Whether you’re a tenant or a landlord, it’s important to know your rights when renting a property. RERA, Dubai’s real estate regulatory agency, have created laws including No. 26 of 2007, No. 33 of 2008, and Decree No. 2 of 2011, which outline the roles and responsibilities of tenants and landlords.
To save you time, this handy guide will give you a great introduction to tenant and landlord rights in Dubai in 2023, including:
- Tenant frequently asked questions
- What to do if your landlord wants you out
- Tips for moving out of your rental
- Your rights as a landlord
- Top tips for landlords
Tenant frequently asked questions
How many cheques are usually needed?
In Dubai, rent is usually paid in the form of cheques. The number of cheques will be agreed upon between you and the landlord when negotiating the rental. The total rent is then divided by the number of cheques and paid at intervals throughout the rental.
The number of cheques typically varies between one and six payments. Landlords typically prefer a lower number of cheques, but your real estate agent will be able to help you negotiate this based upon your circumstances. If paying by one cheque, the total rent will be paid via one payment at the start of the rental. If you were to pay by four cheques, you would give the landlord four different cheques. One for the first day of the tenancy, and three post-dated cheques at 3-month intervals during the tenancy.
The Dubai Land Department recently announced plans for tenants to be able to pay via online banking rather than cheques in future, which would move Dubai more in line with many developed economies around the globe.
How do you negotiate a better rate?
In general, paying via one cheque (a one-off payment for the full amount) will get you the best rental rate. Landlords will often charge a higher rent to tenants wishing to pay with more cheques, so paying with fewer cheques or making a larger initial payment should get you a better deal.
Does the landlord have a right to ask for a security deposit?
In Dubai, landlords can require tenants to pay a security deposit at the beginning of a tenancy agreement. This is almost always the case, so you should expect this whenever searching for a rental property. The security deposit is typically 5% of the annual rent for an unfurnished property, or 10% of the annual rent for a furnished property.
As long as the property is returned to the landlord in good condition at the end of the tenancy, the security deposit should be returned partially or in full to the tenant upon vacating the premises.
Who pays for repairs if something within the property breaks during my tenancy?
When renting a property, the chances are you’ll experience something breaking or requiring maintenance during your tenancy. In general, maintenance and repairs are the responsibility of the property owner. However, it is very common for tenancy contracts to state that the landlord will only cover major repairs that cost more than a certain amount. For example, the landlord may only cover the cost of repairs if they exceed AED 1,000, with any less expensive repairs being paid for by the tenant. You should therefore be careful to check this in your tenancy contract prior to signing for a rental property.
Are there any clauses I can use if I need to break my contract?
Whether there are any clauses you can use to break your contract early will depend on the specific terms and conditions of your tenancy contract. You should therefore check if your contract includes an exit or early termination clause. Without this, your landlord might ask for compensation. Some contracts include break clauses where you pay your landlord a certain amount as a penalty for terminating early. If the option to end the contract early is important to you, then you should discuss this with your agent prior to agreeing to a tenancy, to ensure it is negotiated and included in the tenancy agreement.
Can my landlord evict me before my tenancy agreement is completed?
No, your landlord cannot evict you prior to your tenancy agreement being completed. Your landlord can only ask you to vacate through a 12-month written notice via registered mail or notary public.
My landlord wants to increase my rent. How much can they increase it legally?
For a comprehensive overview, check out our post:
Can my landlord increase my rent in Dubai in 2023?
But in short, yes the landlord can increase your rent. But, this can only happen when your tenancy renews (not at any time during the tenancy) and the landlord must give you 90 days’ written notice prior to the renewal date. The landlord can also only increase the rent by a certain amount, which is dictated by the DLD’s Rental Index.
I am unable to use the communal areas of my building because my landlord has not paid the service charges. What can I do about this?
if your landlord has failed to pay the service charges, then the first step is to contact them to discuss the problem. In the event that they fail to make the payment, you may be able to seek legal recourse. The Dubai Rental Disputes Settlement Centre can be contacted at 600 555 556.
It seems that all the rental properties I am interested in are going very quickly. When I put a deposit on a property, how can I be sure nobody will undercut me 24 hours later?
The Dubai real estate market moves very quickly, so it’s very normal to enquire about properties only to find that they have already been rented out. Once you find a property that you wish to rent and have negotiated the tenancy, the agent will collect a deposit from you. As soon as your deposit has been received, the property should be reserved for you and removed from the market. However, to be absolutely certain that the rental does not fall through, you should sign a tenancy contract as soon as possible with the landlord to finalize the arrangement.
What to do if your landlord wants you out
When tenants choose to renew their tenancy, RERA rules restrict how much landlords can increase the rent. This means that even when average market rents are rising quickly, landlords are restricted to only increasing the rent by a certain %.
