A Comprehensive Guide to Dubai Rental Laws

The rental market in Dubai is highly regulated. Real Estate Regulatory Authority (RERA) governs the rental market in Dubai with laws and regulations. From rent increases and non-payment to eviction notices and maintenance responsibilities, the rental laws in Dubai protect the rights of tenants and landlords.

The Dubai Land Department (DLD) introduced Law No. 33 of 2008, amending Law No. 28 of 2007, to regulate the landlord-tenant relationship in the emirate. However, these laws are only applicable if the landlord and tenant register their tenancy contract with Ejari.

Here, we’ll learn about Dubai rental laws, outlining key responsibilities and rights of tenants and landlords. 

Key Takeaways

• Ejari regulates the tenancy contract in Dubai
• Landlords can increase rent up to 20%, but it should be according to the market value.
• Tenancy contracts should have all the important details.
• Landlords can evict the tenant for illegal activities, non-payment of rent, or subleasing without a permit.
• When renewing a tenancy contract, amend the terms and register it with Ejari.
• Landlords can evict tenants for property renovation or reconstruction or personal use.
• Tenants handle minor repairs and daily care, whereas landlords are responsible for major maintenance.
• Security deposits are refundable.

Understanding Tenancy Laws in Dubai

Dubai rental laws highlight the obligations of tenants and landlords towards each other. Moreover, it helps both parties understand the system. Here are the primary tenancy laws:

Laws/Decree	What It Covers
Law No. 26 of 2007	It is the foundation of Dubai tenancy law. This law defines key terms, contract requirements, and obligations. In short, it regulates the relationship between the tenants and landlords.
Law No. 33 of 2008	It amends Law No. 26 of 2007, including definitions, setting rent, eviction criteria, and notice periods for ending tenancy contracts or increasing rent.
Decree No. 2 of 2011	It established RERA’s authority to regulate rent in Dubai.
Decree No. 43 of 2013	This set a cap on rent price increases in Dubai, depending on the market average.
Law No. 16 of 2007	This law established the Real Estate Regulatory Agency (RERA).
Decree No. 26 of 2013	This established a special tribunal to resolve disputes between landlords and tenants
Law No.1 of 2009	Established RERA’s Rent Index Calculator as the benchmark for calculating average rent value.

Before we jump into rental laws, let’s understand Ejari, which is mandatory to regulate tenancy contracts.

Ejari – Tenancy Contract Registration

When you rent a property in Dubai, Ejari is the first step to regulate tenancy contracts. Without Ejari registration, you can’t file a rental dispute in Dubai.

Once the tenancy contract is signed, the landlord is responsible for Ejari registration. The owner of the property can register Ejari online by submitting the following documents:

• Emirates ID copy
• Copy of title deed

If the owner is hiring a property management company, the representative must submit the following documents to register the tenancy contract:

• Copy of owner’s Emirates ID 
• Copy of title deed
• Power of attorney (PoA) copy

The following can register the contract with Ejari:

• Individual landlords who manage their property
• Companies that own and manage their own property
• Legal representatives
• Property management companies

Once you have registered with Ejari, ensure that you follow these rules and regulations:

Rent Increase Laws in Dubai

According to Decree No. 43 of 2013, landlords can increase the rent. That said, there are certain conditions. When renewing a rental contract, the landlord can increase the rent by a maximum percentage of:

• No rent increase if the annual rent is up to 10% less than the average market value
• 5% increase in rent where the rental value is 11% to 20% less than the average rental value of similar units
• 10% increase in rent if it is 21% to 30% less than the rental market value
• 15% increase in rent, where the rent is 31% to 40% lower than the average rental value
• 20% increase is valid when the rent is 40% less than the average rental market value

This Decree applies to all landlords, whether they own a public or private entity. The average rental value will be determined by Dubai’s Smart Rental Index, also known as the RERA Rent Calculator.

Tenancy Contract Detailing

As per Law No. 33 of 2008, amendment of Law No. 28 of 2007, the tenancy contract must state every detail, leaving no uncertainty. The contract should have a description of rent and the payment method. Also, the tenancy contract must state the property owner’s name if the landlord is not the owner.

The rental agreement must have the following details:

• Owner’s name
• Tenant’s name
• Type of land
• Location
• Term of the rental contract
• Rent
• Payment method

Renewing Tenancy Contract

When renewing the tenancy contract, amend any terms related to rent and the payment method. If the landlord and tenant fail to reach an agreement on rental value, the Tribunal will determine the rent according to the market value.

If the landlord or tenant wants to amend any terms in the rental agreement at the time of renewal, they must notify the other party at least 90 days before the contract expires.

