UAE Property: ‘Should I inform my landlord that I don't intend to renew my lease?’

The rental market in Dubai and Abu Dhabi is buoyant. istockphoto.com

Question: My landlord has been silent for six weeks after issuing a renewal tenancy contract that is valid only for eight months next year. We have not signed this contract.

We have tried to communicate with him to negotiate a contract for a full 12 months instead of the eviction date, but he has not responded.

Do we have to give notice if we want to vacate at the end of the contract? ML, Dubai

Answer: Law 33 of 2008 amended some parts of law 26 of 2007, which is the law that governs the relationship between landlords and tenants.

In this amended law, the notice period for non-renewal was removed, so technically speaking, a tenant does not have to give notice for non-renewal because the contract has a start and an end date.

The 90-day window is there for any changes to the contract by either party at renewal but if the landlord remains silent, you are at liberty to leave at the end of your tenancy.

Having said this, most landlords, and indeed, tenants, are not aware of this rule, so it is possible that you run the risk of losing your deposit when the landlord eventually finds out you moved out without the notice that he thinks is mandatory and could use this as compensation for the same.

This will mean potentially you would have to file a case at the Rental Dispute Centre to sort out the differences between the parties.

Q: Our tenancy contract in Abu Dhabi expires in one month. When we were asked previously about renewal, we agreed after considering that we would continue to stay in the country.

We have stayed here for three years already. Every time, the renewal contract was signed about a week before, but the communication about our intentions was done during the 90 days before the expiration of the contract.

Unfortunately, we have to leave the country, cancelling our residence visa for good. We have been taken totally off guard as well and need to find a solution fast.

Is there a special provision for this in the law? Can we request for non-renewal of the tenancy contract? What would be the consequences and penalties involved, considering the 60 days’ notice to the property management in case of leaving the property mentioned in the contract? MK, Abu Dhabi

A: Given you have confirmed you wished to renew the contract at the 60-day notice date, you may now find yourself in a situation that could lead to penalties.

Having said this, it is now down to the discretion of the landlord as to what happens next.

The rental market in both Dubai and Abu Dhabi is buoyant, but this does not negate your obligations, so I would advise you to set up a meeting with the landlord to try to find some sort of a compromise that does not leave you out of pocket.

I stress that you most probably will face some sort of a penalty because now there is little to no time for the landlord to find another tenant before you move out, so prepare yourself to pay a compensation to the landlord.

The compensation is about one or two months’ rent, but only if the landlord agrees.

If you can find another potential tenant yourself, this could mitigate the compensation, so this could be something to consider, too.

In reality, there is nothing in law that can legally protect you but common sense should prevail. That is why if you can explain your current situation to the landlord, I am sure a compromise could be found.

Mario Volpi is head of brokerage at Novvi Properties and 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 [e-mail]