Everything you need to know about Dubai’s tenancy laws

If you have been planning to sign that rental contract and consider yourself a landlord in the world’s finest real estate market - you might want to get up to speed on the city’s tenancy laws.

These laws were created by RERA (Real Estate Regulatory Agency) to manage the relationship between tenants and landlords in Dubai while safeguarding tenant rights and ensuring landlords meet their obligations.

Let us break down these laws, the terms followed, and how rent increases work in Dubai.

What are RERA’s tenancy laws?

Before we dive into the laws, it’s important to know the top six laws and regulations that govern the tenancy laws.

These are:

• Terms of the lease contract
• Rent amount and increases
• Tenant and landlord rights and responsibilities
• Repairs and maintenance
• Subletting, early termination, eviction
• Settling rental disputes

And these laws are covered primarily under the laws of:

1. Law 26 of 2007: This law regulates the relationship between landlords and tenants in Dubai, laying down the foundational principles of tenancy agreements and tenant rights.

2. Law 33 of 2008: An amendment to Law 26 of 2007, this law provides further clarity on the landlord-tenant relationship.

3. Decree 26 of 2013: This decree established the Rental Disputes Settlement Centre (RDC), which handles all types of rental disputes in Dubai, providing a structured platform for resolving conflicts.

4. Decree 43 of 2013: This decree specifically oversees rent increases in Dubai, ensuring that any adjustments to rent are fair and transparent.

What are the different laws of these tenancy contracts?

Register with Ejari

All tenancy agreements must be registered with the Ejari system, this is a RERA initiative that ensures the contract is legally binding and protects the rights of both parties (tenant and landlord).

This contract also helps in maintaining transparency in rental transactions.

Create a standard tenancy contract

RERA provides a standard form for tenancy contracts, which includes essential terms and conditions that are to be met by landlords. Tenants and landlords should ensure that their agreements adhere to this standard to avoid any legal complications.

This includes:

Rental Increases

Rent increases are regulated based on the Rental Price Index published by RERA. This index provides a benchmark for fair rent adjustments. Landlords and tenants can also take the help of a RERA Rental Calculator to identify future rent increases.

Notification Period

In the standard tenancy contract, it is clear that landlords must notify tenants of any rent increase at least 90 days before the lease renewal date. This gives tenants ample time to consider their options and negotiate their rental increase too, if necessary.

Security deposits

Landlords are entitled to request a security deposit, typically equivalent to one month’s rent before the tenant moves in. This deposit serves as a safeguard against any potential damages to the property.

The deposit should be refunded at the end of the lease term, but of course, provided there are no damages to the property. Tenants should ensure they document the property's condition at the beginning and end of the tenancy to avoid disputes.

Maintenance and repairs

If the tenant notices there are any major maintenance and repairs needed throughout the property, these are the responsibility of the landlord. This includes structural repairs and major system failures.

However, minor repairs and day-to-day maintenance are generally the tenant's responsibility. This includes tasks like changing light bulbs, and pipes and maintaining overall cleanliness in the house.

Contractual terms

The most important tenancy law is that the specific responsibilities of both parties should be clearly outlined in the tenancy contract to prevent misunderstandings.

Eviction notices

In the plight of a tenant being evicted from a property by the landlord, it is important to remember that according to Law No. (33) of 2008, it stipulates the conditions under which a landlord can evict a tenant. These conditions are designed to protect tenants from arbitrary evictions.

12-month notice

Landlords must provide a 12-month notice period for eviction, given via a notary public or registered mail. This ensures tenants have sufficient time to find alternative accommodation.

Valid reasons for eviction

Valid reasons for eviction include the landlord selling the property, taking over for personal use by the landlord or their immediate family, or if there are any significant renovation needs.

Rental disputes

The Rental Disputes Settlement Centre (RDC) handles all types of rental disputes in Dubai. If there are any issues faced by a tenant or a landlord, they can go to this centre which will provide them a formal mechanism for resolving conflicts between tenants and landlords.

The centre aims to mediate and resolve disputes in a fair and timely manner.

Rent payment terms

Rent is typically paid in one to four cheques, but this can vary based on the agreement between the tenant and landlord. If the landlord is flexible, he or she can offer the tenant a payment option that also spans monthly or 12 cheques. It’s important to clarify payment terms in the tenancy contract.

What about late payments?

Every tenancy contract outlines the set penalties for late payments. Tenants should adhere to the agreed payment schedule, otherwise they could expect to see interest charges.

What are the general obligations of landlords in Dubai?

Under the RERA property rent law, landlords in Dubai have specific obligations and these are:

Article 15: Landlords must ensure the property is in good condition and fully usable by the tenant according to the contract.

Article 16: Unless otherwise stated in the agreement, landlords are responsible for maintaining, repairing, and addressing any faults, defects, or wear and tear on the property throughout the lease term.

Article 17: Landlords should avoid making changes to the leased property that would interfere with its intended use by the tenant.

Article 18: Landlords must provide tenants with the necessary permits and licences for any construction or redecoration of the property, if applicable.

What are the general obligations of tenants in Dubai?

Here are some RERA tenancy contract rules that tenants should keep in mind when renting properties in Dubai:

Article 19: Tenants must make rental payments on the due date. They cannot perform any maintenance, restoration, or changes to the property without the landlord's permission.

Article 21: At the end of the lease agreement, tenants must return the property in the same condition, except for ordinary wear and tear.

Article 22: Unless otherwise agreed, tenants are responsible for paying necessary taxes and fees due to the relevant government departments.

Article 23: When vacating the property, tenants must not remove any improvements made unless otherwise agreed with the landlord.

Hope this guide helps!

If you are thinking of getting a property up for rent, or are planning to put your property up for rent - you can drop our team of experts a line!