Term of Lease Contract

The tenancy contract must specify the term. If the term of the contract is not specified, tenancy will continue for the period for which rent has been paid.

If the rental contract expires and the tenant continues to occupy the property without the landlord’s objection, the contract will be renewed for the same term or one year (whichever is shorter. Moreover, the contract will continue with the same terms.

The tenant and landlord can’t terminate the contract unilaterally. They can only terminate with mutual consent. If the property is subleased, its term will end with the expiry of the tenancy contract.

Tenant’s Right to the Full Use of Property

The landlord must provide the property to the tenant in good condition, which allows the full intended use. If any construction is required and the tenant agrees to it, the identity of the party incurring the cost must be mentioned in the tenancy contract.

Rent

The lease contract must clearly specify the rent. After signing the contract, the landlord can’t increase the rent for a period of two years. After the first two years, the landlord can only increase the rent as per the RERA rent increase law.

Also, the rent will cover property use, including swimming pool, gym, health clubs and other shared amenities, unless stated otherwise.

Tenant will pay the rent on the due date, specified in the contract. If the date is not specified, 

it is better to pay annual rent in a single cheque or four quarterly cheques.

Eviction Cases

The landlord may seek eviction before the contract ends in the following cases if the tenant:

• Fails to pay the rent on the due date and even after 30 days of formal notice.
• Subleases the property without the approval of the landlord.
• Uses or allows others to use the property for illegal purposes and activities.
• Makes a change to the property that compromises safety or the change is not restorable.
• Uses the property for other purposes than the ones it was let for.
• Fails to observe the responsibilities within 30 days of formal notice to perform obligations served upon the tenant by the landlord.

Upon expiry of the tenancy contract, the landlord can request eviction only if:

• Any government authority requires it for demolition or reconstruction for development in Dubai.
• The property’s condition requires renovation or complete maintenance that can disturb the full use of the property for the tenant.
• The landlord wants to reconstruct the house that will affect the tenant’s use of the property, but the landlord must have a permit from the master developer or government entity.
• The landlord wants to use the property themselves or for their first-degree relatives. In this case, the landlord can’t rent the property for one year.

That said, the landlord must notify the tenant at least 90 days before the expiry of the tenancy contract.

General Provisions in Dubai Rental Laws

• The lease contract will not expire upon the death of the landlord or tenant, and the contractual terms will continue. However, the tenants’ heirs have the right to terminate the contract with a 30-day notice.
• If the landlord sells the property in Dubai, the tenancy contract will continue under the new owner for the fixed term.
• The tenants have the right to refuse to return to the property after reconstruction or renovation. But they must provide the refusal within 30 days.

Rental Disputes

• If the Rental Dispute Tribunal issues a termination of the lease contract, the sublease that was started by the tenant upon the landlord’s approval will continue.
• When the landlord files a claim, the tenant still must pay the rent on time until the claim is considered.

Security Deposit

According to the Dubai rental laws, the tenant must pay a security deposit at the time of signing the tenancy contract. At the end of the contract term, landlords must refund the deposit. However, they can use this security deposit fund for any major maintenance that appears during the tenant’s term.

That said, minor wear and tear that is beyond one’s control is not subject to deduction.

Landlord’s Responsibilities According to the Rental Laws in Dubai

• The landlord must provide the property in very good condition, allowing tenants’ complete amenities.
• The landlord will be responsible for major maintenance and repair, unless agreed otherwise in the contract.
• They must not disconnect services or prevent the tenants from the intended usage of the property.
• The landlord must provide prompt approval to the tenants’ wishes to decorate their home or make minor repairs, which don’t affect the structure of the property.

Tenant’s Responsibilities According to the Rental Laws in Dubai

• The tenant must pay the rent on due dates.
• They must maintain and keep the property as their own and not cause any damage.
• The tenants should obtain a permit from the landlord before making any changes to the property.
• Unless agreed by the landlord, the tenant must not sublease the property.
• The tenants must pay a security deposit to the landlord for the maintenance of the property at the time of the contract’s expiry.
• When the contract expires, the tenant must hand over property possession to the landlord in the same condition that they received it, except for minor wear and tear.
• Tenants must clear the fees and taxes due to the Government entities and departments, unless agreed otherwise in the contract.
• When vacating, tenants must not remove any leasehold improvements made during their term.

FAQs

These were all the rental laws in Dubai that one must know when renting. From rent increase laws to eviction cases, these tenancy laws highlight the rights and responsibilities of both parties, landlords and tenants.

Keep reading the DubaiRent blog to learn more about laws and regulations related to renting in the emirate.