A tenancy contract in Dubai is the single, most important tool that regulates the rental property market. Understanding the rental contracts in Dubai and the rights and obligations attached to it can help you avoid ambiguities, errors and possible fallouts as a landlord or tenant in Dubai. MyBayut has compiled the ultimate guide to tenancy contract so that you know what you’re in for when you seal the tenancy deal in Dubai.
In simple terms, the tenancy contract or rental agreement is a legally binding contract that allows the tenant to use a property for a particular purpose and specified time period. The agreement details out all the lease terms and the mutually agreed-upon expectations and requirements of both parties. Having a formal rental agreement in Dubai helps to prevent misunderstandings and future disputes that may occur.
The standard rental contract in Dubai can be downloaded from Dubai Land Department’s official website. Landlords and tenants can download the tenancy contract from the Dubai REST app.
This fully-editable tenancy contract form is available in both Arabic and English. The landlords and tenants have the right to add or amend any special conditions that they might want to include in their rental contract.
Dubai’s standard tenancy contract covers the following aspects:
Ejari registration and other associated costs are among additional costs of renting in Dubai. So make sure you are aware of them beforehand.
Whether you live in a villa or studio flat for rent in Dubai, you must know about the tenancy laws. The rental contracts in Dubai and the resulting relationship between tenants and landlords are regulated by the Dubai Rental Law No. 26 of 2007 and the amendment Law No. 33 (2008). These laws deal with the rights and obligations of landlords and tenants in Dubai.
All matters of increasing property rent in Dubai are dealt with under the stipulations of Decree No. 43 of 2013. The settlement of rental disputes via arbitration or courts is administered through the Rent Disputes Settlement Centre that was formed under Decree No. 26 of 2013.
To ensure proper registration and monitoring of rental contracts in the emirate, RERA uses the Ejari system. It is mandatory on all landlords and tenants to register their tenancy agreements in Dubai on Ejari to formalise their rental agreement in a government-approved format.
When it comes to rights and obligations, the RERA tenancy laws in Dubai have definitive parameters that government the tenant-landlord relationship. The division of responsibilities is clearly defined and it is needless to say, that the rights of one party become obligations of the other.
For now, let’s look at the rights of tenants in Dubai.
The Real Estate Regulatory Agency (RERA) property laws also define the rights of landlords under a tenancy contract in Dubai.
Whether you’re a landlord or tenant, it is important to register Ejari online for your tenancy contract. Ejari makes the contract legally binding and facilitates the process of dispute resolution, where necessary. In order to register Ejari, you first need to fill out the “consolidated lease contract” more commonly called the tenancy contract in Dubai.
While the contracting parties are free to add their own contractual clauses, there are some important tenancy clauses that are already part of the contract.
The parties can attach an addendum to the standard contract. The addendum must enumerate and elaborate all terms and conditions governing the rental agreement. This can include, but isn’t limited to:
Breaking the tenancy contract is only possible if BOTH parties agree to it, unless they agree otherwise. This means the contract term is automatically renewed for the same duration or 1 year, whichever is lower, if the tenant continues to live in the property with no objections from the landlord.
The landlord MUST provide the tenant with a 90-day notice sent via registered mail prior to contract expiry, in case they want to make any changes to the existing contract.
If the landlord or the tenants dies, the rent contract in Dubai does not terminate automatically. It is instead transferred to the deceased’s heir unless the heir(s) opts for the termination of tenancy contract, which comes into effect after a 30-day period of informing the landlord.
If the property is transferred to a new owner before the end of the tenancy term, the tenant has the right to continue living in the property until the end of the contractual term. While it is not legally required to change the tenancy contract at this point, it is advisable to update the details with Ejari to avoid any disputes at a later date.
Essentially, the Ejari system has a standard format for the tenancy contract. This format requires landlords and tenants to include the following details in their contract:
Besides the above mentioned standard Tenancy Contract terms, the landlords and tenants can add an addendum that outlines any other special terms and conditions they mutually agreed upon.
To prepare a rent contract in Dubai, you require the following documents:
Once you have drafted the tenancy contract, the parties need to sign it in front of a witness to make the agreement valid. The Dubai Land Department considers the following groups of people to be official signatories for rent contracts in Dubai:
Please note:
When dealing with rental contracts in Dubai, people often have the following queries.
The law requires you to register your rent contract in Dubai and any amendments thereof with RERA. Your rental contract is deemed legally binding only when you formalise it through Ejari. Without it, the law does not intervene in or protect the rights of both landlords and tenants.
The tenancy laws in Dubai do not dictate the specifics of the early termination of tenancy contracts in Dubai. However, if the tenant chooses to vacate the property before the end of the contractual term, the landlord has the right to refuse the remaining rent refund.
The only way this can be avoided is if the original rent contract has an exit clause that addresses the early termination of tenancy in Dubai and clearly outlines the required notice period and the amount of penalty to be charged.
Again, the notice period and the amount of penalty payable on early termination of tenancy contracts in Dubai depends on the termination clause included in the agreement. In case there is no termination clause, the tenant much give at least 60 days’ notice for termination. The amount of penalty depends on the landlord to decide.
No, they cannot. Once the property is leased the landlord can only enter the premises with the tenant’s permission, unless the tenancy contract includes an access clause that allows otherwise.
The tenant’s consent is required even if the landlord wishes to sell the property and conduct property viewings on the premises. A 24-hour notice is also required for the viewings to take place after the tenant grants permission.
No, the length of property occupation has nothing to do with the extension of rights. Regardless of how long the rental agreement has been valid, there are no special privileges or rights for tenants in Dubai.
That’s all we have for you now – a complete guide to the tenancy contracts in Dubai. Now that you understand the basic structure of and the laws that govern the tenancy contracts, you can easily deduce the rights and obligations of tenants and landlords attached to it.
In case of any unsolvable issues between the landlord and tenant, the parties can always register RERA complaint Dubai via the Rental Dispute Settlement Centre.
Renting in Dubai has its own dynamics, quite different to the tenancy rules in other emirates. If you’re a potential tenant, it’s best to learn about how the property rental market in Dubai works.
Whether you’re interested in villas for rent in Dubai or are more inclined towards the portfolio of rental apartments in Dubai, there is no shortage of options. You can find it all, from a 1 bedroom for rent in Dubai to a larger unit.
However, it is a good idea to evaluate the pros and cons of renting apartments vs villas in Dubai to get a clearer idea of which property type works best for you.
