How to handle a rental dispute over a 20% rent increase upon non-renewal of EJARI?

You do not have to pay the 20% increase according to the RERA index because you did not request a renewal.

Greetings of the day,

Your situation involves several legal considerations under UAE law, specifically concerning rental agreements and disputes in Dubai.

1. Once the EJARI expires, the tenancy agreement is effectively terminated unless renewed by mutual agreement between the landlord and tenant.

2. If you did not express intent to renew and the landlord accepted rent post-EJARI expiry, this may indicate an implied renewal. However, a formal renewal or updated EJARI registration is typically required to make this binding.

3. Landlords commonly request a two-month notice if tenants intend to vacate. If this requirement was explicitly stated in the original tenancy agreement, you are obligated to adhere to it.

4. The 20% rent increase must align with the RERA Rental Index and is valid only for renewals of existing tenancy agreements.

5. In such cases, RERA may require you to vacate if the agreement was breached or notice was not adequately provided.

6. Submit your written defense to the RERA Rental Dispute Center (RDC), emphasizing your intent to vacate and the landlord's demands being unreasonable.

Best Regards,

Sara Al Saedi Advocates & Legal Consultants

Dear Questioner,

Thank you for your inquiry regarding the rental dispute with your office landlord.

Based on the information provided, it appears that there are several key issues concerning the expiry of your EJARI and the landlord’s demand for a 2-month notice as well as the 20% rent increase based on the RERA rent index.

Here's a detailed breakdown of the situation and the legal aspects involved:

1. Expiry of the EJARI and Notice Requirements

As your EJARI expired on 19th October 2024, and there was no renewal request from your side, this typically signifies the end of the tenancy agreement.

However, many commercial lease agreements require a notice period for vacating, even if the contract has expired.

- Notice Period:

If the lease agreement or the UAE Rental Law requires a specific notice period (commonly 60 days for commercial leases), you are obligated to provide that notice, even if you do not intend to renew the lease.

Since you have agreed to provide a 2-month notice (despite the expiry), this should be in line with the terms, provided there is no inconsistency in the agreement.

- Vacating the Premises:

If the landlord insists on a 2-month notice, you are required to comply, but this would not extend your obligation to pay any increased rent if you are vacating. You are not obliged to extend the contract or renew the EJARI unless there is an explicit agreement to do so.

2. 20% Rent Increase Based on RERA Index

Regarding the 20% rent increase the landlord is requesting, this typically applies only when the tenant is continuing the lease under new terms, such as renewing the EJARI.

Since you have no intention to renew the contract and are offering to vacate, the RERA rent index increase should not apply to your situation.

If you are vacating at the end of the lease term, you should not be liable for any rent increase post-expiry unless explicitly agreed otherwise in writing. The landlord’s demand for the increase may be unfounded if the lease is expiring, and you are merely complying with the notice requirement.

3. RERA Eviction Case

The landlord’s filing of an eviction case at RERA could be a measure to enforce their position regarding the notice period and rent increase. It is crucial to present the facts clearly to RERA:

- Expired Lease and Intent to Vacate:

Clearly explain to RERA that the EJARI expired on 19th October 2024, that you have no intention of renewing, and that you are willing to vacate the premises in compliance with the agreed-upon notice period.

- Offer to Settle:

Since you have offered to pay for the outstanding dues and vacate, you should reiterate this position to RERA, emphasizing your willingness to resolve the matter amicably without further escalation.

4. Next Steps and Recommendations

- Confirm Lease Terms:

Review the tenancy agreement to verify the specific terms concerning notice periods, rental increases, and renewal obligations. If there are discrepancies or ambiguities, it may be possible to challenge the landlord’s claims regarding the rent increase.

- Negotiation with the Landlord:

Since you have already expressed your intent to vacate, consider drafting a formal letter offering to settle the matter amicably, outlining your intent to vacate and fulfill any remaining financial obligations, without accepting the rental increase.

- RERA Mediation:

If the matter proceeds to RERA, you should prepare a clear defense based on the expiry of the EJARI, your non-renewal decision, and your offer to vacate. If RERA is involved, they may attempt mediation or provide a ruling based on the facts and the rental laws.

If the landlord's demands are unjustified, you may have grounds to challenge them at RERA or through legal proceedings.

Please let me know if you would like assistance in drafting formal letters or if you need further clarification on any points. I am available to help guide you through this process.

Best regards,

Mohammed Salah

Legal Consultant

Hello,

As you did not request a renewal after the expiration, your contractual obligations have ended. However, landlords often require a notice period if a tenant intends to vacate.

RERA Rent Index provides guidelines for rent increases based on market conditions. However, RERA typically allows landlords to increase rent only when a new lease agreement is signed, or if there is a renewal agreement in place.

Since you have not renewed the EJARI contract, the landlord should not apply an increase based on the RERA index unless a renewal of the contract has been agreed upon.

For a detailed discussion, kindly share your WhatsApp number.

Hello,

The landlord may not request a rent increase without notifying the tenant 90 days before the expiration date of the contract.