Renting in Dubai: 8 Rules You Need to Know

As a tenant, make sure you know all the rules related to renting property in the United Arab Emirates. Renting a property, whether a villa or an apartment, is the option most often chosen by expatriate residents who come to settle in the peninsula, in the United Arab Emirates. The primary concern for a new expatriate in Dubai is housing. For many, renting property in Dubai is expatriates’ preferred option. But how many of you actually know the rules currently in force regarding renting in Dubai? If you decide to pack your bags and rent an apartment or house in Dubai, here are the nine points you absolutely need to know:

1. Will my rent increase at the end of my lease? Your landlord must notify you 90 days in advance

If your lease expires and your landlord has not sent you any notification, your landlord is legally required to inform you 90 days in advance of any change to your contract. In the event of a rent increase, if you have not received any written or electronic communication within the 90 days preceding the expiration of your lease, your contract will be renewed under the same conditions. This point is clearly stipulated in Articles 6 and 14 of the "Dubai Law No. 26 of 2007 Regulating Relations between the landlord and tenant in the Emirate of Dubai" or "Dubai Rent Law".

2. Your rent increase cannot exceed a certain limit

Note that your landlord has the right to increase your home’s annual rent. However, they cannot increase it beyond a limit set by the Dubai Land Department (DLD). This increase rate is determined by comparison with the average rent of an apartment similar to yours in the neighborhood where you live. According to the DLD, this is how much a landlord may increase the rent on their properties:

• If the current rent of a property is 21 to 30% lower than the average rental value of similar properties, the rent may be increased by a maximum of 10% upon renewal.
• If the rent of the property unit is 31 to 40 percent lower than the average rental value of similar units, the landlord may increase the rent by a maximum of 15 percent of the property unit’s rent;
• If the rent of the property unit is more than 40% lower than the average rental value of similar units, the landlord may increase the rent by a maximum of 20% of the property unit’s rent.

You can check for yourself whether your rent increase is justified. To do so, you can use the DLD’s online rental index. This tool was designed to give tenants an idea of a possible rent increase by their landlord.

3. Your landlord cannot cut off your water and electricity in the event of unpaid rent

Failing to pay your rent could have serious consequences, potentially including eviction from your home. However, note that the law strictly prohibits your landlord from taking steps to deprive you of water or electricity. This point is clearly stipulated in the law governing rents in Dubai. If your landlord violates the law, the tenant may legally file a "petition order" with the Rental Dispute Center to request that the landlord restore the water and electricity. Once the application has been filed, a judge will issue a decision within 24 hours.

4. The eviction notice must be sent 12 months in advance

There are only two cases in which the landlord is legally required to issue an eviction notice at least 12 months in advance. The landlord may evict you for two major reasons:

• Eviction due to renovation or complete maintenance of the property in question
• Eviction due to demolition of the property

5. Do not sublet your home without authorization

There are several cases in which the landlord is legally authorized to evict a tenant from their home, in accordance with the law:

• This includes cases where the tenant fails to pay the rent within 30 days from the date on which a notice was sent to them,
• It may also include cases where the tenant uses the property for illegal purposes or purposes contrary to public order or morality,
• and cases where the tenant sublets the property without the landlord’s prior consent.

6. Want to change neighborhoods? Find the average rent in your future neighborhood

If you want a change of scenery and neighborhood, or if you want to move from an apartment to a villa, etc., it is entirely reasonable to find out about rental prices in the area. With the new DXBinteract.com platform, it is now possible to refer to real estate transaction data from the Dubai Land Department.

7. Your lease agreement is different from your Ejari

Most people in Dubai confuse the lease agreement with Ejari. Although the two may be used as synonyms, the lease agreement is simply the agreement signed with your landlord, while Ejari is the process of registering this agreement with the Dubai Land Department. The tenant registers the Ejari at one of the Tasheel centers designated for this purpose. You will need to bring your identity documents, as well as copies of the landlord’s documents, namely: passport, lease agreement, etc. Registering an Ejari costs AED220 and is the tenant’s responsibility.

8. A dispute with your landlord? File an official complaint with the Rental Dispute Settlement Centre

In the event of a dispute with your landlord, you can file a complaint with the Rental Dispute Settlement Centre (RDSC), which oversees all legal proceedings related to rental disputes in Dubai. For each case, the RDSC first attempts to resolve the issue amicably between the two parties, and the procedure generally takes 15 days. Our firm specializes in company formation, but we also offer a relocation package to help you settle in the Emirates. This package includes assistance with finding a property to rent or buy. Contact us for more information at support@merritt.group .