My client rents an office space in Deira. He recently got a new office elsewhere in Dubai and gave 30 days vacating notice (tenancy ends in 30 days) to Landlord to vacate the premises. The landlord refuses to accept the vacating notice and say tenancy contract mentions 90 days notice otherwise contract to be renewed for one year. Please advise what shall the tenant do? Does the Landlord have the right to demand renewal for one year? The tenant has also offered 2 months penalty but still landlord refuses. Please advise.
It is both parties’ responsibility to inform each other of any changes to a contract, giving 90 days notice of the same. However, in this case, the tenant can effectively break the contract by normally giving a 2 months penalty. A compromise has to be reached. The landlord is correct that not enough notice has been given but as this is the case the tenant is also correct by offering the 2 months as compensation.
In my opinion, it would not be worth the landlords while to open a case at the Rental Committee as they would most likely agree to accept the penalty term of 2 months’ rent from the tenant which he is happy to offer now. The key is to convince the landlord to accept the penalty clause of 2 months’ rent.
I hope this has helped.
The above answer has been brought to you by Mario Volpi who is the Managing Director of Ocean View Real Estate in Dubai. Mario has 30 years of property industry experience in Dubai and London.
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