Rent Law in Dubai

Jan 10, 2022

The residential options in Dubai vary to suit and satisfy the requirements and desires of everyone, whether they are large or small families or individuals. However, searching for a rental property in Dubai is not an easy task. Firstly, the appropriate location must be chosen, which varies according to the individuals' requirements and needs. Then we move on to the rent and its value. Before discussing any of these points, it is necessary to be familiar with the tenancy law in Dubai.

Tenancy Law in Dubai

The Real Estate Regulatory Agency regulates the rental decrees and rules in Dubai, which are concerned with coordinating the relationship between the landlord and the tenant and work to resolve disputes between them if they arise, in addition to determining the percentage of rent increase in Dubai.

Laws Regulating Rental Contracts in Dubai

There are 4 main laws that regulate and govern the form of the lease contract and specify its terms, which are:

Law No. 26 of 2007: Regulates the relationship between landlords and tenants in Dubai
Law No. 33 of 2008: Is the amended and new version of Law No. 26 and works to regulate the relationship between the landlord and the tenant
Law No. 43 of 2013: Governs and regulates rent increases in Dubai, according to the following provisions:
- No increase in the rental value of the property if its rent is less than 10% of the average rent
- 5% of the rental value of the property if its rent is less than 11% - 20% of the average rent
- 10% of the rental value of the property if its rent is less than 21% - 30% of the average rent
- 15% of the rental value of the property if its rent is less than 31% - 40% of the average rent
- 20% of the rental value of the property if its rent is more than 40% of the average rent
Law No. 26 of 2007: This law established the Rental Dispute Settlement Center, which handles all types of rental disputes in Dubai

Important Information about Lease Contracts

Ensure to read the terms and conditions of the lease contract before signing it
The lease contract must be registered with the Real Estate Regulatory Agency through the Ejari application, to ensure that the property is not rented out again
If the lease term ends and the tenant continues to occupy the property without objection from the landlord, the lease contract is automatically renewed for the same period or for one year, whichever is less
The transfer of property ownership from one owner to another does not affect the rights of the tenant and the continuity of the lease contract
Either party to the contract must be notified 90 days before the contract expiration date if the landlord or tenant wishes to amend the contract terms
No fees are allowed to be imposed for lease contract renewal
The tenant must not be deprived of services

Lease Contract Termination Conditions

Before the End of the Lease Term

Failure to pay the rent within thirty days from the notification date unless otherwise agreed by the parties
Making changes to the property in a way that affects its safety or causes damage to it
Subleasing the property without the landlord's consent
The tenant using the property or allowing others to use it for an unlawful purpose or in violation of public order or public morals
Using the property for a purpose other than that rented for
The tenant's failure to comply with legal obligations or any contract terms
The demolition of the property for urban development purposes by the competent authorities

Upon the Expiration of the Contract Term

The owner's desire to demolish it for reconstruction, and the tenant's priority to return to the property within a month from the date of the landlord's notification
The property needs renovation, and this cannot be done with the tenant in place
The owner's desire to reside in it personally or for one of the immediate family members up to the first degree to reside in it, provided that the property is not re-rented until one full year has passed since the termination of the lease contract
The owner's desire to sell the property

The owner must provide the other party with a written notice lasting 12 months through registered mail or a public notary.

Tenant Responsibilities

Payment of rent on time
The tenant is not allowed to make any alterations or maintenance to the leased property without obtaining the owner's approval and the relevant permits from the competent authorities
The tenant's obligation to deliver the property to the landlord in the condition it was received at the beginning of the lease contract
The tenant is prohibited from assigning the property or subleasing it without the landlord's written consent

Rental Disputes

Law No. 26 of 2007 deals with all matters related to resolving rental disputes. This decree grants the Rental Dispute Settlement Center the authority to consider and adjudicate disputes professionally and transparently in a manner that ensures the highest levels of justice, by establishing a specialized judicial system to handle this type of disputes quickly and straightforwardly, with the aim of achieving social and economic stability for all involved in the real estate rental sector and related sectors.

Thus, we have provided a clear and detailed overview of the tenancy law in Dubai and all related articles and decrees. Follow us on the Skyloof blog in Arabic to stay updated on everything new in the real estate world.