Dubai tenancy law is a complex legal framework that governs the rental agreements between landlords and tenants. The law has many aspects which are not always straightforward.
The following are some important things to remember about Dubai tenancy law:
- Tenancy contracts in Dubai are usually for a period of twelve months, but they can be renewed if both parties agree to do so.
- If the tenant wants to leave the property before the contract ends, they must provide at least 90 day’s-notice and pay an early termination fee.
- Tenants who are on a monthly rental agreement must provide at least one month’s notice before they leave or be subject to an early termination fee.
This article will explore the entire process you need to know about the Dubai tenancy law before buying a property for rent.
What is the Tenancy Law in Dubai?
In accordance with Article 9 of Law (26) of 2007, each party to a tenancy agreement must agree on a rent amount. This rent sum cannot be raised before the end of the first contract’s two-year term.
The landlord must notify tenants of any planned rent increases at least 90 days before the tenancy agreement expires, just like with all other modifications. The tenant has the option to accept or reject the increase, with a refusal requiring at least 60 days’ notice before the renewal date.
The Rent Dispute Settlement Centre in Dubai is the place to go if both parties are unable to come to an agreement or if the tenant wants to protest an unreasonable rent increase.
According to Decree No. (43) of 2013, all rent increases for properties in Dubai must be in compliance. Depending on the current rent of the property, varying maximum rent increases are permitted under Dubai’s rental law.
The Real Estate Regulatory Agency is given the jurisdiction to set the proportion of rent increases in Dubai under Article 10 of Law (26) of 2007. To determine the proportion of a rent increase they are qualified for, landlords and tenants can utilize the RERA rental calculator found on the DLD website.
Must-Know Terms of the Tenancy Law in Dubai
The Rights of a Tenant
- Every tenant in Dubai ought to have a decent place to reside. The landlord of the rental property has a legal and contractual obligation to deliver a home that is livable for the tenant and that complies with those requirements.
- According to the law and for the duration of the lease, the landlord is entirely responsible for maintaining the property, including any repairs needed for flaws or other damage that could affect the tenant’s standard of life.
- The landlord must refrain from making any alterations to the premises or its amenities that would prevent the tenant from making full use of the property. However, the renter is free to make renovations as they see fit, particularly if they will benefit the rental home.
- Landlords are obligated to give renters the approvals they need to file to the relevant office in Dubai in order to carry out any decoration or other work. However, as long as the tenant has the required paperwork to get such authorization, the addition shouldn’t have an impact on the property’s structure.
- The landlord has the right to request a security deposit from the tenant, but only under the condition that the landlord will return the deposit when the lease has ended. A tenant may file a complaint with the rent dispute committee for a final determination if the landlord refuses to provide the security deposit.
The Obligations of a Tenant
- It is the tenant’s duty to constantly keep the property in top condition and pay the agreed-upon rent by the due dates.
- If a tenant wishes to make any improvements to the property, he or she must first obtain authorization from the landlord and the appropriate formal approval from Dubai.
- The lease holder might be asked to provide a security deposit by the landlord. This is to guarantee that the rented property will be maintained after the leasing agreement expires, provided that the landlord will return the deposit or the remaining amount to the tenant after a mutually agreed-upon termination or expiration of the tenancy agreement.
- The tenant is responsible for making sure that, aside from normal wear and tear or damage brought on by unforeseen circumstances, the rented property is appropriately returned to the landlord when the tenancy agreement expires in the same condition as when it was first signed. If there is a disagreement between a landlord and a tenant, the tribunal must be contacted to properly handle the problem.
- All taxes and fees levied by the government for the use of the rented property, as well as any fees or taxes imposed on any subtenant, must be paid by the renter unless otherwise specified in the rental agreement.
- When the tenant vacates and gives up ownership of the rented property, they are not permitted to remove any leasehold improvements they made, unless both the landlord and the tenant agree otherwise.
- The tenant is not permitted to sublet the rented property to third parties without the landlord’s prior written consent unless both the landlord and tenant agree differently.
Rent Negotiations and How to Ensure You’re Getting What You’ve Paid For
The landlord is more likely to accept a cheaper price if you can pay for the entire year upfront. Depending on their cash flow condition, the landlord may request a higher amount if you want to pay with multiple checks.
Rent negotiations are a common occurrence in the rental world. There are many ways to negotiate rent, but this article will focus on the two most common: Rent Renewals and Rent Negotiations. A Rent Renewal is when a tenant requests an increase in their monthly rent, usually after signing a lease for a new term. A Rent Negotiation is when a tenant asks for a decrease in their monthly rent.
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It is crucial for NL3 to comprehend the deadline for giving renewal notices set forth in their rental agreement. Then, Mr. Aengaar advice approaching the landlord or broker at least two to three months ahead of the lease’s expiration date to guarantee fruitful discussion and prevent any last-minute decision-making or issues.
According to Mr. Youssef, your landlord is not permitted to raise your rent if they haven’t given you at least 90 days’ notice of any rate increases. The rental agreement for real estate Dubai will automatically renew at the same rental rate and based on the same terms and circumstances as the prior year if no electronic or paper message is served to the tenant.
How to Renew Your Tenancy Contract with Landlords?
Both tenants and landlords may have a terrible time with a lease renewal in Dubai. In order to prevent other tenants or potential buyers from even having a chance to view the property, landlords and brokers typically wait until the last day to send out the renewal notifications, which causes confusion.
These are the steps you may take to prevent any issues with your tenants and the terms of your lease.
- A three-month notice period is required before a contract expires; if a renewal is not agreed upon, either party must provide the other side 90 days’ notice. However, the length of a contract determines the precise notice period.
- You must register the tenancy agreement with the Dubai Land Department within three months of signing the initial contract, to prevent renting out the home more than once. According to Dubai’s regulations on lease contract renewal, the landlord must submit an application form given by the Land Department or register the tenancy contract online.
- Each rental property in Dubai has a unique rental payment schedule. However, tenants are required to pay the rent before the leasing period ends in accordance with Dubai’s tenancy contract renewal regulations.
While monthly rent payments must be made on time to prevent your tenants from skipping out on rent, the full payment for the rent must be made within 20 days of the tenancy contract expiring.
Tenancy laws and regulations are very important for landlords, tenants, and Dubai real estate agencies. There are numerous benefits to investing in real estate in Dubai given the recent improvements in the market. Follow Dubai’s tenancy contract renewal guidelines if you want to get the most return on your investment. Tenants may not have to pay local taxes, but landlords must still abide by the laws!