

Tenants should always confirm the current amount with the DLD before paying. Ejari is a one-time registration fee for each contract, so it is not a legitimate reason for a landlord or property manager to demand extra fees on renewal.

A tenant should also confirm that the amount quoted by the service channel covers the renewal in full, and whether the provider is asking for anything beyond the published fee.

What Should Tenants Check Before Signing a Renewal Agreement?

A few checks are worth making before signing a renewed tenancy contract. First, compare the proposed rent with the applicable RERA rental index and make sure any increase falls within the permitted range.

Second, confirm that the required 90-day notice was given before the lease expiry. Ask for an itemised list of any additional costs the landlord proposes to include in the renewed terms, so that Ejari registration fees can be clearly distinguished from service charges.

Keep copies of the existing tenancy contract, the renewal demand, any notices received, and invoices and receipts for any payments made. If a dispute arises over the renewed terms, these documents can be produced as evidence.

Where a term or condition seems ambiguous or questionable, seek clarification from the relevant authority. If that does not resolve the issue, the tenant may file a case with the Rental Dispute Settlement Centre.

Frequently Asked Questions