Tasheel Legal Consultancy LLC
Tasheel Legal Consultancy LLC

UAE Tenancy Rights

In the UAE, according to the Federal Law No. 15 of 1980 on housing and related sectors, there are 4 types of tenancy agreements:

  • The Tenancy Agreement contract is a binding agreement between a tenant and a landlord which includes rights & obligations for both parties.
  • The Rental Agreement is a contract in which both tenant and landlord are bound by the agreement.
  • The Lease Contract is a tenancy contract that is binding on both parties, but it is for an unlimited period of time.
  • The Courtesy Tenancy Contract only binds the landlord to allow the house or apartment be used by another person. It is not binding on the tenant.
KEY POINTS TO NOTE:
  • A tenancy contract can be for a fixed period or unlimited. The tenancy agreement must state whether it is fixed-term or open ended, otherwise Dubai First will presume it to be unlimited under Federal Law No. 12 of 1992 as per their Tenancy Contracts Regulations.
  • UAE Federal Law No. 8 of 1980 on commercial companies stipulates that if a company owns 2 or more units in the same building, they must enter into tenancy contracts with their tenants. In this case, each tenant must have a separate agreement with the landlord and the property owner. This will be legally binding on both parties.
  • Where a tenancy contract is silent on the term of the tenancy, Dubai First will apply Standard Tenancy Agreement clauses put forward by the Ministry of Economy.
  • Where there is no written tenancy agreement, Dubai First will consider it to be a “Courtesy Tenancy Contract” which offers only the landlord protection from having an unlicensed person staying on the property.
  • The landlord and tenant can choose their own tenancy agreement as long as it does not contradict Dubai Law or Federal Law No. 8 of 1980 on commercial companies. A contract that includes clauses that contradict Dubai law or Federal Laws will be considered invalid, regardless of all parties have signed the contract.
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  • The tenancy agreement must include the following:

–   Tenancy Period and commencement date;

–   Rental Amount, Payment Method and Frequency;

–   Any Conditions to Renew/Terminate the Tenancy Agreement;

–    Responsibilities of both parties (landlord and tenant); and

–    Rights of both parties (landlord and tenant).

  • A tenancy agreement will be considered invalid if it contradicts with the UAE Federal Law No. 8 of 1980 on commercial companies or Dubai Law No. 3 of 2008 on tenancy, leases and the renting out property. Both parties are bound by the rules stipulated in these laws so it is best for landlords and tenants to know exactly what these laws entail.
  • Generally, a tenancy agreement will be considered invalid if it includes clauses that:

–    Offers the tenant services or facilities for an extra fee which are not provided by the landlord;

–    Requires the tenant to pay rent in advance beyond 12 months; or

–    Requires the tenant to pay more than 2 months’ rent as a deposit.

  • The tenancy agreement must include details of all parties (Name/Surname, Nationality, Passport Number, Address). If any party is a company in which the director has not signed the contract then it cannot be considered legally binding.
  • A tenancy agreement cannot include any clauses which stipulate that the tenant must pay for damages caused by factors beyond their control (ex: weather, earthquake, etc.) or require them to ensure the property against damage or liability if the landlord has insurance.
  • The lease contract will be considered valid provided it meets the requirements, such as:–    The tenancy period must not exceed 3 years;–    The rent amount per month is Dh12,000 or less; and–    Tenant pays one months’ notice before vacating the property.
KEY LEGISLATIONS:
  • Federal Law No. 8 of 1980 on commercial companies [Arabic] [English]
  • UAE Federal Law No. 12 of 1992 [Arabic] [English]
  • Dubai Law No. 3 of 2008 on tenancy, leases, and renting out property [English]
  • Dubai First Tenants Deposit Protection Policy 2011 [Arabic] [English]
  • Federal Law No. 9 of 2013 with respect to the Rights and Obligations of the parties of Commercial Agreements [Arabic] [English]
  • UAE Civil Code Article 730 on Conditions in Contracts [Arabic] [English]
TENANT RIGHTS:
  • Tenants have the right to security of tenure. This means that, unless otherwise agreed in the tenancy contract, the tenant cannot be evicted before their tenancy expires except by a court order or if they violate one of the items listed under Sec. 92 of Dubai Law No. 3 of 2008 on tenancy, leases, and renting out property [Arabic] [English].
  • Tenants have the right to renew their tenancy contract unless both parties agree for it not to be renewed or one party provides a written notice of 12 months at least before expiry.
  • The tenant has the right to terminate the tenancy during the first two years of any new tenancy agreement without paying any penalty fees. If the tenancy period exceeds 2 years, then the tenant must provide notice to their landlord and pay a months’ rent penalty fee before vacating the property unless otherwise stipulated in the tenancy contract.
  • The tenant has the right to lodge a complaint against their landlords if they do not receive any services or facilities stipulated in the tenancy contract within 3 months of these items being due. This rule also applies to damages caused by factors beyond the tenant’s control (ex: weather, earthquake, etc.).
  • The tenant has the right to lodge a complaint against their landlords for not providing sufficient services if they do not receive basic facilities stipulated in Dubai Municipality Public Health requirements [Arabic] [English].
LANDLORD RIGHTS:
  • The landlord has the right to evict a tenant from their property if they violate any of the items listed under Sec. 92 of Dubai Law No. 3 of 2008 on tenancy, leases, and renting out property [Arabic] [English].
  • The landlord has the right to terminate tenancy contracts before their expiry for any reason provided, they are willing to pay two months’ rent penalty fees or give a notice of 6 months. If the tenant fails to leave the property by the due date, then they must pay an additional one month’s rent penalty fee.
  • The landlord has the right to terminate tenancy contracts before their expiry in the event that the tenant’s tenancy is overdue for more than 60 days.
  • The landlord has the right to request a copy of the contract signed between the tenant and their previous landlord in order to verify if they are trustworthy customers. Such requests must be made within 15 days of the new tenancy agreement.
  • The landlord has the right to request a security deposit from the tenant before renting out their property. This amount must not exceed 2 months’ rent and must be kept in an account separate from the landlord’s personal account. In case of damage to property due to tenants, they will have to repay the full amount of the security deposit to the landlord.
  • The landlord has the right to terminate tenancy contracts before their expiry due to tenants failing to pay 2 months’ rent penalty fee in case, they fail to vacate the property by the due date [Arabic] [English].
  • The landlord can choose not to renew tenancy contracts for any reason provided they give a notice of 12 months at least before expiry.
 
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