RERA Tenancy Law in Dubai : A Complete Guide

RERA Tenancy Law in Dubai A Complete Guide

The Real Estate Regulation Agency, popularly known as RERA, is a regulatory framework for Dubai Tenancy laws that control and handle tenants’ powers to exercise and obligations to comply with. In simpler terms, the RERA laws establish authoritative regulations to address the association between the tenant and landlord and summarise each person’s roles and obligations to reduce conflicts and misunderstandings. This blog will delve into various facets of RERA rules for a rent increase in Dubai. 

So let’s get started, shall we?

RERA Laws Governing Tenancy Contracts in Dubai

RERA Laws Governing Tenancy Contracts in Dubai

The Real Estate Regulatory Agency (RERA) holds detailed contractual prerequisites that guarantee the seamless operation of the rental property industry in Dubai as specified in Law No. (26) of 2007.

According to Article 6 of RERA’s Tenancy Law No. (26) of 2007, the duration of tenancy will be immediately extended for the same term or one year (whichever is less), on the identical provisions of service, if the property tenancy deal lapses and the tenant continues to reside in the property without the landlord’s reluctance.

All tenants or property owners must register the tenancy agreement with the Real Estate Regulatory Agency (RERA) through Ejari as per Article 4 of Law No. (33) of 2008. It prevents the property from being leased to two or more parties simultaneously. The rules and restrictions for tenants or property owners regarding the registration of a rental contract with RERA are also stated in Law 33 of 2008.  

According to Decree No. (26) of 2013, a transfer of land ownership to a new owner will not influence the tenant’s ability to inhabit the Dubai property. The decree further deals with resolving disputes arising in the rental contract. On the other hand, Decree No. (43) of the 2013 RERA rental agreement in Dubai defines the RERA rules for a rent increase and specifies that no increment is permitted if the current rent remains up to 10 percent lower than the rent for similar rental units in the same area.

Terms of The RERA Tenancy Laws in Dubai

Below are some important terms and provisions of Dubai rent law according to the Real Estate Regulation Agency (RERA). 

  • According to Article 19 of Law No. 26 of 2007, every tenant renting a property in Dubai must get approval from the landlord before making any modifications to the property. Also, they must obtain a lawful license if it involves any statutory provisions related to rental property laws.
  • Tenants are responsible for keeping the property in the same good and livable condition as when they signed the property tenancy lease. However, note that the landlord can overlook minor damage that wasn’t the tenant’s fault. 
  • Under Dubai tenancy laws, a tenant can readily settle any damages from the security deposit, which gets deducted upon the tenant leaving the property. As noted in Article 20, the tenant may turn to Real Estate Regulation Agency (RERA) seeking help to resolve the issues if the owner refuses to refund the security deposit amount.
  • RERA rental property laws allow the tenant to request significant adjustments to make the property livable. Unless there is a written agreement between the lessee and owner, the tenant is not required to conduct any repair job or bear any expenses.
  • As per the rental lease provisions, landlords must ensure their properties are livable and conducive. However, as mentioned in Article 15, the renters are permitted to accept an unfinished property and complete it, making them responsible for the expenditure.
  • As per Article 17, the landlord has no authority to refurbish the rental property in any way that would interfere with the tenant’s ability to use it completely. Nevertheless, the renovation might start after the renter consents to the landlord’s attempts.
  • Unless there is a conflicting deal among the parties, landlords must maintain and repair the building while the tenant occupies it. 

Amending The Terms of The Contract

As per the Law No. 26 of 2007, RERA is a regulatory body that deals with the tenancy rules and regulations in Dubai. Moreover, except for hotel lodgings and property provided to workers free of charge by their organisations, this law applies to all rented properties located inside Dubai. 

Also, these laws and standards have made modifying the rental contract terms easier. And according to RERA guidelines for tenants and landlords, you must explicitly specify the duration of the lease contract, as it will be challenging to explain the supposed length if the rental agreement does not specify the term time. 

The rental agreement will nonetheless get regarded as being in force for the time frame stipulated until rent gets paid. In addition, if the landlord has no problems, the tenant can make amendments to the duration of the lease agreement for an additional year or for the same duration, whichever is shorter. However, both the tenant and landlord must agree to the amendments in the lease terms unilaterally. 

Terminating Tenancy Contract in Dubai

Terminating Tenancy Contract in Dubai

While no particular RERA rental property law specifically oversees early termination of tenancy in Dubai, Article 7 of the new rental law in Dubai specifies that valid rental contracts cannot be terminated unless the lessee or owner decides upon them unilaterally.

 In addition, if the tenant fails to settle the property rent within thirty days of receiving notice, the landlord might terminate the contract. Also, if tenants utilize the property for purposes other than what is specified in the lease, the landlord may serve eviction papers to the tenant. 

Rent Increments in Dubai

If the property owner plans to increase the rent for the next term, they can do that after complying with the RERA rules for rent increase and checking the RERA calculator for rent increase norms. The landlord needs to give a 90-day notice to the lessee before reviving the agreement. On the other hand, the tenant can agree to the rental increase or reject it by providing the lessor 60 days’ notification before the rental agreement date to leave the rental property. 

General Obligations of Tenants in Dubai

Here are some general obligations tenants must follow according to Dubai tenancy laws. 

