Can I renew my tenancy contract for three months only without any rent increase or penalties?

Greetings,

In Dubai, tenancy contracts are typically renewed on an annual basis unless both parties agree otherwise.

While landlords have the right to set lease terms, any rent increase must comply with the RERA Rental Index.

If your landlord initially agreed to a 3-month renewal but later refused, you may have legal grounds to challenge this, especially if their refusal is based on an unjustified rent hike.

Additionally, the requirement to sign a 12-month lease and pay a two-month penalty for early termination should be reviewed in light of Dubai Tenancy Laws. You may have options to negotiate or contest these terms.

To assess your legal position and explore solutions, we recommend booking a consultation with Future Vision for Advocacy and Legal Consultancy.

Our team can provide expert guidance and legal representation if needed.

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Greetings of the day,

Based on your situation, the landlord cannot legally refuse to renew the contract for 3 months if you have been a tenant for 5 years and are in compliance with the rental index rules.

The rental increase should be in line with the rental index, and the landlord's refusal may not be legally justified.

Dear Client,

Thank you for reaching out regarding your tenancy contract renewal situation. Based on Dubai tenancy laws and the information you’ve provided, here is a professional assessment of your case:

1. Rent Increase

You are correct that any rent increase must comply with the RERA Rental Index. The landlord cannot arbitrarily increase your rent unless it aligns with the index.

If they attempt to impose an unlawful increase, you can challenge this through the Rental Dispute Settlement Centre (RDSC).

2. Contract Duration

While tenancy contracts in Dubai are typically for 12 months, there is no explicit legal obligation for landlords to offer shorter-term renewals.

It is within their rights to refuse a 3-month renewal and insist on a standard 12-month term.

3. Landlord’s Rights and Obligations

- The landlord has the right to refuse renewal terms that deviate from standard practices, such as a 3-month lease.

- However, if they intend to refuse renewal or change the terms of the contract, they must provide you with at least 90 days’ notice before the contract’s expiry, as per Dubai tenancy laws.

If such notice is not given, you may have grounds to challenge their decision.

4. Your Options

Given the circumstances, here are your possible courses of action:

1. Negotiate Terms:

- Propose a full-year renewal with a clause allowing early termination after 3 months without penalties or with reduced penalties. This could be a compromise acceptable to both parties.

2. Accept Full-Year Renewal:

- If negotiation fails and you need to stay beyond May 2025, you can renew for the full year and vacate early by paying the agreed penalty (typically two months’ rent).

3. File a Complaint with RDSC:

- If you believe the landlord is acting unfairly or not complying with legal requirements (e.g., imposing an unlawful rent increase or failing to provide proper notice), you can file a complaint with the Rental Dispute Settlement Centre (RDSC) for resolution.

Conclusion

While the landlord’s refusal to offer a 3-month renewal is not explicitly illegal, it aligns with standard practices in Dubai’s rental market.

Your best course of action would be to negotiate terms that work for both parties or accept the full-year renewal with an understanding of early termination penalties if needed.

If you require further assistance or wish to escalate this matter legally, I recommend consulting with a legal professional or approaching the RDSC for personalized advice.

Please let me know if I can assist you further.

Best regards,

Abdul Wahied

Dear N.,

Thank you for your inquiry. Based on UAE tenancy law:

Tenant's Right to Renew: You have the right to request a renewal of your tenancy contract. However, the landlord is not legally obligated to agree to a shorter contract term (e.g., 3 months).

They can refuse the 3-month renewal and require you to renew for a full year.

Rent Increase: The landlord cannot increase your rent beyond the limits set by the rental index. If they attempt to do so, they are in violation of the law.

Alternative Option: The landlord's offer to renew for one year, with an option to vacate early by paying a penalty of two months’ rent, is legally valid, as long as the penalty is clearly stated in the contract.

You may negotiate with the landlord for a 3-month term, or proceed with the 1-year renewal and vacate early if needed.

Let me know if you need further assistance.

Best regards,

Mohammed Salah

Legal Consultant

Normally, the contract can be extended for three months by mutual consent of the parties.

Otherwise, the tenant has to inform the landlord 90 days prior to notification regarding the changes in the coming contract.

Landlords are not legally obligated to agree to a renewal for a period significantly shorter than the standard one-year term.

You are correct to refer to the rental index. Landlords can only increase rent within the limits specified by the index.

The landlord's offer of a one-year renewal with an early termination penalty is a common practice.

This allows you to secure the property for the time you need, while also providing the landlord with some financial security.

You may try to negotiate with him or we will negotiate with him on your behalf.

If you need to discuss the possibilities in detail, kindly share your WhatsApp number.

Hello,

Short-Term Lease: While the landlord is required to respect the rental index for annual renewals, they are not obligated to grant a renewal for a short-term lease (i.e., for 3 months), as long as they are not violating any terms of the contract.

This is at the discretion of the landlord, and there is no law that compels them to offer a 3-month renewal specifically.

If you do agree to a one-year lease and vacate before the end of the term, you would typically be liable to pay a penalty (as they mentioned—2 months' rent), which is common practice for tenants who break the lease early.

The penalty is usually clearly defined in the tenancy contract.

Dear Sir,

The landlord may reject your request to rent for only 3 months, according to the law, which stipulates that the minimum rental period is one year. Therefore, we recommend negotiating the rent amount with the landlord.

If anything else is required, don’t hesitate to contact us via email or call our offices in Dubai or Sharjah.

Jasim Al Haddad Law Firm Legal Counsel and Consultations

Hello,

Under Dubai Law No. 26 of 2007, as amended by Law No. 33 of 2008, the relationship between landlord and tenant is governed by clear rules regarding renewal and termination of tenancy contracts.

As a tenant residing in the property for 5 years, and since you are willing to renew, the landlord cannot unilaterally refuse renewal unless they have a valid reason stated under Article 25 of Law No. 26 of 2007, such as selling the property or moving in themselves, and only with 12 months' written notice through notary public or registered post.

However, regarding the renewal period, the law does not oblige the landlord to accept a short-term (3-month) contract.

The landlord can insist on a 1-year contract, as tenancy contracts in Dubai are typically for a one-year period.

Also, regarding rent increase, Article 9 of Law No. 26 of 2007 states:

"The Rent Committee shall determine the rent of similar real property taking into account the criteria relating to determining the percentage of rent increase in the Emirate of Dubai."

Thus, any rent increase must comply with the RERA Rental Index and cannot be arbitrary.