A tenancy contract is the single most significant tool for regulating the rental property market in Dubai. Understanding rental contracts in Dubai, as well as the rights and duties that come with them, will help you avoid misunderstandings, mistakes, and possible consequences as a landlord or tenant in Dubai. MMP has developed the comprehensive guide to tenancy contracts so you know exactly what you’re getting into when you sign the tenancy agreement in Dubai.
In basic terms, a tenancy contract or rental agreement is a legally binding contract that authorizes the tenant to use a property for a certain purpose and for a set amount of time. The lease agreement specifies all lease conditions as well as the mutually agreed-upon expectations and obligations of both parties. A written tenancy contract in Dubai might assist to avoid misunderstandings and potential issues.
WHERE CAN I GET A TENANCY CONTRACT IN DUBAI?
The basic tenancy contract in Dubai may be obtained from the official website of the Dubai Land Department. The tenancy contract may be downloaded by landlords and tenants through the Dubai REST app.
This tenancy contract form is completely customizable and accessible in both Arabic and English. Landlords and tenants have the ability to add or change any unique conditions they choose to put in their tenancy contract.
The basic tenancy contract in Dubai includes the following guidelines:
- Governing laws
- Obligations of the landlord
- Obligations of the tenant
- Contract terms and conditions
- Ejari registration
The Dubai Rental Law No. 26 of 2007 and the consequent relationship between tenants and landlords are governed by the Dubai Rental Law No. 33 of 2008. (2008). These laws govern the rights and responsibilities of landlords and tenants in Dubai.
The rules of Decree No. 43 of 2013 govern all aspects of rising property rents in Dubai. The Rent Dispute Settlement Centre, established by Decree No. 26 of 2013, is in charge of resolving rental problems through arbitration or the courts.
RERA uses the Ejari system to guarantee accurate registration and monitoring of rental contracts in the emirate. To formalize their rental agreement in a government-approved format, all landlords and tenants in Dubai must register their tenancy agreements with Ejari.
When it comes to entitlements and responsibilities, Dubai’s RERA tenancy regulations establish clear guidelines that regulate the tenant-landlord relationship. The distribution of responsibility is apparent, and it goes without saying that the rights of one party become the obligations of the other.
WHAT ARE THE RIGHTS OF TENANTS IN DUBAI?
For the time being, let us examine the rights of tenants in Dubai.
The tenant is entitled to obtain a property that is in excellent shape and comfortable to live in.
Unless otherwise specified in the contract, all repair and restoration of property to make it pleasantly living should be handled by the landlord.
The tenant has complete access to the property. The landlord is not permitted to make any alterations that might interfere with the tenant’s planned use of the property.
Even if the property is sold to a new owner during the length of the renter’s rental contract, the tenant is legally entitled to live there.
The tenant has the right to contest an unfair rent increase that does not comply with RERA’s Rent Increase Calculation.
Any intended changes to the tenancy contract must be communicated to the tenant in writing 90 days before its expiration.
WHAT ARE THE RIGHTS OF THE LANDLORD IN DUBAI?
The Real Estate Regulatory Agency (RERA) property rules in Dubai also clarify landlords’ rights under a tenancy contract.
- Landlords are eligible for the agreed-upon rent amount on the due date.
- The landlord may take a security deposit as insurance against property damage, provided that it is refunded in part or in full at the expiration of the contractual period.
- The tenant may not renovate or redecorate the property without the landlord’s approval.
- After the tenancy contract expires, the landlord is entitled to receive the property in the same condition in which it was turned over to the tenant.
- Landlords have the right to keep any leasehold improvements that the tenant makes.
- Unless otherwise agreed, the tenant is responsible for all property costs, taxes, and government-imposed fees.
Whether you are a landlord or a tenant, it is essential to register Ejari for your lease contract online. Ejari makes the contract legally binding and, if required, streamlines the dispute settlement process. To register Ejari, you must first complete the “consolidated tenancy contract,” often known as the tenancy contract in Dubai.
While the contracting parties are able to add their own contractual conditions, several crucial tenancy clauses are already included.
