Property Dubai: How to Amend a Lease Agreement if the Tenant

Amending a lease agreement can sometimes be less straightforward, especially if the tenant is unresponsive. This article will guide you through the steps to ensure the tenancy continues smoothly, even when faced with communication challenges.

Automatic Renewal

Dubai’s real estate market is regulated by a set of laws to protect both tenants and landlords. The primary regulatory body overseeing tenancy issues is the Dubai Land Department (DLD), which enforces the Dubai Tenancy Law.

Under the Dubai Tenancy Law, the tenant has a right to automatically renew its lease unless the landlord objects to the renewal only on limited grounds, such as if the property needs extensive repair and renovation works which cannot be executed while the tenant is occupying the property, if the owner wants to sell the property or wants to demolish it or add new buildings or if the owner requires the property for personal use or for first-degree relatives.

If the landlord intends to evict the tenant on any of the above grounds, the landlord will still need to provide the tenant with a notice of eviction through a Notary Public at least twelve months before the scheduled eviction date. The notice should clearly mention the ground on which the landlord relies for the tenant’s eviction.

Amending the Lease Terms

According to the Dubai Tenancy Law, if a landlord or tenant intends to change any lease agreement terms (such as a rent increase), they must provide 90 days’ notice before the lease agreement expires.

It is important to start the amendment process early as it allows ample time to negotiate any changes in the lease terms. Early initiation also provides a buffer period to address any issues that may arise, such as unresponsive tenants or disagreements over new terms. By being proactive, landlords can avoid the stress and uncertainty of last-minute arrangements.

Keep a meticulous record of all your attempts to communicate with the tenant. Document every email, message, and phone call, noting the date, time, and content of each attempt.

Sameer A. Khan

Founder & Managing Partner SK Legal

Unresponsive Tenant: Steps to Take

Amending a lease agreement in Dubai can present several challenges that landlords must handle carefully. One of the most common issues is dealing with unresponsive tenants.

Take the following steps when a tenant doesn’t respond:

Step 1: Review Your Lease Agreement

Thoroughly review your existing lease agreement. This document is critical as it outlines the tenancy terms and conditions, including the lease amendment clauses.

Step 2: Document All Communication Attempts

Keep a meticulous record of all your attempts to communicate with the tenant. Document every email, message, and phone call, noting the date, time, and content of each attempt. This record serves as evidence that the landlord made reasonable efforts to reach out to the tenant.

In case of a dispute or if legal action becomes necessary, this documentation can support the landlord’s case and show that the landlord acted in good faith throughout the process. It’s also helpful to use multiple communication channels, such as emails, text messages, and phone calls, to maximise the chances of receiving a response.

Step 3: Send a Formal Notice

If the tenant still remains unresponsive, the next step is to send a formal notice. When drafting the formal notice, clearly state the proposed terms. When sending the formal notice, choose reliable methods that provide proof of delivery.

Registered mail and email are recommended; they offer documentation that the notice was sent and received. Registered mail provides a physical record and can be tracked, while email offers a digital trail. Sending the notice through multiple channels can increase the likelihood of it being acknowledged.

Role of the Dubai Rental Dispute Settlement Centre (RDC)

RDC deals with rental disputes between landlords and tenants over real estate located in Dubai, including the free zones. When communication with your tenant breaks down, RDC can help resolve disputes. The Reconciliation Department of RDC helps the parties explore the possibility of settlement.

In the event the dispute is settled, a reconciliation agreement is signed by the parties, which has the power of an executive instrument. The case is moved to the First Instance department if a settlement is not reached.

If the landlord and tenant fail to reach an agreement on a rent increase, a landlord may file an application to RDC seeking an assessment of the fair rent of the leased premises. In doing so, RDC will take into account the percentage of rent increase prescribed by RERA as well as the condition of the leased premises.

Consulting with a Real Estate Lawyer

Consult with a real estate lawyer if you’re facing an unresponsive tenant during the lease amendment process. A lawyer specialising in real estate, such as SK Legal Consultants, can provide valuable guidance on your rights and obligations. They can help you understand the legal intricacies of your lease agreement, ensuring you are fully informed about the terms and conditions.

Conclusion

Lease amendments in Dubai can be challenging, especially when faced with an unresponsive tenant. By being prepared and informed, you can efficiently manage lease amendments. In the event a dispute is not resolved amicably, the landlord can approach RDC, which helps facilitate the speedy resolution of rental disputes.