- 5 min read
- by Joshua Hughes
RERA tenancy law in Dubai: A complete guide
Your detailed guide to renting a property in Dubai
The issue of rental price hikes and notices is a common source of contention for tenants and landlords, often impacting their long-term relationships. This blog delves into the current landscape of rental price increases, the Dubai real estate laws and regulations governing rentals, the rights of both tenants and landlords, and practical tips for effectively navigating this complex process.
What are RERA tenancy laws?
Dubai’s booming real estate market is overseen by the Dubai Land Department’s (DLD) regulatory branch, the Real Estate Regulatory Authority (RERA). RERA is responsible for establishing Dubai rental laws that protect the rights of both tenants and landlords.
When it comes to rental laws in Dubai, there are four primary tenancy laws by RERA that one should be aware of:
Law No. (26) of 2007: Provides regulations for landlord-tenant relationships in Dubai.
Law No. (33) of 2008: Provided certain amendments of Law No. (26) of 2007 on the regulations for landlord-tenant relationships in Dubai.
Decree No. (26) of 2013: Established the Rental Disputes Settlement Centre (RDC) for any kind of rental dispute in Dubai.
Decree No. (43) of 2013: Specifically regulates rent increases in Dubai.
Tenants rights in Dubai
As a tenant in Dubai, it is important to be aware of your tenancy rights to not only have a smooth living experience in Dubai but to also know when you can approach legal authorities for issues.
Right to a written tenancy contract
Article 4 of Law (26) of 2006 stipulates that any rental agreement occurring in Dubai or the UAE will only be considered official upon the drafting of a tenancy contract - which determines the agreed-upon terms and conditions between landlord and tenant.
Right to register the rental contract
Article 4 of Law (33) of 2008 states that either the tenant or the landlord must draft, sign, and register a tenancy contract with RERA through Ejari. This protects the tenant’s rights and ensures that the landlord doesn’t rent out the unit to someone else.
Protection against unfair eviction
According to Dubai rental law, if a tenant is unfairly evicted from their residence by the landlord, they can approach the RDC in Dubai to seek justice.
Upon considering factors such as emotional and financial distress caused to the tenant and the duration of the tenancy contract, the RDSC will take action and provide the tenant with compensation.
Right to renew or modify contract
Within Dubai property rental laws, Article 14 states that in case the landlord or tenant wishes to make amendments to the contract, they must notify the other party at least 90 days prior to the contract’s expiration.
Protection against illegal lockouts or utility disconnection by landlord
This is an important component of Dubai rental law: Article 34 of Law (26) of 2007. This protects tenants from unfair practices such as the disconnection of their utilities or illegal lockouts during an ongoing tenancy lease.
Right to lodge complaints and dispute resolution
As Dubai rental law states, any rental disputes between a tenant and landlord must be settled by the RDSC. This is outlined by Decree No. 26 of 2013.
Key obligations of tenants in Dubai under RERA
While Dubai property rental laws have various provisions to protect the tenant, several rules outline the responsibilities of a tenant.
Pay rent and other charges on time
According to Article 19 of Dubai rental law, the tenant must make timely rent and utilities payments on the due date. Any changes with regard to maintenance or restoration of the property must be run by the landlord.
Use property for approved purposes only
Article 25 of Dubai tenancy law states that any rented unit in the city has designated residential, industrial, or commercial usage. If you utilize your residential unit for other activities, it will be deemed illegal and can lead to eviction.
Obtain written approval for alterations or subletting
Under Artiles 19 and 24 of Dubai rental law, tenants are not allowed to make structural/layout changes to the property. They also must let the landlord know if they plan to sublet the property and obtain written consent. Breaching this rule may lead to eviction.
Avoid property misuse or damage
Tenants will be held liable for any damage they cause to the property beyond normal wear and tear, according to Dubai rental law. In the case of property misuse or damage, it must be immediately reported to the landlord, and the tenant will bear the financial responsibility for the repairs.
Maintain property
Article 19 under Dubai rental law states that tenants must maintain the property they reside in reasonably well, as they would in their own homes. From maintaining any furnishings to keeping the property clean, proper maintenance is a must.
Vacating notice to the landlord
Law (33) of 2008 states that tenants are not required to provide any notice to their landlord before vacating the property - upon their tenancy contract’s expiration. The landlord must return the tenant’s security deposit after inspecting their property and ensuring that no damage has been done.
Return property in good condition post-lease
Dubai tenancy laws mandate tenants to return the property in good condition when they vacate it. Barring normal wear and tear, there must be no other damage to the property, and it must be returned to the landlord in a clean condition - almost as similar to when the tenant once rented the property.
Provide all fees to DLD
As Dubai property rental laws state, a landlord can increase their property’s rent after referring to the RERA rent calculator. However, if the rent increase does not align with the RERA rent increase law, tenants can approach the DLD with an Offer and Deposit motion.
This allows them to file a motion requesting for the provisional and Summary Actions Court to issue an order without impairing their rights.
Not able to remove any leasehold improvement
Under Dubai rental law’s Article (23), tenants must make sure the house is clean when they vacate. They are also not allowed to remove any improvements made to the property during their tenancy duration - unless there has been an agreement between both parties.
RERA rental increase regulations in Dubai
The growth of urban centers has led to increased demand for housing, resulting in an upward trend in rental prices. The rental market in Dubai has seen a substantial rise in recent years, with apartment rents rising by 24.1% and villa rents by 24.8%.
The Real Estate Regulatory Authority (RERA) has instituted regulations governing Dubai's property market to address the evolving dynamics, including Articles 26 of 2007, No. 33 of 2008, and No. 2 of 2011, specifying the roles and responsibilities of tenants and landlords and ensuring a balanced relationship between the two parties.