An addition to the regular contract might be attached by the parties. The addendum must list and explain all of the terms and conditions of the rental agreement. This includes, but is not restricted to:
- Who pays for what services
- What instances require an NOC from the landlord
- To what extent tenants can carry out maintenance (if any)
Unless both parties agree differently, breaking the tenancy contract is only possible if BOTH parties agree. This implies that if the tenant continues to live in the home with no objections from the landlord, the contract term is automatically extended for the same period or one year, whichever is less.
In order to make modifications to the existing contract, the landlord must send the tenant with a 90-day notice issued by registered mail prior to contract expiration.
The rent contract in Dubai does not automatically expire if either the landlord or the tenants die. It is instead transferred to the deceased’s heir unless the successor(s) chooses to terminate the tenancy contract, which takes effect after a 30-day notice to the landlord.
If the property is transferred to a new owner before the end of the tenancy period, the tenant has the right to live there until the end of the contractual term. While it is not legally obligatory to modify the tenancy contract at this time, it is advised to do so with Ejari to avoid any future conflicts.
The Ejari system, in principle, provides a uniform structure for the tenancy contract. This style requires that landlords and tenants provide the following information in their contracts:
- Name and contact details of the tenant
- Name and contact details of the landlord
- Property usage
- Property address, location, building name and size
- The property plot number
- The DEWA premise number
- Agreed rent amount
- Security deposit amount
- Signing date of the contract
- Contract period
- The method of payment
Apart from the normal Tenancy Contract terms listed above, landlords and tenants can include an addendum outlining any extra unique terms and conditions they mutually agreed upon.
The following documents are required to form a rent contract in Dubai:
- Emirates ID
- Copy of passport (landlord and tenant)
- Copy of valid residence visa
- A cheque for security deposit
- A cheque for agency fee (where required)
To make the tenancy contract legally binding, the parties must sign it in the presence of a witness. The Dubai Land Department considers the following individuals to be official signatories for Dubai rent contracts:
- The landlord
- The tenant
- Legal representative of the landlord with a Power of Attorney
- Licenced property management companies
The Power of Attorney is only valid for two years. Once the two-year time expires, it must be re-stamped at the Dubai Courts to be legal.
Only DLD-licensed property management companies are permitted to sign tenancy contracts for the properties they manage.
The law compels you to register your rent contract in Dubai, as well as any changes to it, with RERA. Only when you formalize your rental contract with Ejari is it legally binding. Without it, the law does not interfere or defend both landlords and renters’ rights.
CAN I END MY RENTAL CONTRACT EARLY?
The specifics of early termination of tenancy contracts in Dubai are not governed by Dubai’s tenancy legislation. However, if the tenant decides to leave before the end of the contractual period, the landlord has the authority to deny the remaining rent refund.
The only way to prevent this is if the initial rent contract includes an exit provision that addresses early tenancy termination in Dubai and explicitly specifies the required notice period and the amount of penalty to be levied.
WHAT IS THE PENALTY OR NOTICE PERIOD IN DUBAI FOR TERMINATING A LEASE EARLY?
Again, the notice duration and amount of penalty charged on early termination of tenancy contracts in Dubai are decided by the agreement’s termination clause. In the absence of a termination provision, the tenant must provide at least 60 days’ notice of termination. The amount of the penalty is determined by the landlord.
CAN THE LANDLORD ENTER THE LEASED PROPERTY IN THE TENANT’S ABSENCE?
They cannot, of course. Once the property has been rented, the landlord can only enter with the tenant’s permission, unless the tenancy contract includes an access provision that allows otherwise.
Even if the landlord desires to sell the home and have property viewings on the premises, the tenant’s consent is essential. If the renter receives permission, viewings must be scheduled with a 24-hour notice.
DO I HAVE ANY SPECIAL RIGHTS SINCE I’VE LIVED ON THE SAME PROPERTY FOR YEARS?
No, the duration of property occupation has no bearing on the extension of rights. There are no particular perks or rights for tenants in Dubai, regardless of how long the rental agreement has been in effect.
That’s all we have for you for now: a thorough overview to Dubai tenancy contracts. Now that you know the basic form of tenancy contracts and the regulations that regulate them, you can readily determine the rights and duties of tenants and landlords related to them.