    • Dubai tenancy laws state that the tenants may not make any modifications or conduct any repair or service jobs to the rental property unless authorised by the lessor and obtaining approval from competent authorities. 
    • Unless the tenancy contract specifies the opposite, the tenant must pay all expenses and state taxes due to government institutions and divisions for using the property.
    • Upon the expiry of the tenancy contract, the tenant must relinquish possession of the rental property to the landlord without any physical damage. Also, in case of any disputes arising related to Dubai tenancy contract renewal rules, the issue must get reported to the Tribunal. 

General Obligations of Landlords in Dubai

General Obligations of Landlords in Dubai

Here are some general obligations landlords must follow according to Dubai tenancy laws. 

    • The landlord remains accountable for offering the property to the tenant in a livable condition and letting the tenant fully utilise the rental property as stated in the contract. 
    • The landlord will be accountable for any damage, impairment, defect, and wear and tear happening to the property for causes that are not the tenant’s responsibility.
    • Unless otherwise decided by the tenant and the landlord, the landlord will remain liable for the property’s supervision works and for fixing any physical damage. 

Vacating Notice To The Landlord

The landlord may issue an eviction notice if the renters seriously damage or utilize the property for illegal purposes. In addition, according to Law No. (33) of 2008, the tenant is not obligated to serve any prior intimation to the landlord for vacating the property upon the contract expiry. 

Nevertheless, precedence is given to the tenancy provisions, which may demand a detailed notice period in the case of non-renewal of the rental agreement. Moreover, when vacating a rental property, the landlord must refund the tenant’s security deposit in full or the remaining balance after making the required deductions.

Tenancy Law in Dubai Regarding Evictions

Tenancy Law in Dubai Regarding Evictions

As per Dubai tenancy laws, evictions are unavoidable and legal under the circumstances described below.

  • Before the Expiry of the Tenancy Contract

    • Tenant utilises the real estate property for a purpose other than the one for which they leased it or uses the property in a way that infringes the construction and other land statutes. 
    • The tenant utilises the property or authorises others to use it for any unlawful intent or pursuit that infringes public order or values.
    • Tenant fails to keep any obligation imposed on them by the law or abide by any of the terms of the tenancy contract.
  • Upon Expiry of The Tenancy Contract

    • The property owner desires to demolish the property to rebuild it or make new additions to the existing property that might stop the tenant from using it. 
    • When the property owner wishes to market the leased property or take possession for personal use. 

Dispute Resolutions

Whenever any dispute arises between the landlord and tenant and they cannot reach a consensus, one or both parties have the right to register a formal complaint to the Rent Disputes Settlement Centre at Dubai Land Department.

The Bottom Line 

Dubai rent laws have always been a primary topic for discussion in the real estate domain. Whether a tenant is leasing an apartment or a villa in Dubai, they must be aware of these rules. Also, tenants must note that these laws are devised to protect them from legal action and foster positive tenant-landlord relations. 

 

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Frequently Asked Question (FAQs)

What Are the Rights of Tenants in Dubai?

As per the Dubai rent law, tenants in Dubai are entitled to extend their leases if they notify their landlord 90 days before it expires. Also, as long as the landlord gives the required notice period and the tenant is not removed, they have the right to remain in the rented property.

How Much Notice Does a Landlord Have to Give a Tenant to Move Out of Dubai?

If you are a new tenant wondering if a landlord can ask a tenant to move out in Dubai, the answer is it depends. And the landlord must deliver the notice to the tenant and inform them of the grounds for eviction at least twelve months before the scheduled eviction date via a Notary Public or certified mail.

How Long Does It Take To Evict a Tenant in Dubai?

The landlord may demand eviction if a commercial property tenant shuts operations down for 30 consecutive or 90 non-consecutive days without providing any justification.

Can I Terminate the Tenancy Agreement Early in Dubai?

The early termination of lease agreements is not permitted under Dubai tenancy laws.

How Long Is the Notice Period for Tenants in Dubai?

According to the laws related to tenant rights in Dubai, it is the landlord's responsibility as a property owner to give a 12-month notice of eviction to the tenant.

Can the Landlord Increase Rent in Dubai After One Year?

As per the RERA rules on rent increase, landlords can raise the rent of a property as long 90 days' notice is given before the lease's expiration. But the landlord can only increase the rent up to the restrictions set by the Dubai Land Department.

Is Dubai Rent Fixed for Three Years?

All new rental leases in Dubai would remain subject to the three-year no-increment cap, which is anticipated to make things more seamless for the tenants.

What Is the Maximum Rent Increase Allowed in Dubai?

The rental amount that can be increased when the rent of any property is 21–30% below market value is 10%. In addition, if the property rent remains between 34% and 60% less than the current market value, the increment can only be 15%. Moreover, the maximum increase may be up to 20% if the rent remains less than 40% or more of the property's market value.

What Happens if You Don’t Pay Rent in Dubai?

If any tenant fails to pay rent on time, the landlord holds the authority to demand eviction by filing a case in the Special Tribunal in the Rent Committee.

Manshi Yadav A postgraduate in literature, Manshi has fantasised about writing novels like J.K Rowling’s Harry Potter and Mary Wollstonecraft’s Frankenstein Instead, she became a book fanatic passionate about writing content on education, UI, health, and travel. She’s a pro at engaging readers and making them crave for more exciting articles.
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