What to do if your landlord wants you out
In Dubai rental law, Article 7 states that a valid tenancy contract cannot be unilaterally terminated through its duration unless both parties agree upon it.
There are only specific situations wherein a landlord can evict their tenant before the tenancy contract expires, according to Article 25 of Law (26) of 2007. These situations include:
The tenant fails to pay rent within 30 days of being handed a written notification from the landlord.
The tenant sublets the property without the landlord’s permission.
The tenant uses the property for illegal activities or allows others to use it.
The tenant causes property damage that endangers their safety.
The landlord wants to demolish or reconstruct the property.
If your landlord is attempting to evict you illegally, you can approach a lawyer or the DLD with your case and any evidence you may have.
To obtain more insights and clarity about the Dubai real estate market, stay up-to-date with the latest news and updates from Engel & Völkers Dubai. Get in touch with us at dubai@engelvoelkers.com or call us at 800 355.
Frequently asked questions
Dubai rental laws specify that if a landlord wishes for the tenant to move out, they must provide a notice of at least 12 months. This only applies if there are no violations of the tenancy contract or property damage beyond a permissible degree by the tenant.
If the tenant doesn’t pay rent on the due date, and even within 20 days of receiving a written notice from the landlord, they risk facing legal action. The landlord can approach the RDC to issue an eviction order.
If the tenant submits faulty cheques, it may be considered a criminal offence. This has been clarified under Dubai rental laws.
Yes, they do. Under Dubai rental law Article 8 and Article 20, the security deposit is returned to the tenant upon the expiration of the tenancy contract. However, if there are any damages to the property that require repair and restoration, the landlord is allowed to deduct the expenses from the security deposit.
The landlord must usually provide the tenant a 12-month notice period before eviction, according to Dubai tenancy laws. Unless there are unavoidable reasons that must result in earlier eviction, a long notice period is given to the tenant.
According to Dubai real estate laws and regulations, normal wear and tear in the apartment is taken care of by the landlord. But if there is some major property damage to the landlord’s apartment or furniture, the tenant will be financially responsible for it.
Cheques
One standard method of paying rent in Dubai is through post-dated cheques spread out over the rental period. This approach offers a straightforward way to manage financial obligations. The exact number of cheques can vary, ranging from one to six, with landlords typically preferring fewer cheques. This payment method can provide tenants with a more manageable payment plan while giving landlords a sense of financial security throughout the rental period.
Online Banking
The Dubai Land Department (DLD) is exploring the possibility of using online banking as an alternative to cheques. This proposal could offer more convenient and secure options for renters to pay their rent.
When your tenancy contract expires, there are some steps you should initiate.
Firstly, talk with your landlord at least 90 days before the deadline to give enough time for discussions. To determine whether the suggested rental increase falls within the allowable boundaries set by the DLD, it is recommended that you conduct in-depth research on the current rental rates prevailing in your area.
During the negotiation process, you must maintain open and transparent communication with your landlord, put forward a well-reasoned argument, and strive to reach a mutually beneficial agreement.
A security deposit is a standard part of Dubai rental law. Landlords require this deposit at the lease's start, which protects them against potential damages. The security deposit usually amounts to 5% of the annual rent for unfurnished properties and 10% for furnished residences. This deposit is refundable, provided the property is returned to the landlord in perfect condition after the tenancy.
However, regarding maintenance issues, landlords are responsible for handling repairs. Be sure to review your tenancy contract for any limitations on coverage carefully. For instance, landlords cover major repairs if they exceed AED 1,000, and the tenant is responsible for paying for maintenance below AED 1,000.
Regarding the regulations for eviction, it is essential to note that landlords are permitted to evict tenants after the end of the agreed-upon tenancy period. Suppose a landlord wishes to terminate the tenancy agreement. In that case, they must provide written notice within a 12-month, which must be sent via registered mail or through a notary public. This extended notice period allows tenants to make any necessary arrangements for relocation.
Regarding rent increases, landlords can only adjust during the tenancy renewal period. Furthermore, they must provide tenants with a written notice period of 90 days before the renewal. Rent adjustments must align with the DLD's Rental Index to ensure reasonable and fair increases. This comprehensive system provides a clear, objective framework for determining appropriate rent increases.
Tenants who wish to end their lease early may face a penalty of two months' rent. Some contracts allow for early termination based on individual lease terms, which may not have any penalty. Before signing the lease contract, negotiate with agents to have these options on the contract.
Settle all outstanding bills, including DEWA bills, cleaning costs, cooling charges, internet fees, and repair fees. Disconnect all utilities and notify DEWA to get your utility deposit returned. Do a thorough inspection to ensure the property is in good shape and you're not liable for any repairs. If you've lived in a furnished property, check for any damage and fix it.
Tidy up before leaving to avoid extra cleaning charges, and have your removal company arrange for the cleaning and garden tidying. Take all your belongings with you on move-out day, as landlords are not obligated to store your things.
Discovering your ideal rental home is easy with a clear set of steps. Don't worry, homely bliss is achievable with Engel & Völkers Dubai.
Start by defining your preferences. You can check out some of our Exclusive listings in Dubai's sought-after communities.
Know your financial limits.
Ensure to gather essential documents such as a copy of your Emirates ID or passport, proof of income (payslip or employment contract), and a UAE bank account.
When signing a lease agreement, it is essential to carefully review the terms and conditions, including rent, payment dates, deposit information, maintenance responsibilities, and additional charges, to ensure your legal protection.
When conducting an incoming property inspection, it is essential to do a joint inspection with the landlord, record any defects, and document with photographic evidence.
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Contact
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Golden Mile Galleria 2, Office 21, Mezzanine Floor
Palm Jumeirah, PO Box 17722, Dubai, UAE
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