A. (1) Law No. 26 of 2007 regulating relationship between landlords and tenants in the Emirate of Dubai; (2) Law No. 33 of 2008 amending some provisions of Law No. 26 of 2007 regulating relationship between landlords & tenants in the emirate of Dubai; (3) Decree No.2 of 1993 establishing special judicial committee for settlement of disputes between landlords and tenants; (4) Decree No.2 of 2011 regulating rentals in Dubai; and (5) Decree No. 26 of 2013 establishing the Dubai Rent Dispute Settlement Centre as part of the Dubai Land Department in the emirate of Dubai are the laws which deal with rights and obligations of tenants in relation to their tenancy contract.
A. Tenancy contract (or Lease) is a brief/ standard contract containing terms and conditions which govern the relationship between landlord and tenant. The tenancy contract should include the description of the property in details, purpose of the tenancy, period of tenancy, amount of rent and any other terms which may be agreed on between tenant and landlord at the time of contracting. In practice, an addendum (which contains further terms and conditions of the relationship) is recommended to be attached to the tenancy contract.
A. Yes. It is mandatory for either the landlord or tenant to register the tenancy contract with Real Estate Regulatory Agency (RERA) by submitting the required documents along with the prescribed fee. Registering the contract also ensures that the same property is not rented out twice at the same time. If the tenancy contract is not registered, any dispute arising out of or in relation to such tenancy contract shall not be entertained by the Dubai Rent Dispute Settlement Centre (formerly “Rent Committee”).
A. Yes, otherwise, tenancy contract shall be deemed as valid for the period specified for payment of the rent.
A. If the tenancy contract is due and valid, it cannot be unilaterally terminated by the landlord or the tenant, unless both parties agree on such termination or in accordance with the provisions of the law.
A. RERA shall have the exclusive authority to specify percentage of rent increase in Dubai, with regard to economic circumstances. The RERA website also provides for a rental increase calculator for calculating the increase in rent as permissible by law.
A. A tenant shall pay rent to the landlord on the dates agreed in the tenancy contract. However, if there is no such agreement, the rent shall be paid in annual four equal installments to be paid in advance. Such payment is usually made by depositing post-dated cheques with the landlord. However, if the landlord refuses to receive the rent, the tenant may inform RERA and deposit the rent with RERA.
A. Yes. Upon expiry of the tenancy contract, both landlord and tenant may amend any of the contract’s
terms including rent provisions.
If the parties do not reach an agreement on rent, Rent Committee may decide fair rent considering similar market rent in the same area or/ and any other factors Rent Committee may decide.
A. If either party desires to amend any of the provisions of the tenancy contract, then that party must notify the same to the other party not less than 90 days prior to the expiry date of the contract unless otherwise agreed between the parties.
A. In relation to the tenancy, the landlord shall: (i) be responsible for handing over the subject property to the tenant in good condition unless agreed to lease uncompleted property; (ii) be responsible for undertaking major maintenance of the property and rectify any defects or faults (major maintenance is described as maintenance of the structure of the property, drainage, major plumbing, pumping equipment, boiler, sanitation and electrical installations, A/C), unless the two parties agree otherwise; (iii) not make any change in the property, its utilities or ancillaries affecting the intended benefit; (iv) provide tenant with all approvals required by competent authorities in the emirate if he wishes to execute decoration works, or other works, that require such approvals.
A. In relation to the tenancy, the tenant shall: (i) pay rent on due dates and preserve the property as his own property; (ii) not make any changes, renovations or maintenance works without landlord’s permission, after obtaining necessary approvals from competent authorities; (iii) return the property to landlord in the same condition as handed over to him at the time of contracting except for normal wear and tear or for reasons beyond his control; (iv) pay (unless otherwise agreed) all fees and taxes due to government authorities for benefiting from the property, in addition to any other fees or taxes due for subleasing; (v) not (unless otherwise agreed), upon vacating the property, remove any fixed improvements.
A. Unless otherwise agreed in the tenancy contract, the tenant shall not assign the benefit or sublease the subject property without obtaining landlord’s prior approval.
A. Landlord may demand eviction of the tenant prior to expiry of tenancy period if: (i) tenant fails to pay the agreed rent within 30 days of landlord’s notification for payment; (ii) tenant subleases the property without landlord’s written approval; (iii) tenant uses or allows others to use the property for illegal or immoral activities; (iv) tenant causes or allows others to cause damage or changes to the property that endangers safety of property; (v) tenant uses property for purposes other than purpose for which it was leased for; (vi) property is in danger of collapse; (vii) in general, tenant fails to comply with his
contractual obligations even after 30 days’ notification from landlord.
A. Landlord may demand eviction of tenant upon expiry of tenancy contract if: (i) he wishes to demolish
or reconstruct or development requirements in Emirate require demolition and reconstruction of the property; (ii) the property requires renovation or comprehensive maintenance; (iii) he wants to use the property for his personal use or for his next of kin of first degree. However, the landlord must provide the tenant with 12 month’s written notice prior to determined date of such eviction.
A. If landlord or tenant dies, the tenancy relationship shall devolve to their heirs, unless tenant’s heirs decide to terminate that relationship. However, such termination shall be effective according to the applicable procedures upon proper notification to the landlord.
A. If the tenancy contract has a fixed date, the transfer of title of the subject property to a new landlord shall not affect tenant’s right to continue occupation of the property in accordance with the tenancy contract signed with the previous landlord.
A. All disputes in relation to tenancy contract shall be referred to Rent Committee who shall have exclusive jurisdiction to deal with such disputes.
A. The applicable fee for filing a claim before the Rent Committee is 3.5% of the claimed amount up to a maximum of AED 15,000/- for rent claim suits and AED 20,000/- for termination of lease.
A. At the time of entering into a lease, the tenant should (i) carefully examine the title deed of the property issued by the Dubai Land Department to ensure that the landlord is the rightful owner of the property; (ii) should obtain proof that the real estate agent (if any) is registered with Real Estate Regulatory Agency; and (iii) ensure that the payment of rent is made to the correct person (either landlord or his agent) according to proper legal document.
For more information about this article, please contact Ashraf El Motei at a.motei@motei.com
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