The Dubai government has passed legislation to protect the interests of people, investors, and real estate firms in order to control the rental market.
Since more than two years ago, rents in Dubai have been rising as the emirate's population has risen to 3.616 million.
The Dubai government has passed legislation to protect the interests of people, investors, and real estate firms in order to control the rental market. For instance, the relationship between a landlord and tenant is regulated by Decree No. 43 of 2013 on Determining Rent Increases for Property in Dubai. In line with an index chosen by the Real Estate Regulatory Agency of the Emirate of Dubai, the law also establishes the average rent.
The Rental Dispute Settlement Centre (RDC) was established to implement rental laws, adjudicate rental disputes to achieve justice, streamline processes, and expedite the release of judgments to achieve social stability for leased-out families and economic stability for all investors, including the real estate rental market.
Either the renter or the landlord must register the lease with the Real Estate Regulatory Authority (Rera), according to attorney Mohammad Abdul Rahman of Galadari Advocates and Legal Consultants. The agreement will automatically renew for another year with the same terms if the lease expires and the tenant stays in the rented space without the landlord objecting.
Abdul Rahman lists a few legal justifications for why a landlord in Dubai might ask a tenant to leave a rental unit before the end of the predetermined lease term:
- Failure to pay the rent or any portion of it within 30 days of being notified, unless the parties mutually agree to something different
- Subletting the property without the landlord's approval
- The tenant utilizes the property improperly or in a way that is against morality and public order.
- Making alterations to the property that compromise its security or result in damage
- There is an immediate risk of the building collapsing.
- The appropriate authorities demolish the property for urban development purposes.
In some circumstances, the landlord may demand that the tenant quit the property 12 months before the date of vacate, provided that the tenant is told in writing by a notary or registered mail and given the following reasons:
- The tenant's return to the property is the owner's top goal before the property is torn down and rebuilt.
- Property improvements that cannot be made while the tenant is residing there.
- The owner's intent to use the property himself or for one of his immediate family members.
It is important to note that the law has made it clear that the landlord cannot cut off the services to the property because doing so would make it difficult for the tenant to use the property.
The most important obligations of the tenant mentioned under the law are:
- To pay the rent.
- To maintain the property.
- It is impermissible to make changes or maintenance in the property without the permission of the landlord.
- The tenant must, at the end of the lease, hand over the property in the condition in which it was received.
- The tenant may not assign or sublease the property to a third party without the written consent of the lessor.
News Source: Khaleej Times