Renting real estate is one of the most important transactions in Dubai due to its global fame as an ideal destination for renting real estate. The increasing demand for apartments for rent in Dubai has led the Emirate of Dubai to regulate the relationship between landlord and tenant through the Dubai Rental Law to ensure the rights of both parties.
Therefore, before signing a lease in Dubai, you should familiarise yourself with the lease laws established by the Real Estate Regulatory Authority RERA. Here is a detailed and simplified explanation of the laws of renting real estate in Dubai.
Tenancy Rules and Regulations Dubai
2008 Law
A property cannot be rented out more than once at the same time.
2013 Law
Real estate disputes and disagreements are resolved to preserve all rights and support the country’s economic development.
Law No. 43 of 2013
Acknowledges that there is an upper limit to the increase in rent upon renewal of the annual contract, and those who do not comply with the increase specified in this decree will be penalised.
Follow the details:
Dubai’s Real Estate Regulatory Agency (RERA) has set four laws that tenants and landlords must observe:
- Law No. 26 of 2007: Regulates the relationship between landlords and tenants in Dubai.
- Decree No. 33 of 2008: This is the law amending Decree No. 26 of 2007, which regulates the relationship between landlords and tenants in Dubai. Articles (2), (3), (4), (9), (13), (14), (15), (25), (26), (29) and (36) of the original law have been replaced.
The law mandates the registration of the lease with RERA through a rental program, by either the tenant or the landlord.
This law ensures that the property cannot be rented out twice at the same time.
For example, Article 4 of the Amended Decree of 2008 stipulates that the rental relationship between the landlord and the tenant shall be regulated by a Dubai lease contract that includes a description of the leased property, the purpose for which it is leased, the duration and rental allowance, the method of payment, and the name of the owner if he is not the landlord. All lease contracts related to real estate subject to the provisions of this law and any amendments to those contracts are registered with the organisation.
Get advice from Masaken’s real estate agents to further clarify your rights as a tenant or landlord.
- Decree No. 26 of 2013: It deals with all types of rental disputes in Dubai, and develops procedures for resolving this type of dispute through a quick and simplified mechanism, through the establishment of the Rental Dispute Resolution Center. In order to achieve social and economic stability for all those involved in the real estate rental sector and related sectors, in support of sustainable development in the emirate.
- Decree No. 43 of 2013: This decree governs the increase in rents in Dubai, where the maximum percentage of increase in the real estate rental allowance upon renewal of real estate leases is determined as follows:
1.No increase in the rental value of the real estate unit if its rental allowance is less than 10% of the average rent.
2 .5% of the rental value of the real estate unit if its rent is between 11% and 20% lower than the average rent for similar properties.
3. 10% of the rental value of the real estate unit if the rental allowance is between 21% and 30% less than the average wage.
4. 15% of the rental value of the real estate unit if its rental allowance is between 31% and 40% less than the average wage.
5. 20% of the rental value of the real estate unit if its rent is less than 40% of the average similar rent.
The decree applies to public and private lessors in the Emirate of Dubai, including special development zones and free zones, including the Dubai International Financial Center (DIFC). For this decree, the average rent is determined according to the “Rental Allowance Index in the Emirate of Dubai” approved by the Real Estate Regulatory Agency (RERA).
Tenant rights under the Dubai Rental Law
- The tenant or landlord must register the lease at the Real Estate Regulatory Agency (RERA).
- If the lease expires and the tenant continues to live in the property without any objection from the landlord, the lease term will be automatically renewed for the same term or one year with the same terms and conditions.
- The landlord can transfer the ownership of the property to a new owner without affecting the tenant’s right to the property.
- If there is any change in the terms of the contract, such as changing the rent amount and duration of the contract or writing any new clause, they must communicate this three months before the end of the lease.
- In case you want to terminate the lease early, the tenant must abide by the exit clause in the lease.
- Pay the agreed rent on the due date.
Note that the landlord may not increase the rent for residential properties before 3 years have elapsed from the date of signing the contract between the landlord and the tenant.
