Tenancy Contract in Dubai

A tenancy contract in Dubai plays a crucial role in managing the rental property market. Whether you are a landlord or a tenant, it is important to understand the details of these contracts to avoid mistakes, misunderstandings, and potential conflicts.

Therefore, in order to help you navigate this important aspect of renting in Dubai, we have put together a comprehensive guide to tenancy contracts in Dubai. t will be when it comes time to finalize your rental agreement. Let’s start!

What is a Tenancy Contract in Dubai?

A tenancy contract, also known as a rental agreement, is a legally binding document that gives the tenant the right to use a property for a specific purpose over an agreed period.

The tenancy contract outlines the lease terms and clarifies the expectations and responsibilities of both the landlord and tenant. Having a formal rental agreement in Dubai is crucial as it helps avoid misunderstandings and potential disputes in the future.

How Can You Download the Tenancy Contract in Dubai?

You can download the standard rental contract in Dubai from the official website of the Dubai Land Department. Additionally, both landlords and tenants can access the tenancy contract through the Dubai REST app.

This editable contract is available in both Arabic and English. That means, the landlords and tenants can customize it with any special conditions they wish to include.

The standard tenancy contract in Dubai typically includes:

Responsibilities of the landlord
Governing laws
Responsibilities of the tenant
Terms and conditions of the contract

Do not forget that registering the contract through Ejari, as well as any related costs, are important aspects of renting in Dubai. It is a good idea to familiarize yourself with these expenses ahead of time.

Documents Required for Rent Contracts in Dubai

Following are the documents needed for the tenancy contract in Dubai.

Emirates ID
Copy of valid residence visa
Copy of passport (tenant and landlord)
A cheque for security deposit
A cheque for agency fee (if required)

What are the Elements Included in Tenancy Contact in Dubai?

The Ejari system provides a standard format for tenancy contracts. This format requires both landlords and tenants to include certain key details in their agreement, such as:

Property address, including location, building name, and size
Property plot number
DEWA premise number
Tenant’s name and contact information
Landlord’s name and contact information
How the property will be used
Agreed rental amount
Security deposit amount
Duration of the contract
Date the contract is signed
Payment method

In addition to these standard terms, landlords and tenants can also include an addendum to specify any special conditions they agree on.

Who Needs to Sign the Tenancy Contract Dubai?

After drafting the tenancy contract, it must be signed by both parties in the presence of a witness to be considered valid. In Dubai, the Dubai Land Department recognizes the following individuals as official signatories for rental agreements:

The tenant
The landlord
Licensed property management companies
A legal representative of the landlord with Power of Attorney

Keep in mind:

The Power of Attorney is valid for two years and must be re-stamped at the Dubai Courts to remain effective after that period.
Licensed property management companies can only sign tenancy contracts for the properties they oversee.

Important Tenancy Contract Clauses to Keep in Mind

Before you sign a tenancy contract in Dubai, it is essential to read and fully understand it. While you and the other party can add your own clauses, there are key terms that are typically included in standard agreements.

You can also attach an addendum to the main contract to clarify specific terms and conditions related to the rental arrangement. This might cover areas such as:

Who is responsible for paying for various services
The extent to which tenants are allowed to handle maintenance tasks
Situations that require a No Objection Certificate (NOC) from the landlord

It is important to note that breaking the tenancy contract requires agreement from both parties unless stated otherwise.

If the tenant continues to live in the property without any objections from the landlord, the contract will automatically renew for the same time period or for one year, whichever is shorter.
If the landlord wishes to make any changes to the contract before it expires, they must provide the tenant with a 90-day notice via registered mail.
In the event of a landlord or tenant passing away, the rental contract does not automatically end. Instead, it will transfer to the deceased’s heir unless the heir decides to terminate the agreement, which takes effect 30 days after notifying the landlord.
If the property changes ownership before the tenancy term ends, the tenant has the right to remain until the contract expires. While it is not legally required to update the tenancy contract in this situation, it is a good idea to refresh the details with Ejari to prevent any future disputes.

Understanding Tenancy Laws in Dubai

When talking about the tenancy contracts in Dubai, it is important to understand the RERA tenancy rules as well.

