Renting in Dubai: Know Your Rights

May 24, 2024
tenants-rights-in-dubai

Signing a rental agreement is the final step to settling into your new home, but understanding tenant rights in Dubai is equally crucial. As a rapidly growing city and a hub of international business, Dubai hosts a large population of renters seeking affordable and high-quality accommodation. However, navigating the rental market can be complex due to the myriad of real estate laws and regulations that govern landlord-tenant relationships.

In Dubai, tenant rights include protections against unfair rent increases, eviction procedures that require proper notice and justification, and maintenance and repair responsibilities that fall on the landlord. Tenants are also entitled to a safe and habitable living space and protection from discrimination.

Understanding these rights and responsibilities is essential for ensuring fair treatment and safeguarding your interests as a tenant. This article will guide you through all the important information you need to know before signing a tenancy contract in Dubai, helping you stay informed and protected.

Tenant Rights in Dubai: Essential Information for Renters

1. What Factors Influence Rent Increases in Dubai?

RERA determines rent increases based on several factors:

– Property type (residential, commercial, or industrial).

– Freehold or leasehold status.

– Whether it is a villa or an apartment.

– Property location.

– Number of bedrooms.

Data for the average rent is collected from the Dubai Land Department’s Ejari system.

2. When Are Landlords Allowed to Increase Rent?

According to the Dubai Rental Price Index, landlords can increase rent based on the following criteria:

– No increase if the current rent is within the average range.

– 5% increase if the rent is 11-20% below the average.

– 10% increase if the rent is 21-30% below the average.

– 15% increase if the rent is 31-40% below the average.

– 20% increase if the rent is more than 40% below the average.

3. What Is the Notice Period for Rent Increases?

Landlords must notify tenants of any rent increase at least 90 days before the lease renewal date. This is the minimum notice period unless both parties agree otherwise. Tenants are not obligated to accept the increase and can contest it if it does not comply with RERA’s guidelines.

4. What Should Tenants Do If They Refuse a Rent Increase?

If you refuse a proposed rent increase, you must notify the landlord 60 days before the lease renewal date that you will vacate the property. If you wish to negotiate a rent decrease, submit a written request to the landlord within the 90-day notice period.

5. Can Tenants Terminate the Lease Early?

Yes, tenants can terminate their lease early, but landlords are not legally required to refund any rent unless an early termination clause is included in the contract. Dubai does not have a standard law governing early lease termination. To protect yourself, consider adding a clause to your contract that specifies a notice period and any penalties for early termination.

6. What Is the Notice Period and Penalty for Early Lease Termination?

If you decide to vacate the property before the lease ends, you must provide the landlord with a 60-day notice. Typically, you will also need to pay a penalty equivalent to one or two months’ rent. The Real Estate Regulatory Agency (RERA) does not have specific guidelines for early termination, so penalties and refunds are at the landlord’s discretion.

7. Can a Landlord Evict a Tenant Before the Lease Expires?

Under Dubai Tenancy Law, landlords can request eviction before the lease expires under certain conditions:

– Non-payment of rent within 30 days of notice.

– Unauthorized subletting.

– Illegal or inappropriate use of the property.

– Making changes that compromise the property’s safety.

– Urgent maintenance needs.

In these cases, landlords must provide a 90-day notice before the lease ends. For other reasons, a 12-month notice via Notary Public or registered mail is required. If the eviction seems unreasonable, tenants can file a complaint with the Rent Disputes Settlement Centre (RDSC).

8. What Are the Implications of Not Having a Formal Tenancy Contract?

Without a formal tenancy agreement, neither party is legally protected by RERA. The Rent Disputes Settlement Centre or any other governmental entity will not be able to resolve disputes between the landlord and tenant.

9. What Are Tenant Rights in Case of a Rental Dispute?

If a dispute arises, first attempt to resolve it with the landlord. If no agreement is reached, you can file a complaint with the Rent Disputes Settlement Centre (RDSC). Common disputes include unreasonable rent increases or significant deductions from the security deposit. Any rent increase must comply with RERA’s Rental Increase Calculator guidelines.

10. What Rights Do Tenants Have in Case of Demolition or Significant Renovation?

In Dubai, tenants generally have the right to automatically renew their lease once the contractual period ends, as stipulated by Article 25(2) of the Tenancy Law and upheld by the Rental Disputes Settlement Centre (RDSC). However, there are exceptions to this rule, particularly in cases involving the demolition or significant renovation of the property.

Rights in Case of Demolition

If a landlord plans to demolish the property, they must first obtain approval from the relevant authorities in Dubai. This includes securing all necessary documents and licenses. Tenants have the right to challenge the demolition claim by filing a case with the RDSC. The landlord will then need to provide satisfactory evidence, such as prior approval from the Dubai Municipality, to substantiate their claim. According to Article 25 of Dubai’s Rental Law, the landlord must serve an eviction notice 12 months before the eviction date, clearly stating the reason for demolition. This notice must be delivered through a Notary Public or registered mail. Failure to comply with this 12-month notice period will prevent the landlord from evicting the tenant after the tenancy contract ends.

Rights in Case of Renovation

For significant renovations that require the tenant to vacate the property, the landlord must provide a 90-day notice before the lease expires. The landlord must also present a technical report from the Dubai Municipality, or an approved entity, confirming that the renovation cannot be carried out while the tenant is residing in the property. This ensures that the tenant is not unfairly evicted for minor renovations that do not necessitate vacating the premises.

Right of First Refusal

Article 29 of Dubai’s rental law (Law No. 33 of 2008) grants tenants the right of first refusal after the completion of renovation or reconstruction. This means that before the property is offered to new tenants, the previous tenant has the first opportunity to renew the lease or purchase the property. The tenant must exercise this right within 30 days of being notified by the landlord. If the tenant does not make an offer within this period, or if the offer is declined, the landlord is free to lease or sell the property to others. Any disputes regarding the new rent amount can be resolved by the rental committee of Dubai.

To sum up

Navigating the rental market in Dubai can be a complex endeavor, but understanding your rights as a tenant is crucial for a smooth and fair renting experience. From rent increases and eviction procedures to early lease termination and dispute resolution, being well-informed can protect you from potential pitfalls. Always ensure that your tenancy contract is formalized and compliant with RERA guidelines to safeguard your interests. By staying proactive and knowledgeable, you can enjoy a secure and comfortable living environment in one of the world’s most dynamic cities. For more detailed information and updates on tenant rights in Dubai, always refer to the latest guidelines from the Dubai Land Department and the Real Estate Regulatory Agency (RERA).

Leave a Comment