Processing Lease Renewals: The 90-Day Strategy

Renewals are your easiest deals—but timing is everything. Start 90 days early to avoid costly vacancy gaps and give both parties time to plan.

Why Renewals Matter

Economics:

New tenant: 1-2 months to find + prepare
Vacancy loss: AED 15,000-20,000 per month
Marketing costs: AED 2,000-5,000
Renewal: Near-zero cost, zero vacancy

Business Case: Even with modest rent increase, renewal is always more profitable than turnover.

Step 1: The 90-Day Early Alert

TenancyDesk automatically alerts you: "Contract expires in 90 days - Initiate renewal discussion"

Why 90 Days?

UAE Law requirement: 90-day notice for non-renewal
Tenant needs time to consider and find alternative if declining
You need time to market property if tenant leaves
Rent increase discussions take time

Immediate Actions (Day 1):

Review current deal performance:
- Payment history (always on time? late?)
- Maintenance requests (high-maintenance tenant?)
- Complaints (neighbor issues?)
Decide: Do you WANT to renew with this tenant?
Check market rates: Is current rent below/above market?

Step 2: RERA Rent Increase Calculator

Critical Compliance: Dubai Decree No. 43 of 2013 caps rent increases.

How It Works:

Current Rent vs. Market Rent Difference:

0-5% below market → NO increase allowed
6-10% below market → Max 5% increase
11-20% below market → Max 10% increase
21-30% below market → Max 15% increase
31%+ below market → Max 20% increase

Example Calculation:

Current Situation:

Your rent: AED 95,000/year
RERA market rate (Marina 1BR): AED 110,000/year
Difference: AED 15,000 (15.8% below market)

Permitted Increase: Max 10% = AED 9,500 New rent ceiling: AED 104,500/year

TenancyDesk Calculator: Go to deal → Renewals tab → "Check RERA Limits" System shows: "Permitted increase: AED 9,500 (10%)"

Violation Consequences:

Tenant can file case at Rental Dispute Center
You'll be forced to reduce rent to legal limit
Potential fines
Damaged landlord-tenant relationship

Pro Tip: Stay within limits even if tenant agrees to higher increase. Verbal agreement doesn't override law.

Step 3: Renewal Offer Letter

Send Professional Offer:

Template:

Subject: Lease Renewal Offer - [Property Address]

Dear [Tenant Name],

Your current lease expires on [End Date]. We value you as a tenant and would like to offer renewal under the following terms:

Renewal Terms:
- Annual Rent: AED 104,500 (current: AED 95,000)
- Increase: AED 9,500 (10% - within RERA limits)
- Contract Duration: 12 months
- Start Date: [New Start Date]
- Payment: 4 cheques (quarterly)

This offer is valid until [Deadline - typically 30 days].

To accept, please confirm by [Date]. We'll then prepare the new contract.

Best regards,
[Your Name]

Delivery Method:

Email (formal record)
WhatsApp (faster response)
Both (recommended)

Response Deadline: 30 days (gives tenant time, but not too long)

Step 4: Create Renewal Deal

If Tenant Accepts:

In TenancyDesk:

Go to original deal
Click "Create Renewal Deal"
System creates new deal with:
- All tenant information pre-filled
- All owner information pre-filled
- Property details copied
- Documents carried forward (if still valid)
Update rental terms:
- New rent: AED 104,500
- New start date: January 1, 2026
- New duration: 12 months
Check document expiry dates:
- Emirates ID still valid?
- Visa still valid? ️ Expires in 2 months → Request updated copy
- Title deed same?

Time Saved: Renewals pre-fill from the prior deal, so you avoid re-entering most details from scratch.

Step 5: New Contract + New Ejari

Critical: Renewal requires NEW Ejari registration (old one gets cancelled).

Contract Updates:

New start/end dates
New rent amount
New payment schedule
Keep same terms for: deposit, maintenance, utilities

Ejari Process:

Upload new signed contract
Verify all documents still valid
Run Ejari readiness check
Visit typing center with:
- New contract
- All documents (even if unchanged)
- Previous Ejari certificate (for reference)
Pay AED 220 + typing fees
Old Ejari auto-cancelled when new one registered

Common Mistake: Assuming old Ejari continues → It doesn't. Always need new registration.

Step 6: If Tenant Declines

Graceful Exit Process:

Day 1-7: Tenant gives official notice (ideally 90 days early)

Day 7-60: Marketing period

List property on Bayut, Property Finder, Dubizzle
Schedule viewings
Find new tenant

Day 60-85: New deal process

New tenant found
Documents collected
Contract signed
Payment received

Day 85-90: Transition

Current tenant moves out
Property inspection
Security deposit refund (14 days max)
Cleaning/minor repairs

Day 90: New tenant moves in (ZERO vacancy gap)

Why 90 Days Matters: This timeline is only possible if you start early.

Step 7: Security Deposit Handling

For Renewals:

Option A: Keep Existing Deposit

Same deposit amount continues
No refund/re-collection needed
Add clause to renewal contract: "Security deposit from original contract (AED 5,000) continues to secure new contract"

Option B: Adjust Deposit

If rent increased significantly, you may want higher deposit
Refund old deposit (AED 5,000)
Collect new deposit (e.g., AED 5,500)
More work, but proportional to new rent

Most Common: Option A (keep same deposit, less hassle)

Renewal Negotiation Tips

If Tenant Resists Rent Increase:

Tactic 1: Show RERA Calculator

"I'm legally allowed to increase by 10% (AED 9,500)"
"I'm only asking for 5% (AED 4,750)"
"This is below maximum permitted"

Tactic 2: Highlight Market Rates

"Similar units in this building are now renting for AED 110,000"
"You're getting below-market rent even with increase"

Tactic 3: Offer Incentives

"Accept the increase and I'll repaint the apartment"
"I'll upgrade the AC unit"
"I'll cover one DEWA bill"

Tactic 4: Split the Difference

Proposed: AED 9,500 increase
Tenant wants: AED 5,000
Compromise: AED 7,250 increase
Both sides feel they negotiated

Bottom Line: Keeping good tenant is usually worth small concession.

Next Steps

Enable 90-day renewal alerts in TenancyDesk
Review upcoming expirations (Reports → Expiring Contracts)
Check RERA rent index for your properties
Prepare renewal offer templates