Tenancy Law In Dubai

A Comprehensive Guide to Landlords and Tenants’ Relationship under Rental Law in Dubai

Introduction

Dubai is a speedily mounting city with a booming Real Estate market that attracts both landlords and tenants from all over the world.  The rental laws in Dubai aim to protect the rights of both the landlords and tenants in Dubai. It is essential to have a clear understanding of the rights of landlords and tenants in Dubai to avoid legal disputes.

A brief of rental law in Dubai

The Real Estate Regulatory Agency (RERA) plays a vital role in regulating tenant’s rights in Dubai, outlining landlord’s obligations, and determining the overall both landlord and tenant relationship in Dubai. The rental law in Dubai gives specific rights and obligations to both the Landlord and Tenants which include rules regarding rent increases, security deposits, termination of contract, and maintenance obligations. This blog will provide comprehensive knowledge about Dubai’s Rental laws, covering everything from rental contracts to eviction procedures, ensuring that both parties are protected.

When it comes to the rental law in Dubai, there are four main regulations set for rental laws in Dubai as follows:

• Law No. (26) of 2007 (“Law No.26/2007”): This regulates the relationship between landlords and tenants in Dubai.
• Law No. (33) of 2008 (“Law No.33/2008”): This law amended certain articles of Law No. (26) of 2007 and governs the landlord-tenant relationship in Dubai.
• Decree No. (26) of 2013 (“Law No.26/2013”): This law established the Rent Disputes Settlement Centre (RDSC), which handles all types of rental disputes in Dubai.
• Decree No. (43) of 2013 (“Decree No.43/2013”): This law explicitly governs rent increases in Dubai.

Major rules of Dubai’s Rental Law

• Contract must be registered

The tenant or landlord must register a tenancy contract in RERA through the EJARI online portal. (Article 4 (2) of Law No.33/2008)

• Contract expires tenant continues to occupy the property

If the tenancy contract expires the tenant continues to occupy the properties without objection from the landlord and the contract shall be renewed for a similar period of one year whichever is less on the same terms and conditions. (Article 6 of Law No.26/2007)

• Rent must be specified

The landlords and tenants must specify the rent amount in the contract. (Article 9 (1) of Law No.33/2008)

• Rent Increase:

According to Decree No.43/2013, the landlord can increase the rent once the rental contract has expired. Any rent increase must be in line with RERA’s rental Calculator.

• Handover of property in good condition: The landlord shall hand over the property in good condition which allows the tenant to fully use it (Article 15 of Law No.33/2008)

• Modification of the terms of the Contract: If the tenant or the landlord wishes to modify the contract terms and conditions, they must notify the other party at least 90 days before the expiry date of the contract. (Article 14 of Law No.33/2008)

• Tenancy contract not expire in the event of death of tenant or landlord: In the event of death of the tenant or the landlord, the tenancy contract does not expire and shall be transferred to the parties’ legal heirs unless they decide to terminate it, the contract stays valid. If they choose to end the deal, the heirs must give 30 days or the days remaining to the expiry of the contract, whichever comes first as notice. (Article 27 of Law No.26/2007)

• Transfer of ownership of Property: Transfer of ownership of property to a new owner shall not affect the tenant’s right to occupy the property (Article 28 of Law No.26/2007)

Termination of rental contract

Contract cannot terminate unilaterally: If the contract is valid the tenant or landlord cannot terminate the contract unilaterally unless by mutual consent or in accordance with the provisions of law (Article 7 of Law No.26/2007

Before the expiry of the rental contract, the landlord may evict the tenant

According to Article 25 of Law No.33/2008 Amending Law No.26/2007, the landlord may evict the tenant from the leased property before the expiry of the rental contract on the following:

• If the tenant fails to pay the rent for 30 days or more the landlord may issue 30 days to the tenant to vacate the leased property.
• Where the tenant subleases the property without the landlord’s written approval.
• If the tenant uses or allows others to use the property for any illegal activities or breach the public order or morals.
• If the property is commercial and the tenant leaves the property it unoccupied without any reason for 30 days consecutive or 90 days non-consecutive days in a year.
• Tenant causes or allows others to cause damage or changes to the property that endangers the safety of the property.
• The tenant uses the property for purposes other than what it was leased for.
• The tenant fails to comply with any of the terms of the tenancy contract or the law within 30 days of being served a written notification from the landlord.

Upon the expiry of the contract, the landlord may evict the tenant on the following grounds:

• If the landlord wishes to demolish and reconstruct the property
• The property requires major maintenance or renovation that cannot be done while the tenant is occupying the property
• Where the landlord wishes to sell the property
• The landlord wants to use the property for his personal use or even for his relatives of the first degree.

In conclusion, navigating the dynamic relationship between landlords and tenants in Dubai demands a comprehensive understanding of the robust rental laws in place. Dubai’s Real Estate Regulatory Agency (RERA Dubai) plays a pivotal role in shaping this relationship, ensuring that the rights and obligations of both parties are clearly defined.

The key legislative pillars, such as Law No. (26) of 2007, Law No. (33) of 2008, Decree No. (26) of 2013, and Decree No. (43) of 2013, create a solid framework for addressing various aspects of the landlord-tenant dynamic. From contract registration through the EJARI online portal to rules governing rent increases, maintenance obligations, and termination procedures, Dubai’s rental laws provide a comprehensive guide for all stakeholders.

Crucially, the insistence on registering tenancy contracts, specifying rent amounts, and adhering to strict timelines for contract modifications underscores the commitment to transparency and fairness in landlord-tenant relationships. The laws also safeguard the rights of both parties in unique circumstances, such as the death of a tenant or landlord and the transfer of property ownership.

Termination of rental contracts is a carefully regulated process, balancing the interests of landlords and tenants. Whether it’s due to non-payment of rent, breach of contract terms, or the landlord’s legitimate needs such as property reconstruction, major maintenance, or personal use, the laws ensure that evictions are conducted with due process.

For individuals and businesses seeking legal guidance in navigating these intricate laws, reaching out to reputable legal professionals, such as real estate lawyers in Dubai, becomes imperative. Establishing a connection with a reliable Dubai law firm ensures that both landlords and tenants can make informed decisions, protect their rights, and mitigate the risks associated with the dynamic real estate landscape in this thriving city.

In this intricate legal landscape, seeking advice from experienced lawyers in Dubai is not just a legal strategy but a necessity. Trustworthy legal counsel can make all the difference in fostering a healthy and mutually beneficial relationship between landlords and tenants, providing assurance and clarity in an ever-evolving real estate market.

Written by Sr. Legal Assistant Shajahan Hameed