Tenancy Contract Renewal Dubai: Process, Rent Increase Rules & RERA Calculator

Tenancy contract renewal season in Dubai brings one big question for every tenant: will my rent go up, and by how much? RERA regulations set strict limits on rent increases, but many landlords push beyond what is legally allowed. This guide explains the renewal process, your rights, and how to verify any proposed increase using the RERA Rental Calculator.

How Does Tenancy Contract Renewal Work in Dubai?

Tenancy contract renewal in Dubai either happens automatically under the same terms if neither party gives 90 days notice, or through a negotiated renewal where the landlord may propose new terms including a rent adjustment within RERA-regulated limits.

Most tenancy contracts in Dubai are set for one year and include an auto-renewal clause. Here is how the renewal process typically works:

1. 90 days before expiry: Either party can give written notice of their intent to change terms or not renew
2. If no notice is given: The contract automatically renews under the same terms for the same duration
3. If the landlord proposes changes: They must notify you in writing at least 90 days before the contract expires
4. Negotiation period: You and the landlord discuss and agree on new terms
5. New contract signed: Both parties sign the renewed contract (or an addendum)
6. Ejari renewal: The new contract must be registered through Ejari (see our Ejari renewal guide)

If you cannot agree on new terms, the Rental Disputes Centre (RDC) can mediate. The tenant has the right to remain in the property during the dispute resolution process — a landlord cannot force you out without a court order.

What Are the RERA Rent Increase Rules in Dubai?

RERA's rent increase rules in Dubai are based on the Smart Rental Index, which compares your current rent to the average market rent for similar properties — if your rent is within 10% of the market average, the landlord cannot increase it at all.

The RERA Rental Index sets maximum allowable rent increases based on how far below market average your current rent is:

Important points to understand:

• These are maximum limits — the landlord can increase by less but never by more
• The market average is determined by RERA's Smart Rental Index, not by what the landlord claims comparable properties rent for
• The increase applies to the annual rent, not individual cheque amounts
• These rules apply to all residential tenancies in Dubai (except free zones with their own regulations)

If you are renting in high-demand areas like Downtown Dubai or Dubai Marina, your rent may already be close to market average, meaning your landlord may not be able to increase it at all.

How Do You Use the RERA Rental Calculator?

Access the RERA Rental Calculator through the Dubai Land Department website or Dubai REST app, enter your property type, area, number of bedrooms, and current rent, and the calculator will tell you the maximum allowable rent increase based on the Smart Rental Index data.

Step-by-Step Guide

1. Go to the calculator: Visit the Dubai Land Department website and search for "Rental Index" or "Rental Calculator," or access it through the Dubai REST app
2. Select property type: Apartment, villa, studio, or other
3. Select area: Choose your specific area (e.g., Dubai Marina, Business Bay, JVC)
4. Enter property details: Number of bedrooms, property size
5. Enter current annual rent: Your current rent as stated in your tenancy contract
6. View the result: The calculator shows the market average for your property type and area, and whether an increase is permitted

What to Do With the Result

• If it shows 0% increase: Your landlord cannot legally raise your rent. Share the calculator result with them.
• If it shows a permitted increase: The landlord can increase up to that percentage but not above it. You can still negotiate a lower increase.
• If the landlord demands more: Show them the RERA calculator result and remind them the increase is illegal. If they insist, file a complaint with the Rental Disputes Centre.

Take a screenshot of your RERA calculator result. If your landlord disputes it, this screenshot serves as evidence at the Rental Disputes Centre. As a company that has facilitated 15,000+ moves since 2010, we have seen many tenants successfully challenge illegal rent increases using this tool.

What Is the Correct Notice Period for Renewal?

Both landlord and tenant must give 90 days written notice before the contract expiry date if they want to change terms or not renew — failure to give proper notice means the contract auto-renews under the same terms for the same period.

Key notice requirements:

• 90 days minimum: This is the standard notice period under RERA regulations
• Written notice: Verbal notice or WhatsApp messages are not legally sufficient
• Delivery methods: Registered mail, notary public letter, or hand delivery with signed acknowledgment
• Content: The notice should clearly state the proposed changes (if any) and reference the contract being renewed

If You Want to Move Out

Give your landlord written notice at least 90 days before your contract expires. Then:

1. Plan your move — book residential movers 2-3 weeks before your move-out date
2. Schedule a move-out inspection with your landlord
3. Cancel your DEWA account
4. Cancel your Ejari registration (see our Ejari cancellation guide)
5. Collect your security deposit refund

If the Landlord Wants to Increase Rent

The landlord must notify you in writing at least 90 days before expiry with the proposed new rent. You can:

• Accept the increase if it is within RERA limits
• Negotiate a lower increase
• Challenge the increase using the RERA Rental Calculator
• File a case with the Rental Disputes Centre if the increase is illegal
• Give notice and move out if you find a better deal elsewhere

What Should You Do If Your Landlord Demands an Illegal Rent Increase?

