Renewing a lease contract is a routine process for tenants, but one common question often arises: “Do I need to pay rent renewal agent fees when renewing my lease contract?”. The answer largely depends on the specific terms of your agreement and the practices in your emirate. Across the UAE, lease renewals have been made simpler with online platforms and clear regulations, making it possible for tenants and landlords to handle renewals without involving property agents.
Let’s explore the procedures for renewing lease contracts in Dubai, Abu Dhabi, Sharjah and Ajman.
Understanding Agent Fees
In the UAE, real estate agents typically charge a fee of 4-5% of the annual rent when facilitating a tenancy contract. According to UAE law and Dubai Land Department regulations, agents are entitled to a fee only when a tenancy contract is initially signed. No clause mandates agents to charge fees for renewals unless explicitly stated in the contract. Tenants should carefully review their agreements to avoid unnecessary charges.
Renewals Without an Agent
Whether you’re managing your lease independently or through a professional, understanding the rules is key to avoiding extra charges like rent renewal agent fees.
Since most renewal transactions can be done online or directly between landlords and tenants, involving an agent is often unnecessary. If your lease doesn’t specify an agent’s fee for renewal, you can save significantly by bypassing this step.
Lease Renewal Procedures Across the UAE
Lease renewal processes vary across emirates in the UAE, but they share the goal of ensuring tenants and landlords can renew contracts efficiently while safeguarding their rights. Below is a detailed breakdown of the procedures for Dubai, Abu Dhabi, Sharjah and Ajman.
1. Lease Renewal in Dubai
Dubai’s lease renewal system is streamlined, thanks to digital platforms and service centres that facilitate quick transactions.
Channels for Renewal
- Dubai REST App
- Ejari System
- Real Estate Services Trustee Centres
Steps to Renew
- Prepare Documents:
- A copy of the unified tenancy contract.
- Emirates ID or official power of attorney (if required).
- Submit Application: Through the app, system or a trustee centre.
- Pay Fees:
- Online: AED 100, plus AED 10 for knowledge and innovation fees.
- Trustee Centres: AED 120, plus AED 95 + VAT for service partner fees.
- Upon approval, the renewed tenancy contract and a registration certificate will be issued.
Time Duration
- Immediate for online submissions.
- Approximately seven minutes at trustee centres (excluding waiting time).
2. Lease Renewal in Abu Dhabi (TAMM)
Abu Dhabi facilitates lease renewals through the TAMM platform or its application, emphasising simplicity and transparency.
Steps to Renew
- Log in using UAE PASS for secure access.
- Submit Documents:
- Passport.
- Municipality permits.
- Supporting documents, if applicable.
- Pay AED 50 as the renewal fee.
- Once approved, the renewed tenancy contract is issued within one working day.
Special Terms
- Property owners must be registered in the Tawtheeq system.
- Additional fees apply for long-term leases or government land leases.
3. Lease Renewal in Sharjah
Sharjah’s lease renewal system is heavily digitised, with robust safeguards to ensure compliance with legal standards. The lease contract renewals are handled via the Sharjah Municipality E-system which is an online portal for the Sharjah government.
Steps to Renew
- Fill in the required fields on the e-system platform.
- Upload supporting documents, such as tenancy contracts and payment receipts.
- Pay fees via Tahseel cards or credit cards.
- The electronically ratified tenancy contract is issued and recognised by local authorities.
Key Conditions
- Only licensed real estate offices with proper trade licences can manage tenancy renewals.
- Misuse of the e-system may result in penalties, including fines or legal actions.
4. Lease Renewal in Ajman
Ajman offers a well-regulated process aimed at preserving tenant and landlord rights. The lease renewals are handled via the Ajman Municipality Website.
Steps to Renew
- Fill out and submit the renewal request through the official website.
- Applications are reviewed and approval is typically granted within one business day.
- Fees are paid electronically via the website.
- Once processed, the authenticated tenancy contract is issued.
Fee Structure
- Residential: 2% of the lease value (minimum AED 400 for non-nationals).
- Investment: 3% of the annual lease value (minimum AED 1,000).
- Commercial: 5% of the annual lease value (minimum AED 500).
Required Documents
- Authentication form
- Tenant’s passport and ID
- No-objection certificate (NOC) from Ajman Sewerage
FAQs
A new landlord can evict tenants only on legal grounds, such as property demolition or personal use, with a 12-month notice via a notary or registered mail. Tenants can challenge unfair evictions through the Rental Dispute Centre (RDC).
Yes, rent increases must follow the RERA Rent Calculator guidelines and require a 90-day notice. Caps apply based on how the current rent compares to market rates.
The Rental Dispute Settlement Centre (RDSC) resolves conflicts like evictions or rent increases. Tenants can file disputes online or at the Dubai Land Department.
Lease renewal processes across the UAE are designed to protect the interests of both tenants and landlords while minimising unnecessary costs. Knowing your rights and the procedures in your emirate can help you navigate the process confidently and save money. Moreover, it is important to read through the fine print of the tenancy contract for rent renewal agent fees, otherwise, there is no need to pay it.
It is important to know the rental laws in Dubai if you plan to rent a property in this emirate. Similarly, it is equally important to understand the rental laws in the emirate where you reside.
For more on tenant and landlord rights in a tenancy contract, stay connected with the Property Finder blog.
