For many urban dwellers, renting a villa or apartment to live in is the easiest option. Whenever a new resident arrives in the UAE, one of the first things they do is look for a place to settle, which for many people equals renting an apartment. But hardly anyone knows about Dubai’s tenancy laws and regulations, here we have compiled all the significant information about its tenancy laws.
Here are nine things to take into consideration if you’re looking to rent the house in Dubai:
- What if your contract is about to expire?
If this is the case, your landlord is mandated by law to notify you of any rent increases 90 days in advance. Articles 6 and 14 of the ‘Dubai Law No. 26 of 2007 Regulating Relations between the Landlord and Tenant in the Emirate of Dubai,’ often known as the Dubai Rent Law, state as much.
- How much increment is allowed on the monthly rent?
Even if your landlord decides to raise the rent, he or she cannot do so beyond the Dubai Land Department’s given threshold (DLD). The rate of increment is calculated by how less your rent is in comparison to the area’s average house rent rate for your unit. This is the maximum raise a landlord can make, according to DLD.
- If a unit’s monthly rent is between 21 and 30% less than that of the average rental value of similar units, the rent can be slightly increased to 10% at the time of reinstatement of the rent agreement.
- If the actual property unit’s rent is 31 to 40% less than the market rental value of comparable units, the landlord may raise the rent by a maximum of 15% of the real property unit’s rent.
- If the property unit’s rate is less than the normal rental value of equivalent units by more than 40%, the landowner may raise the rate by no more than 20% of the actual property unit’s rent.
The DLD online Rental Index is an effective tool for renters to check whether the landowner’s hike in the rent of their flat or villa is in these limits.
- Can a landlord turn off tenant’s electricity or water supply incase of failure of rent payments?
Inability to pay your rent might result in serious penalties, including eviction. It is, however, unlawful for your owner to turn off the water and electricity to your apartment. This is overtly mentioned in Dubai rent legislation, and if the owner violates the rules, the renter has the right to submit a “petition order” with the Rental Dispute Centre, requesting that the owner must restore the utility supply.
A judge will make a ruling within 24 hours after receiving a petition order. Read our instructions here to learn how to file such a petition order.
- What are rules for eviction notices from landlords to tenants?
For these two forms of evictions – eviction owing to restoration or comprehensive maintenance and eviction attributable to destruction – a landlord is lawfully required to give a 12-month written notification.
- What happens if tenant sublets without permission of landlord?
According to the Dubai Rent Law, a landlord has the legal right to remove a tenant in certain scenarios. When a renter defaults rent within 30 days of receiving a notice, when a renter exploits the property for any illicit purposes or for a reason that violates civil morality or ethics, or when a renter leases the premises without the homeowner’s permission, these are among the reasons for eviction.
- How can the tenant know the area’s average rental prices for more info ?
If you are relocating into a condo or villa and just want to know if the offer you got was fair, you can use a new portal called DXBinteract.com, which offers information on real estate transactions again from Dubai Land Department, to compare prior rents levied for the same property.
- How tenancy agreement differs from Ejari agreement?
The tenancy contract is just your written contract with your owner, whereas Ejari is the process of filing this contract with the Dubai Land Department. To register with Ejari, you’ll need the necessary information: the name of the rental agency or the homeowner’s credentials, such as a copies of his or her passport, and the contract’s conditions. The renter is also responsible for the registration costs.
- How can tenant and landlord resolve their disputes?
You can lodge an official case with the Rental Dispute Settlement Centre (RDSC), which regulates all rent-related cases in the Emirate, if there is a conflict between the renter and the owner. The matter is resolved by RDSC by an equitable solution for both parties, which takes 15 days.