Rent-Free & Grace Period Registration: Including an Ejari Grace Period in Your Contract
Can I include a rent-free grace period in my Ejari? Yes, absolutely. However, the system does not have a dedicated Grace Period button. Instead, an Ejari grace period is legally recognized by adjusting the lease start and end dates to reflect the extra time. For instance, the contract should be registered for 13 months (January 1st to January 31st of the following year) if the landlord offers a month free on a typical annual lease, but the overall rent amount should stay the same as the 12-month value. This guarantees the tenant’s legal protection for their entire stay, including the complimentary month.
Landlords usually provide lease incentives that Dubai residents adore, like a 13th-month free or an early move-in time to arrange furniture, in the city’s competitive rental market. Although these deals are very cost-effective, if they are not properly documented, they may cause problems for rent-free registration. In the event of a disagreement, a verbal agreement that “the first month is free” is not legally enforceable. In order to ensure that your Ejari grace time is recorded in black and white on your official certificate, this article provides detailed instructions on how to formally implement these incentives.
The Mechanics of Registering a Grace Period
It’s risky to register a 12-month contract and then simply stay longer. This is the most common mistake. If you are still occupying the property during the 13th free month, even though your Ejari has expired after 12 months, you are theoretically overstaying without a legitimate legal cover.
How to Do It Right
To register an Ejari grace period, you must extend the tenancy period in the system.
- Standard Lease: 12 Months (Jan 1, 2026 – Dec 31, 2026).
- With Grace Period: 13 Months (Jan 1, 2026 – Jan 31, 2027).
The team at Ejari advises tenants to ensure the Total Contract Value reflects the agreed annual price. If the rent is AED 100,000 for the year, plus one month free, the Ejari should state:
- Term: 13 Months.
- Annual Rent: AED 100,000. This confirms that the extra month is indeed a rent-free registration and not a billing error.
Contract Start Date Rules: The “Early Move-In”
Another common scenario involves contract start date rules. Often, a landlord will allow a tenant to move in 5 days early to paint or move furniture.
- The Trap: Since you don’t have a valid contract for those 6 days, you can’t activate DEWA (electricity) if you move in on January 25th, but your Ejari starts on February 1st.
- The Fix: These initial days should be covered by the grace period of Ejari. Although the first rent payment check can still be dated February 1st, the contract start date should be January 25th.
You can make sure your utility connection is lawful from the minute you walk through the door by accurately adjusting the dates within the contract start date guidelines.
The AED 0 Dilemma: Does the System Accept Zero?
Can I enter AED 0 for the first month? is a common question from tenants. The short answer is no. The entire contract value is determined by the Ejari mechanism. Usually, the basic registration fields don’t break down rent per month.
Instead of trying to input AED 0, you must use the tenancy contract clause section.
- The Clause: You should explicitly write: “The period from Jan 1 to Jan 31 is a rent-free grace period of Ejari. Rent payment covers the period from Feb 1 to Jan 31.”
- The Cheques: The dates of the checks will be displayed in the system along with your payment schedule. The system considers this gap as financial evidence of the grace period if the first check is dated one month after the commencement date.
The staff at Ejari can assist you in creating the appropriate tenancy contract provision to guarantee a smooth approval if you are unclear how to format this, so the system will not reject it.
Lease Incentives Dubai: Renewal Implications
Dubai landlords provide great lease incentives for the first year, but they may confuse renewal. When the tenant anticipates that the Ejari grace period will continue into the second year, this is a common source of conflict.
Does the Grace Period Renew?
Usually, no. Unless stated otherwise, a grace period is a one-time incentive.
- The Risk: The landlord may switch back to a 12-month contract for the second year if your first one was 13 months. Even if the annual check amount remains the same, this essentially increases your monthly average expense.
- The Law: Rent increases are determined by RERA using the annual value rather than the monthly breakdown. Accordingly, the calculator does not view losing your Ejari grace period in the second year as a “rent hike”; rather, it merely marks the end of an incentive.
Legal Proof of Rent-Free Periods
Why is it so important to register the Ejari grace period officially? Imagine the landlord sells the apartment halfway through your lease. The new owner looks at the Ejari and sees it expires in December. You claim, “But I have a free month until January!”
Without the Ejari grace period clearly defined in the registered dates or the tenancy contract clause, the new owner has every right to ask you to vacate in December. A verbal promise from the old landlord does not transfer to the new one. Only the registered Ejari certificate protects your right to that extra month.
Calculating the True Cost
When comparing rental options, understanding the math behind the Ejari grace period helps you find the best deal.
- Option A: AED 100,000 for 12 months = AED 8,333/month.
- Option B: AED 105,000 for 13 months (12 + 1 free) = AED 8,076/month.
Despite having a greater cheque fee, Option B ends up being less expensive because of the rent-free registration. If you can’t decide between two properties, always ask the Ejari team to help you figure out the effective monthly rate.
Conclusion
Including an Ejari grace period is a smart way to maximize your rental value, but it requires careful attention to detail. It isn’t just about getting a free month; it’s about ensuring that month is legally yours, recognized by the government, and protected against ownership changes or disputes.
You can enjoy your lease incentives Dubai-style without worrying about anything if you modify your contract dates, make sure the tenancy contract clause is well-defined, and understand the laws of the start date of the contract.
Are you confused by the dates? To make sure your rent-free term is properly documented and enforceable, get in touch with the Ejari team.
FAQs
Can I get an Ejari grace period on a renewal?
Yes, if the landlord agrees. However, it is less common on renewals. You must explicitly request to extend the dates for another 13 months during the renewal registration.
How do I enter 13 months’ rent for the price of 12?
You simply set the “Contract End Date” to be 13 months after the “Start Date” in the system, while keeping the “Annual Rent Amount” field equal to the 12-month price.
Does the system accept AED 0 for the first month?
No, the system tracks the total contract value. You cannot enter “0” as a monthly rent. You must reflect the free period via the start/end dates and cheque dates.
Is a handwritten note about the free month valid?
No. For the Ejari grace period to be enforceable by the Rental Dispute Center, it must be typed into the “Terms & Conditions” of the registered Ejari contract.
