Dubai Rent Renewal: What Landlords Can Legally Charge Tenants for Rent Hikes, Fees and Ejari

Renewing a tenancy in Dubai can raise questions about rent increases, agent commissions and registration costs. However, tenants do not have to accept every charge demanded by a landlord or property manager. The rules governing rental increases and tenancy renewals set clear limits on what can be imposed, while official registration fees remain separate from charges linked to renewing a lease.

 

Here is what tenants need to know about rent increases, renewal fees and other costs when extending a Dubai tenancy contract.

 

How Much Can Your Landlord Increase the Rent?

 

Rent increases at renewal are governed by Dubai Decree No. 43 of 2013 and the applicable rental index. Depending on how far the existing rent falls below the average rental value for comparable properties, the permitted increase ranges from zero to a maximum of 20 per cent. The amount a landlord can charge therefore depends on the difference between the current rent and the applicable benchmark, rather than simply on the landlord’s assessment of prevailing market prices.

 

A landlord must also give the tenant at least 90 days’ written notice of any proposed change to the rent or other terms of the tenancy contract before it expires, unless the parties have agreed otherwise. The Rental Disputes Center (RDC), the judicial body responsible for resolving rental disputes in Dubai, has confirmed the notice requirement for parties seeking to amend tenancy terms. Tenants should therefore check both the proposed increase and whether the required notice has been served.

 

Can a Landlord Charge a Rent Renewal Fee?

 

No. In 2020, the RDC clarified that landlords and their representatives, including real estate management companies and leasing offices, cannot charge tenants a fee simply for renewing a tenancy contract. The position is intended to prevent landlords or property managers from adding charges that are not permitted under the applicable rental rules.

 

The RDC has also stated that landlords and their representatives cannot insert a special clause into a tenancy contract requiring payment of a renewal fee. A charge described as an administrative, lease-renewal or processing fee does not become permissible merely because it is given a different name. Tenants who encounter such demands should ask the landlord or property manager to identify the legal basis for the charge before making payment.

 

Can a Real Estate Agent Charge a Renewal Fee?

 

Tenants should examine their tenancy contract and any separate agreement with a real estate agent before agreeing to pay additional charges. The distinction is between a fee imposed simply because a lease is being renewed and payment for a separate service that the tenant has expressly agreed to purchase.

 

Where an agent has been specifically engaged to negotiate renewal terms or prepare documents, any service charge will depend on the nature of the work, the agreement with the party responsible for payment and the applicable rules. A landlord or property manager cannot, however, automatically impose an arbitrary renewal charge on a tenant as a condition of extending the tenancy. Tenants should establish who commissioned the service and who agreed to pay for it.

 

Commission and other setup costs should also be distinguished from rent and renewal fees. Before paying an additional amount, tenants should check the terms agreed when the original tenancy was signed and establish whether the charge was clearly disclosed in a separate agreement. A demand made at renewal should not be treated as automatically payable simply because it comes from an agent or property management company.

 

What About Ejari Renewal Fees?

 

Ejari registration is a separate matter from any fee charged by a landlord or agent for renewing a lease. The Dubai Land Department (DLD) publishes official charges for registering tenancy contracts, with the amount depending on the registration channel used.

 

The DLD lists the cost of registering a tenancy contract through the Dubai REST app or its website at Dh177.75, including applicable service partner, knowledge and innovation fees. Registration through a Real Estate Services Trustee Centre carries a listed total of Dh220. Tenants should check the current official fee schedule before paying, as charges and procedures may change.

 

These amounts relate to official registration services and should not be confused with a landlord’s lease-renewal fee. Before completing a renewal, tenants should review their contract, check any proposed rent increase against the applicable RERA rental index and request an itemised breakdown of additional charges. Where a fee appears inconsistent with the rules, seeking clarification from the landlord or the relevant Dubai Land Department authority can help prevent an unnecessary payment.