Additional clauses in apartment tenancy agreement - Dubai rental

[matlee]

Hi,

I am very new to Dubai and in amidst of signing tenancy contract for leasing an rental apartment in Bur Dubai.
One of the additional clause mentions " The tenancy lease will be renewed at prevailing market price at the date of renewal as agreed subject to variation"
Agency states that this market price & variation and is pertaining to rental laws where the annual rental increment is limited to 5% after two years of lease and is quite standard.
Please advice if this should be a cause of concern. Your comments are appreciated a lot!!
Thanks

 

[mpat]

agency should mention in the tenancy agreement that average market price prevailing is 5% at present.which is subjected to change by government.

 

[matlee]

Thanks!! Mpat,

I will request the agency to include the remark.

However with prevailing situation..guess I do not have much choice, except to accept it ...if they choose not to include the remark.

Matlee

 

[matlee]

hi again,

WRT to above, the agency agreed to modify the clause to as follows:
" The tenancy lease will be renewed at prevailing market price at the date of renewal as agreed subject to variation according to prevailing UAE rental laws"

I guess that should be in order.

Thanks!!

 

[Roshan]

Hi,

I am very new to Dubai and in amidst of signing tenancy contract for leasing an rental apartment in Bur Dubai.
One of the additional clause mentions " The tenancy lease will be renewed at prevailing market price at the date of renewal as agreed subject to variation"
Agency states that this market price & variation and is pertaining to rental laws where the annual rental increment is limited to 5% after two years of lease and is quite standard.
Please advice if this should be a cause of concern. Your comments are appreciated a lot!!
Thanks

Do not sign until you take the attorney's opinion. Once you have signed, then it becomes a legal binding.

Sadly the demand is more than supply. You can highlight that any increase will be as per UAE laws.

Roshan