Rent And Tenancy Law

We, at Amani Al-Kindi Law and Legal Consultations, under the leadership of the Real Estate and Lease Cases Department by the Senior Legal Consultant Hussein Nathir Al-Taoomah, the Head of the Advisory Board in the company, provide the best solutions, advice, and consultations in this field with experience exceeding 8000 real estate and lease cases for major commercial companies in the Emirate of Dubai. The results have surpassed 95% of successful cases. What distinguishes our team in lease and real estate cases is the extensive and long-standing experience, allowing clients to immediately recognize our ability to achieve the desired results according to laws and regulations.

Here, we would like to provide an overview of the rental laws in the Emirate of Dubai. Rental procedures are considered one of the most important transactions in Dubai due to its global reputation as an ideal destination for property rentals. The increased demand for rental apartments in Dubai has led the Emirate of Dubai to regulate the relationship between the landlord and the tenant through the Dubai Tenancy Law to ensure the rights of both parties.

Therefore, before signing a lease contract in Dubai, you must familiarize yourself with the rental contract laws established by the Real Estate Regulatory Agency (RERA). Here is a simplified explanation of the rental laws followed in the Emirate of Dubai.

The Real Estate Regulatory Agency in Dubai has established four laws that tenants and property owners must consider, as follows:

1. Law No. 26 of 2007: Regulating the relationship between landlords and tenants in Dubai.
2. Decree No. 33 of 2008: Amending Law No. 26 of 2007, regulating the relationship between the owner and tenant in Dubai. The decree replaced the texts of articles (2), (3), (4), (9), (13), (14), (15), (25), (26), (29), and (36) of the original law. The law mandates the registration of the lease contract with the Real Estate Regulatory Agency (RERA) through the Ejari program, by the tenant or owner. Moreover, this law ensures that the property is not leased twice simultaneously.
3. Decree No. 26 of 2013: Addressing all types of rental disputes in Dubai, improving procedures for resolving such disputes through a fast and simplified mechanism, by establishing the Rental Dispute Settlement Center. This aims to achieve social and economic stability for all stakeholders in the real estate leasing sector and related sectors, supporting sustainable development in the Emirate.
4. Decree No. 43 of 2013 governs rent increases in Dubai, where the maximum percentage increase in property rental fees is determined upon the renewal of lease contracts as follows:
   • No increase in the rental value of the property unit if its rent is less than 10% below the average rent.
   • 2. 5% of the rental value of the property unit if its rent is between 11% and up to 20% below the average rent.
   • 10% of the rental value of the property unit if its rent is between 21% and up to 30% below the average rent.
   • 15% of the rental value of the property unit if its rent is between 31% and up to 40% below the average rent.
   • 20% of the rental value of the property unit if its rent is more than 40% below the average rent.

Note that this decree applies to both public and private landlords in the Emirate of Dubai, including private development zones and free zones, including the Dubai International Financial Centre. The application of the provisions of this decree involves determining the average rent according to the ‘Dubai Rent Index,’ approved by the Real Estate Regulatory Agency.

Tenant Rights In Dubai

• The tenant or the landlord must register the lease contract with the Real Estate Regulatory Agency (RERA).
• If the lease contract expires and the tenant continues to reside in the property without objection from the landlord, the lease term will be automatically renewed for the same period or for one year with the same terms and conditions.
• The landlord can transfer the property ownership to a new owner without affecting the tenant’s right to the property.
• In case of any changes to the contract terms, such as changes in the rent amount or lease duration, landlords must notify tenants at least three months before the lease expires.
• If the landlord wishes to terminate the lease contract early, the tenant must comply with the exit conditions specified in the lease agreement.
• Timely payment of the agreed-upon rent on the due date.

Note that landlords are not allowed to increase the rent for residential properties before the expiration of three years from the date of signing the contract between the landlord and the tenant. This supports tenant stability and encourages investments in Dubai over the medium term. In case of non-payment of rent, the landlord can resort to the execution judge, where a penalty for non-payment of rent in Dubai is determined.

The following is a simplified comparison of obligations that both the tenant and the landlord must adhere to in Dubai:

Landlord’s Obligations:

1. Delivering the property in good condition and allowing the tenant full enjoyment of it.
2. Making any necessary alterations or repairs to the property, unless otherwise agreed.
3. Not making any modifications to the property that may negatively impact the tenant’s use.
4. Providing the necessary permits for any construction the tenant wishes to undertake, unless otherwise agreed.

Tenant’s Obligations:

1. Not changing the terms of the contract without the landlord’s approval.
2. Delivering the property to the landlord in good condition at the end of the contract.
3. Removing any improvements or modifications made by the tenant upon vacating, unless otherwise agreed.
4. Paying taxes and necessary fees if the property is not delivered in good condition to the landlord.

In fact, there are two situations in which the landlord can evict the tenant from the property in Dubai under the Dubai Rent Law 2022, and they are:

1- Before the expiration of the lease contract:

• Failure to pay the rent or any part of it within thirty days from the date of notification, unless the parties agree otherwise.
• Renting the property by the tenant without the owner’s consent.
• The tenant using the property or allowing others to use it for unlawful purposes or in violation of public order or morals.
• The tenant leaving the commercial premises unoccupied without a reasonable cause for thirty consecutive days or ninety non-consecutive days in the year.
• Making changes to the property that affect its safety or cause damage to it.
• Using the property for a purpose contrary to the tenant’s agreement.
• Abandonment of the property.
• The tenant not complying with legal obligations or any terms of the contract.
• Demolition of the property for urban development purposes by the competent authorities.
  Note that the tenant can terminate the lease contract before its expiration under certain circumstances and by mutual agreement with the property owner. The parties agree on compensation or finding a new tenant.

2- At the end of the lease contract:

• Renovation of the property, and it is impractical with the tenant in place.
• The owner’s desire to demolish it for reconstruction, with the tenant having the priority to return to the property within one month from the date of the landlord’s notification.
• The owner’s need to use the property for personal purposes or for one of his first-degree relatives, provided he proves non-ownership of an alternative property.
• The owner’s desire to sell the property.
  It is worth noting that notifying the tenant of the reasons for eviction must be done through a notary public or registered mail, twelve months in advance of the eviction date.”