Who Pays for Ejari Renewal?
Introduction
In Dubai, renewing the Ejari registration is as important as the initial registration to keep tenancy agreements compliant with RERA (Real Estate Regulatory Agency) regulations. An expired Ejari can cause disruptions, particularly in utility services, visa renewals, and legal processes.
However, a common question arises: Who pays for Ejari renewal costs? Is it the tenant, landlord, or someone else? This guide clarifies who is responsible for Ejari renewal fees, explains common practices, and offers solutions for potential disputes.
Who Is Responsible for Paying Ejari Renewal Fees?
The responsibility for Ejari renewal costs, like the initial registration, is typically determined by mutual agreement. However, the general practice in Dubai follows these guidelines:
1. The Tenant’s Responsibility
In most cases, tenants are responsible for paying Ejari renewal fees. This is widely accepted because the Ejari certificate directly benefits the tenant, especially for processes like utility services and visa renewals.
Why Do Tenants Usually Pay?
DEWA Services: An updated Ejari certificate is required to continue or transfer water and electricity services through DEWA.
Visa Renewals: Expats must present a valid Ejari certificate when renewing their residency visas or sponsoring family members.
Ongoing Tenancy Obligations: Tenants are expected to maintain compliance throughout their lease period.
Example Scenario:
When a lease is renewed for another year, the tenant typically pays the Ejari renewal fees to ensure continued access to DEWA services and meet residency visa requirements.
2. When the Landlord Pays
While tenants generally handle Ejari renewals, there are scenarios where landlords may agree to cover the costs:
Mutual Agreement: If it is stated in the tenancy contract that the landlord will bear renewal fees, the landlord becomes responsible.
Incentives to Retain Tenants: Landlords may offer to cover Ejari renewal costs to retain long-term tenants.
Fully Managed Properties: For properties managed by landlords or agencies, renewal fees may be included as part of the management service.
Example Scenario:
To encourage the tenant to renew the lease, the landlord agrees to pay the Ejari renewal fee as part of their tenant retention strategy.
3. Real Estate Agents and Property Managers
In some cases, a real estate agent or property manager handling the property on behalf of the landlord may facilitate the renewal process. However, the fees are typically passed on to the tenant or landlord, depending on the terms outlined in the tenancy agreement.
Agent’s Role:
Complete the renewal process on behalf of the tenant or landlord.
Clarify who is responsible for the fees during lease negotiations.
Important Note: Agents may charge a service fee in addition to the Ejari renewal cost for handling the process.
What Does Ejari Renewal Cost?
While the exact cost can vary slightly, Ejari renewal fees typically range between 200-250 AED, depending on where the process is completed—either online or through an authorized typing center.
Who Pays for Service Fees?
If an agent or property manager processes the renewal, any additional service fees are usually borne by the party that requested the service.
How to Avoid Ejari Renewal Disputes
To ensure there are no misunderstandings, here’s how to handle payment responsibilities for Ejari renewal:
Clarify Payment Terms:
Discuss and agree on who will pay for Ejari renewal fees before signing or renewing the lease.
Document this agreement in the tenancy contract to avoid disputes later.
Review the Tenancy Contract:
Check if the lease clearly mentions the responsibility for renewal costs.
If the contract is silent on the matter, assume the tenant will pay, as is the standard practice.
Communicate Early:
Tenants should follow up with the landlord or agent well before the lease expiration date to ensure the renewal is processed on time.
Split the Costs:
In some cases, both parties can agree to split the cost as a fair compromise.
What Happens If Ejari Renewal Is Not Paid?
Failing to renew Ejari on time can lead to several issues:
Utility Disruptions:
DEWA services may be delayed or disconnected without a valid Ejari certificate.
Visa Delays:
Expats may face difficulties renewing their residency visas or sponsoring family members.
Legal Non-Compliance:
Landlords risk penalties for failing to maintain Ejari compliance as required by RERA.
Lack of Legal Protection:
Unrenewed Ejari contracts are not legally recognized, leaving both landlords and tenants vulnerable in case of disputes.
How to Renew Ejari?
Ejari renewal can be completed through:
Online Platforms:
Dubai REST App: Available on Android and iOS.
Ejari Portal: Access via the Dubai Land Department (DLD) website.
Authorized Typing Centers:
Visit a registered Ejari typing center with the required documents.
Documents Needed for Ejari Renewal
To renew Ejari, the following documents are required:
Updated Tenancy Contract (signed by both parties).
Tenant’s Emirates ID (or passport with visa page for expats).
Landlord’s Title Deed.
DEWA Premise Number or recent DEWA bill.
Landlord’s Passport Copy (if needed).
Conclusion
In Dubai, the tenant is generally responsible for paying Ejari renewal fees as part of their tenancy obligations. However, landlords may agree to cover the cost under certain conditions, such as retaining tenants or specific contractual agreements.
To avoid confusion, both parties should discuss payment responsibilities before renewing the lease and document the agreement clearly.
For expert assistance with Ejari renewals and smooth tenancy processes, visit Ejari.Support today!
Stay compliant, avoid disruptions, and renew your Ejari on time!