Overview of Rental Contracts

In Dubai, tenancy agreements are governed by the Real Estate Regulatory Agency (RERA) and the relevant tenancy laws.

If you are renting a villa, studio, apartment, or any similar property, it is essential to familiarize yourself with these regulations, particularly Dubai Rental Law No. 26 of 2007 and its amendment, Law No. 33 of 2008. These laws outline the rights and responsibilities of both tenants and landlords.

Rent increases are regulated by Decree No. 43 of 2013, while the Rent Disputes Settlement Centre handles any rental disputes through arbitration or court proceedings, as established by Decree No. 26 of 2013.

In order to maintain proper oversight and registration of rental agreements, RERA requires the use of the Ejari system. All landlords and tenants must register their rental contracts through Ejari to formalize their agreements in an approved format.

Rights and Responsibilities of Tenants and Landlords

The RERA tenancy laws provide clear guidelines regarding the duties and rights of landlords and tenants.

Tenant Rights in Dubai

Here are the key rights that tenants enjoy in Dubai:

Habitable Conditions: Tenants have the right to receive a property that is in good condition and suitable for living.
Fair Rent Increases: Tenants can contest any rent increase that does not comply with the RERA Rent Calculator.
Maintenance Responsibility: The landlord is generally responsible for any necessary maintenance to keep the property livable, unless specified otherwise in the rental agreement.
Use of Property: Tenants have the right to fully utilize the property in legal ways. Landlords cannot make alterations that interfere with this use.
Tenure Security: If the property changes ownership during the tenancy, the tenant retains the right to continue living there until the lease expires.
Notification of Changes: Landlords must notify tenants in writing about any proposed changes to the tenancy agreement at least 90 days before the contract expires.

Landlord Rights in Dubai

Landlords also have specific rights under Dubai’s tenancy laws:

Timely Rent Payment: Landlords have the right to receive rent on the agreed date each month.
Leasehold Improvements: Any improvements made by tenants can remain with the property unless otherwise agreed.
Security Deposit: They can collect a security deposit to cover potential damages, which should be refunded partially or fully at the end of the lease.
Permission for Changes: Tenants must obtain permission from the landlord before making any renovations or decorations to the property.
Payment of Charges: Tenants are typically responsible for all property-related charges, taxes, and fees unless an alternative agreement is reached.
Property Condition upon Expiry: Landlords are entitled to receive the property back in the same condition it was in at the start of the tenancy.

Frequently Asked Questions

Can I terminate my tenancy contract in Dubai early?

In Dubai, tenancy laws do not specifically address the details of ending rental contracts early. If a tenant decides to leave the property before the lease is up, the landlord is entitled to keep any remaining rent and may not issue a refund.

Therefore, to prevent this situation, it is important for the rental agreement to include an exit clause. This clause should clearly state the notice period required for early termination and any penalties that might apply.

Do I have any rights if I don’t register my tenancy contract in Dubai?

In Dubai, it is essential to register your rental agreement and any changes to it with the Real Estate Regulatory Agency (RERA). Your contract becomes legally binding only once it is formalized through the Ejari system. Without this registration, the law does not provide protection or enforce the rights of either landlords or tenants.

Is the landlord allowed to enter the rental property without the tenant present?

No, a landlord cannot enter the property without the tenant’s permission. Once the lease is in effect, the landlord needs the tenant’s consent to access the premises unless the tenancy agreement includes a clause that permits such entry.

Even if the landlord intends to sell the property and conduct viewings, they must obtain the tenant’s consent. Additionally, they are required to provide at least 24 hours notice before any scheduled viewings can take place.

What are the penalties and notice period for early lease termination in Dubai?

The notice period and any penalties for terminating a lease early in Dubai are determined by the specific termination clause in your rental agreement. If there’s no such clause, tenants are generally required to give at least 60 days’ notice before ending the lease. The penalty amount is at the landlord’s discretion.

Summing it up

So, this was all about tenancy contracts in Dubai. it is important to know your rights and responsibilities before entering into a tenancy agreement. Also, hiring a certified real estate agent can help you avoid troubles related to the process. Feel free to contact us if you need support in finding a property or with tenancy contracts in Dubai.