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 potential ramifications as a landlord or tenant in Dubai. Property Search has developed the comprehensive guide to tenancy contracts so you know exactly what you’re getting into when you sign the rental agreement in Dubai.
WHAT IS A DUBAI TENANCY CONTRACT?
In simplified terms, a tenancy contract or rental agreement is a legally binding contract that permits the renter 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 leasing agreement in Dubai might assist to avoid misunderstandings and potential issues.
WHERE CAN I GET A TENANCY CONTRACT IN DUBAI?
The basic rental contract in Dubai may be obtained from the official website of the Dubai Land Department. The tenancy contract may be downloaded by landlords and renters through the Dubai REST app.
This tenancy contract form is completely customizable and accessible in both Arabic and English. Landlords and renters have the ability to add or change any unique conditions they choose to put in their rental agreement.
The basic tenancy contract in Dubai includes the following provisions:
- governing legislation
- Landlord’s Obligations
- The tenant’s obligations
- Terms and conditions of the contract
- Registration for Ejari
Relevant: Dubai Land Department’s REST app: everything you need to know
WHAT ARE DUBAI'S TENANCY LAWS?
The Dubai Rental Law No. 26 of 2007 and the consequent relationship between renters and landlords are governed by the Dubai Rental Law No. 33 of 2008. (2008). These laws govern the rights and responsibilities of landlords and renters in Dubai.
The provisions of Decree No. 43 of 2013 govern all aspects of rising property rents in Dubai. The Rent Problems Settlement Centre, established by Decree No. 26 of 2013, is in charge of resolving rental disputes through arbitration or the courts.
RERA employs 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 renters in Dubai must register their tenancy agreements with Ejari.
Relevant: Ejari: Everything You Need to Know
TENANTS’ AND LANDLORDS’ RIGHTS AND OBLIGATIONS IN DUBAI
When it comes to rights and duties, 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 renters in Dubai.
- The renter 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 reside there.
- The tenant has the right to contest an unreasonable rent increase that does not comply with RERA’s Rent Increase Calculator.
- Any anticipated changes to the lease contract must be communicated to the tenant in writing 90 days before its expiration.
IN DUBAI, WHAT RIGHTS DO LANDLORDS HAVE?
The Real Estate Regulatory Agency (RERA) property rules in Dubai also clarify landlords’ rights under a tenancy contract.
- Landlords are entitled to receive 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 reimbursed in part or in full at the conclusion of the contractual period.
- The renter may not renovate or redecorate the property without the landlord’s approval.
- When 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 renter is responsible for all property costs, taxes, and government-imposed fees.
Whether you are a landlord or a tenant, it is critical to register Ejari for your lease contract online. Ejari makes the contract legally binding and, if required, streamlines the dispute settlement procedure. To register Ejari, you must first complete the “consolidated leasing contract,” often known as the tenancy contract in Dubai.
WHAT ARE THE KEY TENANCY CONTRACT CLAUSES TO KEEP IN MIND?
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:
- What services are paid for by whom?
- What situations necessitate a letter of authorization from the landlord?
- How far may tenants go in terms of 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 conclusion 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.
WHAT ARE THE DETAILS OF A DUBAI TENANCY CONTRACT?
The Ejari system, in essence, provides a uniform structure for the tenancy contract. This style necessitates that landlords and tenants provide the following information in their contracts:
- Tenant’s name and contact information
- The landlord’s name and contact information
- Property utilization
- Address, location, building name, and size of property
- The plot number of the property
- The DEWA facility number
- Rent agreed upon
- Amount of the security deposit
- Date of contract signature
- Contract duration
- The payment method
Aside from the normal Tenancy Contract terms listed above, landlords and renters can include an addendum outlining any extra unique terms and conditions they mutually agreed upon.
WHAT DOCUMENTS ARE REQUIRED FOR A RENT CONTRACT IN DUBAI?
The following documents are required to form a rent contract in Dubai:
- Emirates Identification
- Passport photocopy (landlord and tenant)
- a copy of your valid residency visa
- A security deposit check
- A check for the agency charge (where required)
IN DUBAI, WHO IS REQUIRED TO SIGN THE RENT CONTRACT?
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
- The landlord’s legal representative with a Power of Attorney
- Property management firms that are licensed
Please keep in mind:
- The Power of Attorney is only valid for two years. After the two-year time expires, it must be re-stamped at the Dubai Courts to be legal.
- Only DLD-licensed property management businesses are permitted to sign tenancy contracts for the properties they manage.
