Before signing a tenancy contract, understanding your rights and responsibilities is crucial to ensuring a smooth rental experience. Whether you’re a first-time tenant or renewing your lease in Dubai, these essential factors will help you navigate the process effectively:
Top Things Every Tenant Should Know Before Signing a Tenancy Contract
1. Rent Payment and Terms
One of the first things to understand is how rent payments work in Dubai. Typically, rent is paid via post-dated cheques as outlined in the tenancy contract. Depending on your agreement, you might pay in one, two, four, or more installments over the lease period. Make sure the payment schedule aligns with your financial situation, and always keep copies of cheques and receipts for your records.
2. Notice Period for Renewal or Termination
In Dubai, both the tenant and the landlord are legally required to give a 90-day notice if they do not wish to renew the tenancy or if they want to make changes to the contract terms, such as increasing rent. If neither party gives notice, the contract will automatically renew under the same terms and conditions as the previous year. Be sure to send any notice in writing or electronically, as verbal agreements are not legally binding.
3. Rent Increases and RERA Guidelines
Rent increases in Dubai are regulated by the Real Estate Regulatory Authority (RERA). The landlord can only increase the rent if it complies with the RERA rental index for your area. To check if your landlord’s proposed increase is legal, use the RERA rental calculator. Additionally, any proposed rent increase must be communicated to the tenant at least 90 days before the contract renewal. If the landlord fails to provide this notice, they cannot raise the rent.
4. Registering Your Tenancy Contract with RERA
Every tenancy contract must be registered with RERA through the Ejari system. Registering your contract ensures the tenancy is legally recognized and prevents the landlord from double-renting the property. Moreover, registration is mandatory for resolving any disputes in the Dubai Rental Disputes Settlement Centre (RDSC). Without an Ejari-registered contract, your case will not be heard in the event of a legal dispute.
5. Eviction Notices and Landlord’s Right to Use the Property
Landlords in Dubai can evict tenants under specific circumstances, such as if they plan to sell the property or use it for personal reasons. In such cases, the landlord is required to give the tenant a 12-month notice in writing, sent via registered mail or through a notary public. This notice ensures that tenants have ample time to make alternative living arrangements. The 12-month period is non-negotiable and must be respected.
6. Subletting and Assigning the Property
According to Dubai’s rental laws, a tenant cannot sublet the property or assign it to a third party without the written consent of the landlord. If a tenant sublets without permission, both the tenant and sub-tenant risk eviction. Additionally, if the tenant fails to pay rent after receiving a 30-day notice from the landlord, the sub-tenant may also be evicted. Tenants who sublet unlawfully can face legal consequences, and sub-tenants can seek compensation through the UAE’s civil courts.
7. Dispute Resolution and Filing Complaints
If you disagree with your landlord over rent increases or other terms, you have the right to file a complaint with the Dubai Rental Disputes Settlement Centre (RDSC). However, this comes with a fee of 3.5% of the annual rent (minimum AED 500, maximum AED 20,000), which is non-refundable. The RDSC will review the case and mediate between the tenant and landlord to reach a fair resolution. Ensure all your documents, including your Ejari registration and rent receipts, are in order before filing a complaint.
8. Common Area Access and Service Charges
If you live in a building with shared amenities (such as a gym or pool), and the landlord has not paid the building’s service charges, you may lose access to these facilities. In such cases, the first step is to contact your landlord and request immediate payment of the service fees. If the landlord refuses or delays, tenants have the option to report the issue to the Dubai Rental Disputes Settlement Centre, which can mediate and, if necessary, impose penalties on the landlord.
9. Securing a Rental Property
Dubai’s rental market moves quickly, and desirable properties can be rented out within hours. To secure a property, it’s common practice to pay a deposit and ensure the property is taken off the market. To avoid losing the property, sign the tenancy contract as soon as possible after paying the deposit. Once the deposit is made, the property should no longer be marketed to others, offering you peace of mind that the deal is secure.
10. Utilities Management (DEWA)
As a tenant, you are responsible for paying utility bills, such as electricity and water, through Dubai Electricity & Water Authority (DEWA). The DEWA account is typically opened in the tenant’s name and does not need to be renewed annually. However, when vacating the property, it’s essential to settle all outstanding bills and provide a copy of the final DEWA bill to the landlord or property manager to confirm that there are no outstanding payments.
Conclusion
Before signing any tenancy contract in Dubai, ensure that you thoroughly understand the terms and regulations. This includes payment schedules, notice periods, legal restrictions on rent increases, and rules on eviction. By being well-informed and ensuring that your tenancy is registered with Ejari, you can protect your rights as a tenant and enjoy a hassle-free rental experience in Dubai.