Tenancy Contract in Dubai: Everything You Need to Know

What is a tenancy contract?

A tenancy contract, also known as a lease agreement, is a legally binding document between a tenant and a landlord which outlines the terms and conditions of renting a property. In Dubai, a tenancy contract must be registered with the Real Estate Regulatory Authority (RERA) through the Ejari system, which makes it enforceable by law. This contract covers a number of crucial details about the lease, including the rental amount, payment terms and duration of the tenancy.

Key features of a tenancy contract in Dubai:

• Duration: Most tenancy contracts are for a period of one year, but longer or shorter periods could be agreed upon

• Rent: Both the rental amount and the schedule of how and when the rent will be paid.

• Responsibilities: Outlines the obligations of the tenant and landlord, such as who will be responsible for maintenance and paying utility bills.

Tenancy laws in Dubai

There are comprehensive laws and regulations which govern the Dubai real estate industry, and the rental market is no exception.

Tenancy laws in Dubai are governed by Law No. 26 of 2007, which outlines the relationship between landlords and tenants. This law covers important areas like the landlord’s ability to make rent increases, the renewal process, and the rights of both parties. The aim of these laws is to provide stability and transparency in the rental market, ensuring fair treatment for both tenants and landlords.

Key parts of Dubai tenancy law include:

• Rent cap: Rent increases must follow RERA’s rental index, which restricts how much a landlord can increase the rent, based upon rental prices of similar properties. It also regulates when and how a landlord can increase the rent.

• Eviction rules: A landlord cannot evict a tenant before the contract ends unless specific conditions, such as non-payment of rent, are met. There are also strict rules about how a landlord can evict the tenant at the end of the tenancy period, including how much notice they must give.

Key elements of a tenancy contract

There are various elements that must be included in a lease agreement to make it legally binding and enforceable in Dubai. These ensure that both the tenant and the landlord are protected and understand their rights and responsibilities.

An established real estate agency will use a standard tenancy contract in Dubai for every rental that they do, ensuring it closely follows the requirements outlined by Dubai tenancy law.

These elements include:

• Personal information: The full names, Emirates IDs, and contact details of both the tenant and the landlord

• Property details: This includes the address, size, and any specific details about the property being rented.

• Rental amount and payment terms: The agreed rental amount and how it will be paid, such as the number of post-dated cheques and their dates.

• Duration of the lease: The contract must specify the lease period. This is usually 12 months in Dubai.

• Maintenance responsibilities: Both parties must be clear about who is responsible for maintenance and repairs. Usually, the tenant is responsible for smaller repairs up to a certain amount, and then the landlord is responsible for any larger repairs.

What does a tenancy contract look like?

Below, you will see the first page of the standard DLD tenancy contract template. It is very clearly laid out into five sections:

• Owner/lessor (landlord) information

• Tenant information

• Property information (address, size etc)

• Contract information (period, annual rent etc)

• Signatures

Documents required for a tenancy contract

Before a tenancy contract in Dubai can be signed, there are certain documents that will be required from the landlord and the tenant. These documents are necessary to verify the identity of those entering into the lease agreement and ensure it can be registered through the Ejari system to ensure legality.

For tenants:

• Emirates ID

• Passport copy

• Residency visa copy

The real estate agent should collect and verify these documents as part of their process of qualifying the tenant.

For landlords:

• Title Deed of the property

• Emirates ID

The real estate agent will also be required to collect these documents to advertise a rental property online.

Tenancy contract clauses

A comprehensive tenancy agreement should include specific contract clauses to ensure the responsibilities of the tenant and landlord are clear and to avoid future disputes. These include:

• Termination clause: The conditions under which the lease can be terminated, such as early termination notice and penalties.

• Renewal clause: This specifies how the contract can be renewed, including any rent increases based on RERA guidelines.

• Utility payments: This clause indicates who will be responsible for paying water, electricity, and other utility bills.

Rights and obligations of tenants and landlords in Dubai

A crucial part of understanding what a tenancy contract is and how it works is knowing the rights and obligations of both the tenant and landlord. As a crucial part of a successful tenancy, Dubai law offers a number of protections and duties for both parties.

Tenant rights:

• The right to enjoy the property peacefully during the tenancy

• The right to challenge any unlawful rent increases or eviction notices.

• The right to have the property in a livable condition, with any required maintenance carried out by the landlord.

Tenant obligations:

• Paying rent on time as per the tenancy contract

• Maintaining the property in a good condition

• Only using the property for its intended purpose

• Returning the property in the same condition (excluding normal wear and tear) at the end of the lease

Landlord rights:

• The right to receive rent on time

• The right to evict the tenant if they breach the lease agreement - such as a non-payment of rent

• The right to inspect the property with reasonable notice

Landlord obligations:

• Addressing any major repairs

• Providing tenants with the necessary notice for rent increases or eviction - as per RERA guidelines

Renewing and terminating a tenancy contract

There are certain rules that both the tenant and landlord must follow when it comes to either renewing or terminating a tenancy contract in Dubai. Normally, a tenancy contract is renewed early, but if either party wants to terminate the lease agreement, proper notice must be given.

Renewal:

• If the landlord wishes to make any changes to the contract at the time of renewal, including rent increases, they must give at least 90 days written notice prior to the end date of the tenancy.

• If no notice is given, or it is done less than 90 days before the end of the contract, the agreement will automatically renew with the same terms and conditions.

Termination:

• A tenancy could be terminated if either party breaches the contract terms.

• If the tenant wishes to terminate a contract early, they must follow the terms agreed to within the contract

• If the landlord wants to terminate the contract, they must provide the necessary notice in line with Dubai law.

Who needs to sign the rent contract in Dubai?

In Dubai, both the tenant and the landlord (or their legal representatives) must sign the tenancy contract to make it legally binding. If the landlord has assigned an agent to manage the property, the agent can sign the contract on the landlord’s behalf, but only if they have power of attorney.

How to check a tenancy contract online

As an existing tenant or landlord, you may be wondering how to check a tenancy contract online. The Ejari system allows tenants and landlords to manage their tenancy contract online. To check a tenancy contract online you can:

1. Visit the official Ejari website or download the app.

2. Enter your contract details or Ejari number.

3. View, download, or print your tenancy contract through the platform.

How to make a tenancy contract in Dubai

Normally, this process is taken care of by a real estate agent, but you may be wondering how to make a tenancy contract in Dubai.

It is vital that any lease agreement complies with RERA’s guidelines, but fortunately this is made straightforward in Dubai. Most landlords and tenants use a standard template which is provided by the Dubai Land Department. After the contract is signed, it must be registered with Ejari to ensure it is legally binding.

Engel & Völkers is here to help

Whether you’re a tenant or a landlord, our leasing team is here to make your experience straightforward and stress free. We’re dedicated to helping you navigate the rental process, from understanding the details of your tenancy contract right through to move-in day.

With a wealth of knowledge and a commitment to exceptional service, Engel & Völkers ensures you’ll have the support you need every step of the way. Contact us today to discover how we can assist you with your leasing needs.