RENTING IN DUBAI: WHAT A TENANT MUST KNOW

For many UAE residents, renting an apartment or villa is the default choice. When a new resident arrives in the UAE, one of the first things they do is look for a place to live, which for many individuals means renting a property. But how many of us are fully aware of Dubai’s tenancy laws and regulations?

Here are specific rules to bear in mind if you want to rent a house in Dubai:

1. Is there a chance that your rent may go up? Three months before the event, you should have gotten a notification.

Is your contract about to expire? Articles 6 and 14 of the ‘Dubai Law No. 26 of 2007 Regulating Relations between the Landlord and Tenant in the Emirate of Dubai,’ often known as the Dubai Rent Law, states that “In this case, your landlord must notify you of any rent increases 90 days in advance.”

2. The rent rise cannot exceed a specified threshold.

Even if your landlord decides to raise the rent, they are restricted by the Dubai Land Department (DLD). The rising rate is determined by how cheap your rent is compared to your neighborhood’s average rent. It is the maximum rate increase a landlord can make, according to Dubai Land Department.

• If a unit’s current rent is between 21 and 30% less than the average rental value of similar units, the rent can be increased by a maximum of 10% during renewal.

• If the real property unit’s rent is 31 to 40% less than the average rental value of similar units, the landlord may raise the rate by up to 15% of the real property unit’s rent.

• If the real property unit’s rent is less than the average rental value of similar units by more than 40%, the landlord may raise the rent by 20% of the real property unit’s rent.

• The DLD online Rental Index is a valuable tool for renters to determine if their landlord’s rent increase is within certain limitations.

3. Your landlord can’t turn off your electricity or water because you haven’t paid your rent.

Failure to pay your rent might result in significant penalties, including eviction. It is, however, unlawful for your landlord to turn off the electricity and water to your apartment. It is explicitly mentioned in Dubai rent legislation. If the landlord breaks the law, the tenant has the right to submit a “petition order” with the Rental Dispute Centre, requesting that the landlord restore the utility service. A judge will rule within 24 hours after receiving a petition order.

4. In certain circumstances, eviction notifications must be delivered 12 months in advance.

A landlord is legally obligated to provide a 12-month notice for these two forms of eviction –

i. Eviction due to restoration or comprehensive maintenance, and

ii. Eviction due to destruction.

5. You may be evicted if you sublet without approval.

According to the Dubai Rent Law, there are times when a landlord is legally permitted to evict a tenant. When a tenant fails to pay rent within 30 days after receiving a notice, when a tenant uses the property for any illegal purposes or for a purpose that violates public order or morality, or when a tenant sublets the property without the landlord’s agreement, these are among the reasons for eviction.

6. Are you relocating to a new area? You may look at the neighborhood’s average rental pricing.

You may examine prior rentals charged for the same property if you are moving into an apartment or villa and want to know if the bargain you obtained was acceptable.

7. Your tenancy agreement is not the same as your Ejari agreement.

While the terms are often used interchangeably, a tenancy contract is simply a signed agreement with your landlord. In contrast, Ejari is the process of registering that agreement with the Dubai Land Department. To register with Ejari, you’ll need the following information:

i. The name of the rental company or

ii. The landlord’s information, such as a copy of their passport, and

iii. The conditions of the agreement. The tenant is also responsible for the registration fees.

8. Do you and your landlord have a dispute? Make a formal complaint to the Rental Dispute Resolution Centre.

You can submit a formal complaint with the Rental Dispute Settlement Centre (RDSC), which regulates all rent-related cases in the Emirate if there is a dispute between the tenant and the land lord. The RDSC attempts to resolve the matter by a mutually agreeable settlement, which takes 15 days. Don’t hesitate to contact us for a comprehensive overview of the rental dispute resolution process.

9. You’ve been asked for ‘key money.’ Refuse.

Your real estate agent may ask you to submit a security deposit when you are about to seal a deal on a new home lease to demonstrate your sincerity as a buyer. Key money is a term used to describe this type of cash. However, such behaviors are unregulated by law. As a result, landlords, developers, and brokers are not allowed to demand key money.

To get more Information relating to renting in Dubai, please don’t hesitate to contact property lawyers in Dubai UAE.