A Complete Guide to Dubai Tenancy Law

What Is RERA?

The Real Estate Regulatory Authority is referred to as RERA. It is an organization founded in Dubai, United Arab Emirates (UAE), and is in charge of policing and directing the real estate market in the Emirate of Dubai. The Dubai Real Estate Regulatory Agency Law, commonly known as Law No. 27 of 2007, is what gave rise to RERA. With the aim to regulate the real estate sector and address the issues faced by home buyers. It has the following objectives:

• To protect the allottees' interests and assure their accountability
• To uphold openness and lower the likelihood of fraud
• To establish professionalism and pan-Indian uniformity
• To improve the exchange of accurate information between homebuyers and sellers
• To place higher obligations on investors and builders alike
• To boost the industry's dependability and consequently boost investors' trust.

The Main Rent Laws in Dubai

There are four key rules to bear in mind when it comes to Dubai's RERA tenancy Law:

1. Law No. (26) of 2007: This legislation governs how landlords and renters interact in Dubai.
2. Law No. (33) of 2008: It was changed by this legislation, which also controls Dubai's landlord-tenant relationship.
3. Decree No. (26) of 2013: The Rent Issues Settlement Centre (RDSC), which manages all forms of rental issues in Dubai, was founded by this statute.
4. Decree No. (43) of 2013: In Dubai, this rule particularly controls rent increases.

Check out our blog about the best areas to rent an apartment in Dubai.

Tenancy Contract in Dubai

Simply put, a tenancy agreement or rental contract is a legally enforceable agreement that grants the renter use of a property for a certain usage and duration. The lease conditions, as well as the mutually agreed-upon expectations and requirements of both parties, are all specified in the agreement. Formal leasing agreements in Dubai assist to avoid misunderstandings and any future conflicts. 

Amendment to the Terms of the Contract

A lease amendment is a written agreement between a landlord and tenant that allows the parties to legally change the terms of an existing lease. When changes take place that the original agreement does not address, adding a lease amendment to an existing lease can guarantee landlords are completely protected.

Learn more about how to protect your investment in Dubai real estate market.

Terminating Tenancy Contract in Dubai

Here are some tips for tenants in Dubai who are vacating a rental before the end of their lease:

• Check for an exit clause in your contract that would let the tenancy agreement be terminated early. When signing a lease agreement, tenants must ensure that the document has a termination provision. If they find themselves in the situation of having to quit a lease early, this will spare them a great deal of headaches and haggling.
• Contact your landlord if your contract does not contain such a clause. Describe the circumstances and the necessity to violate your lease agreement. In the event that your landlord agrees to negotiate a departure settlement, you can be required to pay a penalty sum.
• As an alternative, you may offer to help your landlord locate a new renter so they won't incur any financial loss. However, you will probably need to pay the landlord compensation if you are unable to locate a renter in time.

The Increase in the Rent Value in Dubai

According to recent real estate research, the cost of renting a villa or apartment in Dubai increased at an unprecedented rate in 2022. The average yearly rent in Dubai increased by 28.5% in 2023, the largest rise on record in the city, according to real estate services and investment firm CBRE.

learn more about the Return on investment in Dubai.

Responsibilities and Duties of a Tenant in Dubai

There are a number of obligations and responsibilities that you must meet as a renter in Dubai. The UAE's rental regulations specify certain obligations with the goal of preserving a positive relationship between renters and landlords. The following are some of the principal duties of a tenant in Dubai:

• Pay rent when due and take care to keep the property in good condition.
• Deposit a security fee.
• Deliver the rental property to the landlord in the same state as when it was received.
• Pay any dues or taxes to the relevant government agencies.
• When transferring ownership of the property, don't undo any changes.
• Subletting a property requires the landlord's permission.

Responsibilities and Duties of the Landlord (Lessor)

The lessor is required to report any significant flaws in the property under the lease that the lessor is aware of and the lessor is unaware of. The lessor is required to ask the lessee to give him ownership of the property. The lessor may agree in writing with the lessee that the lessee may possess the property for the period of time indicated in the contract without interruption if the lessor pays the rent stipulated in the lease when due and complies with all other terms and conditions.

Tenancy Law in Dubai Regarding Evictions

Dubai's property rent legislation outlines the correct eviction process. If you want to evict a renter in Dubai, you must:

• Have a legal justification for the removal in accordance with Article 25 of Law No. (26) of 200
• Send the renter a written 30-day eviction notice by certified mail or public notary.
• Get RERA to approve your eviction.

Edited by Imtilak Global ©

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