All You Need To Know As A Landlord In Dubai

It is not easy to be a landlord. In most countries, the tenants seem to have more rights than the owner of the property. This may be the case for Dubai as well. There are some strict rules that the landlord must follow in order to be able to rent his property to others.

These laws go beyond the keep the property in liveable condition at all times requirement. Keep reading to find out about the different laws governing renting a property as a landlord and what rights a landlord does have.

Laws are there to protect both parties in a landlord-tenant situation and they may convince you to rent or not when you buy investment property in Dubai.

New Rental Law In Dubai

There have been many news reports talking about a new rental fee freeze but those reports stop in June 2021. These reports have stated that a new rental law capping the rent increase for 3 years has been discussed and is in the draft stages.

But no final word has been issued on if it has been implemented yet or not. What the law proposes is that all new rental contracts will be affected and the rental fee agreed to remains set for the next three years.

Landlords have been asking for permission to raise their rental prices between 5 and 15% to offset the economic damage that will occur if this new law is approved.

This type of rental fee freeze has happened in the past in Dubai. At those times, landlords increased rents by as much as 20 to 30%. With no final word on its implementation, landlords are moving fast to lock in new tenancy contracts at higher rates.

Landlord In Dubai

This is not an easy position to be in in this city. While there are many horror stories about landlords and developers etc., using scams to cheat people, the landlords, etc., do not have a monopoly on this behaviour.

Many landlords experience one set of tenants who sign the contract then turn around and sublet the property or they simply do not pay their rent. This means that landlords need to vet their potential tenants more thoroughly but that doesn’t always pick up bad tenants and filter them out of the process.

Landlords do have the right to evict tenants who break the contract and one way to get evidence of an illegal sublet, is to visit the property right after you have signed the tenancy contract and the tenants were supposed to move in.

There are strict rules in place that the landlord must follow before they can evict anyone. Article 25 of law No. 26 of 2007 explains those situations where a landlord can evict a tenant. In part this article says a landlord can only evict a tenant if:

  • The tenant fails to pay rent within 3 days of being served a written notice from the landlord
  • The tenant subleases the property without the landlord’s approval
  • The tenant uses the property for any other purpose than it was leased for
  • The property is used for immoral or illegal activities
  • The tenant causes damage or makes unsafe changes to the property
  • The tenant fails to comply with the terms of the tenancy or the law
  • If demolition of the property is required by the government for urban development

There are other rules for when the tenancy ends in the same article 25.

Dubai Landlord Guide

There are some good guides on the internet but all of those may not contain all the information surrounding the rights of both the landlords and the tenants. The best way to get the best guide is to go to RERA and get the information directly from the governing regulatory agency.

One of the more important situations landlords will run into is the early tenant exit. Unfortunately, while RERA has created quite a few tenancy laws, this situation was omitted from their results. There is no RERA law governing an early tenancy exit.

The early exit is governed by the terms set forth in the tenancy contract and it must be abided by exactly. Then if there is no early exit clause, the tenant may have to pay compensation to the landlord. That compensation will be at the landlord’s discretion.

To get to this guide on all RERA tenancy laws just click this link. it is the best guide on this topic on the internet currently outside of RERA.

What You Need To Know As A Landlord

You should be familiar with all of the tenancy laws governing your apartment, house, villa, or commercial property. These laws will protect you as well as guide your rental process. Staying on the side of the law is the best way to avoid problems later on.

Here are some other tips on what you need to know as a landlord:

1. Hire A Property Manager- This will save you more headaches than you can imagine. The property manager handles all the tough duties like- including vetting tenants, collecting rent, handling complaints, and maintenance and repair requests.

2. Understand The Contract- Keep the contract clear and have it spell out all the details stating what maintenance and other duties you as a landlord are responsible for. Make sure to keep all monetary fees clear in the contract as well.

Make sure to include an early exit clause and other important details so there will be no problems when the tenancy ends or the tenant violates the contract.

3. Treat Your Tenants With Respect- That should say it all.

Some Final Words

When you are wanting to rent out your Dubai property, give us a call. Our real estate agency has over 10 years of landlord experience in Dubai and London. With this experience and knowledge of Dubai rental laws, our agents can guide you through the rental process and protect your rights as a landlord.

This is a different culture and you will need expert advice so you and your property are protected at all times.

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