This supports the stability of tenants and encourages investments in Dubai in the medium term. In case of non-payment of rent, the landlord may resort to the enforcement judge where the penalty for non-payment of rent is determined in Dubai.
For further clarification, Masaakin provides you with a simplified comparison of the obligations that both the tenant and the landlord must abide by in Dubai:
| Tenant Obligations | Landlord Obligations |
|---|---|
Do not change the terms of the contract without the landlord’s approval. | Deliver the property in good condition and allow the tenant to fully benefit from it. |
| Hand over the property to the landlord in good condition upon termination of the contract. | Make any modifications or repairs to defects in the property, unless otherwise agreed. |
| Remove any improvements or modifications made by the tenant to the property upon vacating it, unless otherwise agreed by both parties. | Do not make any modifications to the property that may negatively affect the tenant’s use of the property. |
| Pay the necessary taxes and fees in the event that the property is not handed over to the landlord in good condition. | Grant the necessary licenses for any construction the tenant wishes to carry out, unless otherwise agreed. |
Contact Masaakin directly to facilitate access to your request.
Are you a tenant or a landlord?
Due to the importance of rental laws in the UAE, we have outlined a guide for tenants on ways to resolve rental disputes. Also, a guide to resolving real estate disputes in Dubai for property owners in the UAE.
Dubai Tenant Eviction Law
In fact, there are two cases in which the tenant can be evicted from the property by the landlord in Dubai based on the Dubai Tenancy Law:
Before the end of the tenancy contract:
- Failure to pay rent or any part thereof within thirty days from the date of notification, unless otherwise agreed by both parties.
- Renting the property by the tenant without the landlord’s approval.
- The tenant’s use of the property or allowing others to use it for illegal purposes or in violation of public order or morals.
- Leaving the leased commercial premises unoccupied without a legitimate reason for thirty consecutive days or ninety intermittent days in the year.
- Making changes to the property that affect its safety or cause damage to it.
- Using the property for a purpose other than that for which it was leased.
- The property becoming liable to collapse.
- The tenant’s failure to comply with legal obligations or any of the terms of the contract.
- Demolition of the property for urban development purposes by the competent authorities.
Note that the tenant can cancel the lease contract before the expiration of its term in certain cases and by mutual agreement with the landlord. They can agree on a compensation amount or find a new tenant.
Upon the end of the tenancy contract:
- Restoration of the property is necessary, and this cannot be done with the tenant in place.
- The landlord’s desire to demolish it for reconstruction, and the tenant has priority in returning to the property within one month from the date the landlord notifies them of this.
- The landlord’s need to use the property for personal purposes or for one of their first-degree relatives, provided that they prove that they do not own an alternative property.
- The landlord’s desire to sell the property.
It is worth mentioning that the tenant must be notified through a notary public or registered mail of the reasons for eviction mentioned above 12 months before the date of eviction.
Download Dubai Tenancy Law PDF
You can download a PDF copy from the Dubai Land Department, which is the entity responsible for regulating and managing land and real estate in the Emirate of Dubai.
We are also pleased to provide you with a summary of tenancy laws in various Emirates, such as tenant rights in the Abu Dhabi Tenancy Law and tenant rights according to the Tenancy Law in Sharjah. Also, learn about the real estate registration steps in Ras Al Khaimah through Masaakin’s blog.
FAQ
Does the landlord have the right to raise the rent?
Yes, provided the tenant is notified 90 days before the end of the contract.
What is the annual increase percentage of the lease?
5% increase is allowed for properties whose rents are lower than the current rents of 11% – 20%.
What is the tenant notice period in Dubai?
It is customary for the landlord to give the tenant at least 12 months’ notice to vacate the apartment at any period of the lease.
Is there a fee for renewing the lease?
No, the landlord is prohibited from demanding any fees when renewing the lease with the tenant. A fee clause cannot be written in the lease.
Is the landlord allowed to cut off services to the tenant?
The landlord is not allowed to cut off services to the property or interfere with the tenant in any way that prevents the tenant from utilizing the property.
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