If your landlord demands a rent increase above RERA limits, check the RERA Rental Calculator to verify the maximum allowed increase, share the result with your landlord in writing, and if they refuse to comply, file a case with the Rental Disputes Centre within 30 days.

Here is the process to challenge an illegal rent increase:

1. Check the RERA calculator: Verify the maximum allowable increase for your property
2. Communicate in writing: Send your landlord an email or letter referencing the RERA Rental Index result and stating that the proposed increase exceeds the legal limit
3. Keep records: Save all communication — emails, WhatsApp messages, letters — as evidence
4. File with the Rental Disputes Centre: If the landlord insists on the illegal increase, file a case with the RDC. The filing fee is 3.5% of the annual rent (minimum AED 500, maximum AED 15,000)
5. Stay in the property: You have the right to remain in the property during the dispute process. The landlord cannot evict you without a court order

The Rental Disputes Centre typically resolves rent increase disputes within 15-30 working days. During this time, continue paying your current rent amount on schedule to demonstrate good faith.

How Should You Prepare for Tenancy Renewal?

Start preparing for tenancy renewal 120 days before your contract expires by checking the RERA Rental Calculator, researching comparable rents in your area, deciding whether to stay or move, and preparing your negotiating position based on market data.

A timeline approach works best:

120 Days Before Expiry

• Check the RERA Rental Calculator for your property
• Research current asking rents for similar properties on Bayut, Property Finder, and Dubizzle
• Assess your satisfaction with the property and landlord

90 Days Before Expiry

• If moving: give written notice and start planning your relocation
• If staying: wait for the landlord's notice or initiate renewal discussions
• If the landlord proposes an increase: verify it against the RERA calculator

60 Days Before Expiry

• Finalise renewal terms or confirm your move-out plans
• If moving: book your movers and start preparing for the transition
• If renewing: sign the new contract and schedule Ejari renewal

30 Days Before Expiry

• Complete Ejari renewal for the new contract
• Or: execute your move-out plan, cancel DEWA, and cancel Ejari

Whether you are renewing or moving, being organised reduces stress and costs. Our 4.9-star rated team handles moves across all Dubai areas — from JVC to Palm Jumeirah — with the same attention to detail that you should bring to your tenancy renewal.

Frequently Asked Questions

Can My Landlord Refuse to Renew My Tenancy Contract?

A landlord can only refuse to renew your tenancy contract under specific conditions defined by RERA. These include the landlord wanting to use the property for personal or immediate family use, the property requiring demolition or major reconstruction approved by the authorities, or the landlord selling the property. In all cases, the landlord must give you 12 months written notice through a notary public. Without valid grounds and proper notice, your landlord cannot refuse renewal, and you have the right to file a case with the Rental Disputes Centre if they try to prevent renewal without legal justification.

What Happens If I Stay After My Contract Expires Without Renewing?

If you stay in the property after your tenancy contract expires and neither party has given 90 days notice to change terms or vacate, the contract is considered automatically renewed under the same terms for the same duration. This means your rent stays the same, and all other conditions remain unchanged. You should still update your Ejari registration with the new contract dates to keep your tenancy officially documented. If the landlord attempts to change terms or demand payment for a new contract after the auto-renewal has taken effect, remind them that the auto-renewal provision maintains the original terms.

Can I Negotiate a Rent Decrease at Renewal?

Yes, you can negotiate a rent decrease at renewal, especially if market rents in your area have dropped since you signed your original contract. Research comparable properties on Bayut, Property Finder, and Dubizzle to build your case. If similar units in your building or area are listed at lower rents, present this data to your landlord. Landlords often prefer keeping a good tenant at a slightly lower rent over dealing with vacancy, marketing costs, and the risk of a new tenant. The RERA Rental Calculator only governs maximum increases — there is no regulation preventing a landlord from voluntarily reducing your rent.

Do I Need a New Tenancy Contract for Renewal or Can I Use an Addendum?

Both options are valid for tenancy contract renewal in Dubai. An addendum (also called a renewal agreement or side letter) is a shorter document that references the original contract and only specifies the changed terms — such as the new contract dates and any rent adjustment. A full new contract replaces the original entirely with all terms restated. For Ejari purposes, both are acceptable. However, if significant terms are changing (maintenance responsibilities, number of cheques, included amenities), a full new contract is recommended to avoid confusion. Whichever approach you use, ensure both parties sign and the renewed agreement is registered through Ejari within 14 days.