Dubai is the economic and cultural capital of the Middle East, with an eclectic mix of expatriates and locals. The more people living in the city, the more important it becomes for landlords and tenants to understand the tenancy contract rules in Dubai.
The Real Estate Regulatory Agency (RERA), part of the Dubai Land Department (DLD), primarily regulates Dubai tenancy laws. These rules ensure the rights of both parties involved, and therefore, fairness and transparency in the rental process.
- Tenancy Contracts Rules in Dubai
- Tenant’s Rights and Responsibilities
- Dispute Resolution in Tenancy Contract Dubai Rules
- FAQs
Tenancy Contracts Rules in Dubai
A tenancy contract is an agreement between the landlord and tenant that specifies terms and conditions regarding renting the property. In Dubai, the tenancy agreement has to be in writing and both parties need to sign it. The contract has to state:
- Rent amount
- Payment schedule
- The lease period usually runs for a year
- Maintenance responsibilities
- Renewal and termination
Rental contracts are normally for one year, but either party can agree to extend. Any agreement over this time should be clearly stated in the contract.
Rent Increase Rules
The Real Estate Regulatory Agency (RERA) in Dubai controls the rising rent of the place. Landlords may raise it to the market as it has been listed on the Rent Index that RERA usually publishes. The law caps the increase at a certain percentage based on the distance to the market value compared to the existing rate.
According to the tenancy contract rules in Dubai:
- A 5 per cent increase is acceptable if the rent is 10 per cent below market value.
- When the rent is 11 per cent to 20 per cent below the market value, the increase must not exceed 10 per cent.
- When the rent is 21 per cent to 30 per cent below the market value, the increase should not surpass 15 per cent.
- When the rent is 30 per cent below market value, it can be raised by up to 20 per cent.
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Security Deposits
A security deposit is usually taken from the tenant at the start of the tenancy. You will receive the deposit refund at the end of the lease term if you return the property in good condition, free from damage or excessive wear. In most cases, the deposit amounts to 5% of the annual rent for residential properties and 10% for commercial spaces.
Cancellation of Tenancy Agreements
Both the landlords and tenants, have the right to cancel the tenancy agreement before it expires, though there are strict guidelines for its execution.
Tenants
Tenants must provide at least 90 days’ notice, and they may be required to pay rent for the remaining lease term unless agreed otherwise.
Landlords:
Landlords can end the contract in cases such as non-payment or property sale/renovation, but they must give at least 12 months’ notice. Disputes regarding termination can be resolved through the Rental Disputes Center (RDC).
Tenant’s Rights and Responsibilities
Some of the major things tenants need to know about the UAE tenancy law include:
Lease renewal
In case the tenant is paying their rent in good time and maintains the house appropriately, he/she has a right to renew the contract.
Habitability of a house
A landlord is required to keep a house free of hazards and ensure that it is safe for a human being.
Duties of the Tenant
The duties of the tenants include:
- Paying rent on time: Tenants have to keep up with the payment schedule set out in the tenancy agreement.
- Keeping the property: Tenants are responsible for keeping the property in good condition. Major repairs however fall under the landlord’s responsibility.
Dispute Resolution in Tenancy Contract Dubai Rules
If disputes arise, tenants and landlords can approach the Rental Disputes Center (RDC) for mediation and resolution. The RDC offers a legal platform to resolve disagreements over tenancy issues.
FAQs
What is a Tenancy Contract in Dubai?
A tenancy contract in Dubai is a legal agreement between a landlord and tenant that outlines the terms and conditions of renting a property. A tenant must read it properly before signing the tenancy contract to avoid any disputes.
Do the Tenancy Contract Rules in Dubai Allow to Change the Terms of the Contract?
Any changes to the tenancy contract, such as rent amount or lease duration, must be mutually agreed upon by both the tenant and the landlord.
What is the Rental Good Conduct Certificate?
A Rental Good Conduct Certificate is a document issued by a previous landlord or property manager confirming that a tenant paid rent on time, followed rules, and maintained the property well. It’s often used to support new rental applications and show tenant reliability.
What are the types of rental disputes in Dubai?
In Dubai, rental disputes between landlords and tenants often involve issues like rent increases, unpaid rent, maintenance responsibilities, or early lease termination. Other frequent types of rental disputes in Dubai include eviction notices or delays in getting the security deposit back.
Dubai’s tenancy laws aim to balance the interests of both landlords and tenants. Understanding these regulations is essential to ensure smooth renting.
