UAE Property: 'How much rent should a tenant pay for two months?'

Question: If an existing tenant does not want to extend a lease for 12 months, but rather for two, what is the fair rent to pay for the extension? He’s been living in the property for eight years. Should the amount be the same as the existing rent contract, according to the Real Estate Regulatory Agency’s rent calculator or based on current market rates ? If the tenant refuses to leave – their new home is due for handover in two months – could they be evicted by the landlord or have to pay a fine? What is the likelihood of the Rental Dispute Settlement Committee supporting the tenant’s demand to stay for an additional two months and pay a rent determined by the Rera calculator? MD, Dubai Answer: In situations like these, it’s all about finding a compromise. I find it staggering that a landlord would expect the two months to be at the new market rate, given the long-standing business relationship they have shared. I believe the tenant is being reasonable in offering the new rent as per the Rera rental calculator, given that presumably it would be at an increased pro rata rate anyway. Either way, if no agreement can be made, the only alternative would be for one of the parties to file a case at the RDSC, which will look at the case and decide on who is being reasonable. I cannot confirm exactly what the likely outcome would be, but suspect that, as it is for only an additional 60-day period, the judge would most likely find in the tenant’s favour. Q: Is sending a registered letter to my tenant sufficient notice of eviction? KT, Dubai A: As per law 33 of 2008, which amended some parts of law 26 of 2007, it states that the only way to inform a tenant of a 12-month eviction notice is through notary public or registered mail. According to the law, it is either or. However, my advice would always be to do both. This way, there is no confusion as to the validity of the 12-month notice. Some lawyers will tell you to always just do it through notary public as this adds weight to the notice. Q: A tenant stayed in my property for three years and I served an eviction notice through a notary public last year for the purpose of selling the unit. The tenant vacated the property in February. However, I am unable to sell the unit at the desired sales price. Can I re-let the property without any problem? SA, Dubai A: The only way to re-let a property that was previously occupied by a tenant you evicted is to get a no-objection certificate (NoC) from them. In addition, you must re-offer the property to the old tenant and give them first refusal to move back in. The rental amount has to be at the original rent, not vacant market rent. If the tenant doesn't want to move back in, due to, perhaps, having moved on with their life or plans, this is when you should request the NoC. This way, you can go ahead and re-let the property to another tenant at the market rent. Q: If a tenant’s office lease expires on February 2, 2026, can I send the 12-month notarised eviction notice for reason of selling now? Or should I wait one year and serve the notice before the lease expires? JL, Dubai A: You can send a notification to evict at any time, but it has to be at least for 12 months. However, if the tenant is asked to move out earlier than the contract states, there ought to be some form of compensation. But this has to be agreed on with the tenant. Mario Volpi has worked in the property sector for 40 years in London and Dubai. The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mariovolpi64@gmail.com