RERA Tenancy Law in Dubai and UAE

The United Arab Emirates (UAE) is thriving in the property business. Dubai has become a global hub as more foreign investments are made in Dubai businesses. Considering the influx of expatriates, Dubai’s rental market is also booming. Under RERA (Real Estate Regulatory Authority), Dubai’s rental market is operated. However, RERA also enforces the tenancy law, ensuring that it protects the interests of both property owners and tenants. The important thing is that all tenancy contracts shall be registered with the EJARI system for legal compliance. Our lawyers in Dubai have expertise in handling rental disputes because they have spent years in dealing with such subjects.

It is governed by Law No. 26 of 2007 and its amendment, Law No. 33 of 2008, the law ensures a well-balanced contractual obligation. Supporting regulations, such as Decree No. 26 of 2013 and Decree No. 43 of 2013, establish dispute resolution and rent increase caps. The main legislations are as follows;

• Law No. 26 of 2007: General tenancy rights.
• Law No. 33 of 2008: Rules for renewal, notice periods, and documentation.
• Decree No. 26 of 2013: Rental Disputes Settlement Centre (RDSC).
• Decree No. 43 of 2013: Controls the annual rent increase.
• Federal Law No. 5 of 1985: Regulates contractual obligations and liabilities.

There are several rules and regulations for the real estate in the UAE. These laws define different aspects of rental properties in the UAE. The tenancy rights and obligations are required documents that have separate laws and legal consequences if failed to follow the rules. Another law in real estate has introduced the Rental Disputes Settlement Centre for ease of the tenants. However, the occupants should not worry about the rental increase after a certain threshold because the increased rent is capped at some point. UAE Civil Code is applied to regulate contractual obligations and liabilities. It is one of the most supportive laws in United Arab Emirates. Let’s discuss the regulatory bodies in UAE:

• Dubai Land Department (DLD)

• Real Estate Regulatory Agency (RERA)

• Rental Dispute Settlement Centre (RDSC)

EJARI is a platform where all tenancy contracts are registered. Any rental property that is not registered with EJARI, will not be considered legal. Therefore, if you are thinking of renting a house in the UAE, make sure that it is registered with EJARI for legal compliance and legal rules. Failure to do so or absence to do so, will lead the person to Dubai courts where legal consequences could be severe.

As an expat, you might be struggling with finding an undisputed rental property. After seeing the registration in the EJARI system, it assures that the property is not disputed and you can rent it. However, the Ejari system aids the legal rights of the landlord and the renter. Moreover, without registering with Ejari, the government utilities and services could be difficult to reach. In case of any rental dispute, the registered property’s case can be taken to the RDSC for dispute resolution. If EJARI systems are confusing for readers then please contact our Emirati Lawyers for further legal help and support.

There are some rules to be applied while renting the property. Security deposit is one of the important documents in the tenancy rules. It is a one-month rent that is refundable whenever the tenant leaves the property. The security deposit confirms the tenant’s intention to rent the property. However, if any severe damages are made to the property by the tenant, the landlord can make deductions from the security deposit. Secondly, the rental payments are either made through direct bank transfers or post-dated cheques in the UAE. However, the payment shall be made timely, or a 30-day notice will be issued. Circumstances leading to unresolved defaults can have legal proceedings.

The lawyers in Dubai can assist landlords in drafting rental agreements with clear terms of payments, security deposits, responsibilities of maintenance, and notice periods. The agreement ensures clear communication with legal compliance of the UAE rental laws.

It all depends on the local rules of Emirate. For example, in Sharjah, the main law about the rental increase is that the landlord cannot increase the rent in the first three years of the rental property. Dubai allows the rent to be increased from 5 to 15%. But the actual rent index can be checked with Dubai Rental Department. They can raise the rent, depending on the following factors:

• Must give a 90-day written notice before the rent can be increased.
• The rent can be hiked if justified by the RERA Rental Index.
• Decree No. 43 of 2013 sets permissible increase percentages, depending on the variance between the existing rent and the market average.

The occupants cannot make any structural changes to the property unless they have taken written permission from the landlord. Sometimes the permissions are to be taken by landlords from land department. Any modifications without paperwork or the consent of the landlord will result in eviction and a financial penalty. Disputes can arise with the physical transformations created on the land. These issues can relate to painting in the property, installation of ceilings or partitions, or subletting the property to another party without obtaining consent from the landlord.

• Dubai law firms are available to assist clients with permissions and updates to the contracts. By having legal experts on your side, the penalties can be avoided.

The landlord can evict the tenants for several reasons. It includes the non-payment of the rent, subletting the property without consent, doing illegal activities on the property, or making unauthorized structural changes. The most valid reason could be if the landlord wants to stay in that property for their personal use.

Some eviction notices can be made with 1 year notice. It is either sent through mail or Notary Public. The lawyers in Dubai can help landlords and tenants with eviction notices and rules. Their cases can be defended at the RDSC.

The Rental Disputes Settlement Centre is able to resolve rental disputes if they are registered with Ejari, and have evidence of contract violations and a payment for filing the case. However, these cases are resolved in one month, depending on the performance of the Dubai law firms that are representing clients.