
A Guide to Tenants’ Rights in Dubai
Dubai offers a better quality, providing several opportunities to its inhabitants. People like to acknowledge this part of the world as a magical city. They move here to explore the opportunities that are working in their favor. The new rental law in Dubai gives them a flexible choice to rent a property, rather than purchasing one. However, while doing so, there are various things they should know, including tenant rights in Dubai.
Current Situation and Rental Price Increases
The urban centers have grown significantly in Dubai. As a result, the Dubai tenancy contract is among the most debatable topics. Currently, rental prices seem to be on an upward trend, as a result of a substantial rise in villa rents by 24.8% and apartment rents by 24.1%. Tenants should not look for property without being fully aware of the law regarding tenant rights in Dubai.
Can Landlord Increase Rent in Dubai After 1 Year?
Knowing your rights as a tenant is the basic thing you need to know when you plan to buy property in Dubai. Landlords have no right to increase the rent whenever they desire, as per the rules assigned by the Dubai tenancy contract. However, that does not mean that they cannot increase it even after 1 year. According to the new rental law in Dubai, property owners cannot renew the contracts of tenants until the passing of an entire year. Any decision of the landlord to change rates during the period of the contract is considered against the law in support of Dubai tenant rights. Therefore, for the sake of protecting their rights, the tenant can file a complaint.
If a landlord plans to raise the rent, he needs to inform the tenant in advance. Otherwise, he will be violating the clause of the Dubai tenancy contract. According to the law, a landlord cannot increase rent 90 days before the date of the contract expires. For the sake of clarification, if this time he fails to do so, he will not be entitled to claim the rent revision, when the current contract expires. Rather, he has to wait until the next time the Dubai tenancy contract expiry occurs.
How much Rent a Landlord can increase annually?
Another issue that needs discussion is how much rent a landlord can increase annually, according to the Dubai tenancy contract. Regarding the case of an increase in rent rate, a landlord does not enjoy the freedom, he dreams about. At the same time, if you are looking forward to buying property in Dubai, you should know your rights as a tenant. For clarification regarding rent increases, landlords should work according to local legislation. Here is a breakdown of the percentage, according to this legislation regarding the current rental rate of benchmarking.
0% – if the rental is less than 10% of the average market rental rate;
5% – if the rental is less than 11%–20% of the average market rental rate;
10% – if the rental is less than 21%–30% of the average market rental rate;
15% – if the rental is less than 31%–40% of the average market rental rate;
20% – if the rental is less than 41% and more than the average market rental rate.
Therefore, it seems as if a rental index is very simple and also quite clear. However, the average market rental rate is the question that needs to be addressed. How to calculate it? The answer to the question is that you should not bother about calculating it. This is because the Real Estate Regulatory Agency (RERA) is the local authority that does it for you on your behalf.
RERA Tenancy Laws
As a regulatory authority, RERA works under DLD’s supervision to oversee the implementation of the Dubai tenancy contract. Its responsibility includes maintaining a relationship between tenants and the landlords by regulating it. The Dubai landlord and tenant law includes four core aspects that you need to keep in mind whether you are a tenant or a landlord. These are mentioned below:
- Law No. (26) of 2007 regulates the relationship between landlords and tenants in Dubai.
- Law No. (33) of 2008 amends certain articles of Law No. (26) of 2007 and governs the landlord-tenant relationship in Dubai.
- According to Law No. (26) of 2013, the Rental Disputes Settlement Centre (RDC) is established to handle all types of rental disputes in Dubai.
- Law No. (43) of 2013 specifically governs rent increases in Dubai.
Tenants’ Rights in Dubai
Before searching for a flat, consider new rental laws regarding Dubai tenancy contracts. This is particularly for those who are searching for a flat to rent. It is necessary to know your rights as a tenant, including obligations and rights towards your landlord.
- Contract Termination Before Expiry
Tenants desiring to end their lease early may encounter a two-month rent penalty. Due to individual lease terms, a few contracts may opt for early termination based on individual lease terms. Negotiate with the agents before signing the lease contract.
- Notice for Rent Increase and Eviction
According to Dubai tenant rights, there are evection regulations. It is necessary to note that when the agreed-upon Dubai tenancy contract regarding eviction comes to an end, landlords have the right to evict the tenants. For example, if a landlord wants to end a tenancy agreement, they should provide them with a 12-month written notice. According to Dubai landlord and tenant law, this should be delivered via notary public or mail.
On the other hand, if the landlord wants to increase rent, then the Dubai tenancy contract suggests that they can only adjust these during the renewal period. Also, a 90-day notice period should be provided to ensure tenant rights in Dubai are not undermined.
- Contract Renewal
Contract renewal is among the important tenant rights in Dubai that landlords cannot undermine. Tenants can renew their contract provided they have informed their landlords almost 90 days earlier before their contract expires. If you know your rights as a tenant, then the landlord cannot evict you if they do not have a valid reason. Hence, the tenant can stay in the property as long as they are according to the new rental laws in Dubai.
Conclusion
While moving to Dubai, you should know your rights as a tenant before choosing a place to rent. This is because the issue of notices and rental price hikes are a common issue. To avoid conflicting relationships, both should know about Dubai landlord and tenant laws. This will help both parties before they move forward with the deal. There is a plethora of things we need to address regarding the Dubai tenancy contract in this blog.