Lease gets renewed automatically when the tenant continues to occupy the real estate without the owner's objection
Lease gets renewed automatically when the tenant continues to occupy the real estate without the owner's objection
22 February 2020The Dubai Land Department reported that the tenant's occupancy of the property, despite the expiry of the lease, and without objection from the landlord, entitles him to automatic renewal of the contract.
DLD pointed out, “in the aforementioned case, the lease shall be renewed for another period similar to the previous term of the lease or for a period of one year, depending on whichever is shorter”, pointing out “the tenancy contract gets renewed based on the terms of the previously signed lease”. DLD called for "the importance of the tenants and owners on following the regulatory standards pertinent to lease renewals, which are agreed between the parties shortly well before the lease expires, in order to prevent any confusion about the renewal process, and to give the tenant opportunity in case of disagreement to find an alternative property.
The Land Department calls on tenants to inquire about any circumstances related to the regulation of leasing process, and also owners and investors to make appropriate decisions regarding their real estate properties and investments, with the service provided by the RERA through requesting data and specific real estate statistics, to be used to make any decisions related to their actions."
The Dubai Rental Disputes Center, the judicial arm of the Land Department, had previously confirmed that the tenant must hand over the leased properties back to the owner or his agent, at the end of the lease, stressing the need to discharge his liabilities by obtaining proof of his hand over of the residential unit.
The RDC noted that by not handing over the key to the owner or his/her representative, the tenant is at risk of having the lease renewed automatically.
The RDC called on tenants to abide by the rental law and its associated regulations and legislations, in order to avoid any dispute with the landlord, which could lead to accountability, and punitive and irregularity measures.