In our 2022 Market Report, we reported that average rents increased by 36% in 2022. With such rapidly increasing rents, tenants increasingly chose to renew their tenancy agreements because it was much less expensive than finding a new rental.
In 2023, many landlords will know that they could charge a higher rent if they could evict their existing tenants and find new ones. This means there is a chance your landlord will try to evict you from the property. But what are your rights if this happens?
Article 25 of Law No. (26) of 2007 states that there are only a few very specific reasons why a landlord can evict a tenant prior to the end of a tenancy agreement. These include:
- The tenant fails to pay rent within 3 days of being served a written notice from the landlord
- The tenant subleases the property without the landlord’s approval
- The tenant uses the property for any other purpose than it was leased for
- The property is used for immoral or illegal activities
- The tenant causes damage or makes unsafe changes to the property
- The tenant fails to comply with terms of the tenancy or the law
- If demolition of the property is required by the government for urban development
Unless one of the above conditions is met, you cannot be evicted during the tenancy.
The landlord can seek to evict the tenant for one of the following reasons:
- The landlord wishes to reconstruct or demolish the property
- Major maintenance or renovation is required, which cannot be done whilst the tenant is living there
- The landlord wants to sell the property
- The landlord wants to either live in the property or have one of their first-degree relatives live there
But, in all of the above examples, 12 months written notice must be provided.
If you feel that your landlord is attempting to evict you illegally, and all attempts to communicate with them have failed, you can file a RERA complaint at the Dubai Land Department’s Rent Disputes Settlement Centre.
Tips for moving out of a rental property
Moving out of your home for rent? Keep these tips in mind to avoid last-minute hiccups.
1. Settle outstanding bills. Are there any remaining bills you need to pay? If you are moving out, you may owe a number of outstanding payments, including cleaning costs, DEWA bills, cooling charges, internet fees, and repair fees.
2. Do a thorough inspection. To get your security deposit back, make sure the property is in good shape and that you’re not liable for any repairs. In case you have been living in a fully or partially furnished property, check everything for any damage and have it fixed if required.
3. Tidy up before leaving. Before you leave, make sure the property is neat and tidy to avoid extra cleaning charges. You can often have your removal company arrange for the cleaning and garden tidying for you.
4. Disconnect all utilities. Give local service providers of phone, internet, or TV connections sufficient notice of your move out so that they can arrange your final bill. Ensure that you notify DEWA and get back your utility deposits too.
5. Take all your belongings. On move-out day, make sure you take all your belongings with you. Be sure to double-check check as landlords are not obligated to store your things once you leave.
Check out our guide on the Tenancy contract renewal rules in Dubai.
Your rights as a landlord
Whilst it doesn’t happen too often, some landlords experience issues where their tenants don’t pay, sublet or abscond.
The most important piece of advice we give? Before signing a lease, take the time to vet the tenant. Ensure that you, or a trusted real estate agent has taken the time to meet the tenant and vet them fully. Get all identification and affordability documentation. Ensure that there is a comprehensive tenancy contract in place, outlining all agreed terms, including a ‘no subletting’ clause. and make sure it is registered with Ejari.
Regarding cheques, if the contract is in the name of the tenant, then the cheques have to be issued by the tenant. If this is not the case, the landlord should have the details of the third party providing the rent cheques to the renter on file, along with a letter confirming the cheques were handed to the tenant. As soon as the tenant occupies the property, the landlord should inspect it to ensure that it hasn’t been sublet.
With regards to evictions, there are very specific rules in place to protect the rights of both landlords and tenants. Check out the ‘What to do if your landlord wants you out’ section to understand exactly what conditions need to be met to evict a tenant, and how much notice is required.
Top tips for landlords in Dubai
1. Hire a property manager. Even experienced landlords believe that hiring a competent a property manager is essential to maximize the value of their rental properties. Not only that, you get to avoid all the headaches – including vetting tenants, collecting rent, handling complaints and maintenance and repair requests.
2. Treat tenants with respect. If you decide to lease your property without a property manager, try to maintain a good relationship with your tenant. If there is mutual respect, your tenant is more likely to take better care of your property, which is good for your investment in the long-term.
3. Know the law. Thinking of raising the rent or want to evict a problematic tenant? Not so fast. Landlords have rights as well as responsibilities to fulfill under the Dubai law. As a landlord, understanding your obligations will help you protect yourself and your rental property.
4. Understand the contract. Make sure the tenancy contract is clear. For example, it should specify which maintenance and repair requests you are responsible for. If you feel the tenant is asking you to carry out maintenance that is outside your requirement, refer them back to the contract.
5. File a rental dispute case. If you have exhausted all possible options including speaking with your tenant to work out an arrangement for any issues that arise, consider opening a case. The Rental Dispute Centre caters to both landlords and tenants to ultimately find a resolution for both parties.
