Tenancy Contract: The Ins and Outs of Renting in Dubai, UAE

The demand for rental properties in Dubai is really high which is clear from the fact that there are about 3.6 million people currently living in the city and about 80% of these reside in rented apartments or villas.

If you are also looking to rent a residential or commercial property in Dubai, UAE, then you need to familiarize yourself with the ins and outs of renting and the tenancy contracts in the region.

Dubai has strict and specific laws to govern tenancy contracts which ensure all the parties involved are protected financially. In this article, we will show you how tenancy contracts work in Dubai and how you can ensure your contract is transparent and free from legal loopholes so stay with us till the end.

Here is all you need to know about tenancy contracts in Dubai, UAE   

• What is a Tenancy Contract in Dubai, UAE?
• Tenancy Contract Laws in Dubai
• Important Tenancy Contract Clauses You Need to Remember
• How to Download Tenancy Contract in Dubai?
• Basic Information Contained in a Dubai Tenancy Contract
• Required Documents for Tenancy Contracts in Dubai, UAE
• Creating a Tenancy Contract in Dubai: Quick Step-By-Step Guide
• Who Needs to Sign the Contract

What is a Tenancy Contract in Dubai, UAE?

A tenancy contract is a legally binding document between a tenant and a landlord that deals with the rental of a property. This contract allows the tenants to use a certain property for a specific purpose and for a certain amount of time.

This document contains all the lease details and mutually accepted requirements, rights, terms, and conditions of both parties involved.

This contract also outlines the obligations, responsibilities, and expectations of the tenants and landlords which provides them both with clarity and protection.

A well-written tenancy contract under the supervision of an expert property management company can promote a cordial, transparent, and harmonious relationship between the parties involved throughout the tenancy period.

Tenancy Contract Laws in Dubai

The tenancy contract laws in Dubai, UAE are governed by the Dubai Landlord and Tenant Decree No. 26 of 2007 known more commonly as the RERA tenancy contract rules. These laws give a clear legal framework for tenancy agreements.

Laws No. 26 of 2007 and the amendment law No. 33 deal mainly with the responsibilities and obligations of both parties involved.

Matters of property rent increase fall under the Decree No. 43 of 2013. Decree No. 26 of 2013 was followed by the establishment of RSDC or rental dispute settlement centers which allow the resolution of rental conflicts via courts or arbitration.

The property registration and the monitoring of the rental contracts are ensured via the Ejari Registration system.  This system is designed to facilitate landlords and tenants in formalizing their rental contracts in government-approved formats.

The purpose of these laws is to regulate things like security deposits, rent increase limitations, eviction procedures, property maintenance, and dispute resolution fairly and transparently.

Important Tenancy Contract Clauses You Need to Remember

As a landlord or a tenant, you can agree upon any number of clauses that you see fit. However, certain elements are a part and parcel of almost every tenancy contract in Dubai, UAE.

In any tenancy contract, parties can attach addendums that enumerate all the terms of the agreement in an elaborate fashion.

These addendums can list things like the party responsible for the maintenance costs and services, required instances for an NOC from the landlord, and whether the tenants are allowed to perform maintenance and to what extent.

Another important clause deals with the breaking of the tenancy contract. The contract is canceled if both parties decide to do so. The contract is renewed after 1 year. The landlord needs to provide a 90-day notice to the tenant before the expiry date if they wish to change the existing contract.

Upon the death of the tenant or the landlord, the contract doesn’t terminate. Instead, it then falls upon the deceased heir to carry it out. If the heir wants to terminate the contract, they will have to inform the other party and wait for 30 days.

If the property is given to a new party before the end of the tenancy term, the tenant has the right to occupy it for the agreed-upon time frame. This particular instance doesn’t warrant a change in the contract however, it is still better to update the details with Ejari to avoid potential disputes.    

How to Download Tenancy Contract in Dubai?

You can download the standard rental contract from the website of the Dubai Land Department. You can also download the contract from the Dubai REST application.

This editable document is available both in Arabic and English. Parties involved can edit this document and add more clauses and special conditions based on their needs.

The following information is included in the standard tenancy contract

• Ejari registration
• Governing Laws
• Contract terms and conditions
• Obligations of the tenants and landlords 

Basic Information Contained in a Dubai Tenancy Contract

The format of your tenancy contract must be in accordance with the Ejari system. Here are a few things that you need to add to the contract

• Personal details i.e., names, addresses, and contact information of both parties
• Property address
• Agreed upon rent and the payment schedule
• The tenancy duration
• Usage of the property
• Plot number and DEWA premise number
• Signing date
• Security deposit amount
• Method of Payment

Landlords and tenants can also add a supplement that contains additional particular terms and conditions that both parties mutually agree upon.      

Required Documents for Tenancy Contracts in Dubai, UAE

You need the following documents to prepare a tenancy contract in Dubai, UAE

• Emirates ID
• Copy of passport and valid residency visa
• A security deposit cheque
• Title deed or proof of ownership
• Original DEWA bill
• Ejari registration form    

Creating a Tenancy Contract in Dubai: Quick Step-By-Step Guide

Here are the main steps you need to follow when making a tenancy contract in Dubai, UAE

• Understand legal aspects and requirements and stay updated on the current tenancy regulations, laws, and guidelines to ensure compliance.
• You can also look for a legal representative at the RSDC center if you are new to the contract preparation. 
• Collect the required documents (consider the previous section for details).
• Specify the contract terms and conditions concerning the rental amount, payment method, payment frequency, tenancy duration, security deposit amount, the conditions for its return, maintenance responsibilities, and other related rules and restrictions.
• Use the standard template given by the Dubai Land Department to create the contract.
• After that register your contract on Ejari using the online Ejari portal or by visiting authorized typing centers.
• Receive the Ejari certification and keep it as proof of registration for future reference.
• Both the tenants and the landlords should keep a copy of the Ejari certificate for record.         

Contract Signatories

After drafting the contract, both parties need to sign it in front of a witness to make the agreement legally binding and valid. The following people are considered the official signatories for rent contracts in Dubai according to the Dubai Land Department:

• The Landlord
• The Tenant
• The legal representative of the landlord with the power of attorney
• Licensed property management companies    

Conclusion

The tenancy laws in Dubai take care of most of the ambiguity that surrounds rental contracts and the rights and responsibilities of the tenants and landlords.

If you take the time to deeply understand the basic tenancy contract laws and their legal complications, you can easily create a legally binding contract and understand one that has been formulated by the other party.

Considering there is a lot of intricate documentation involved and you need to acquire specialized knowledge of the rental laws and contracts in Dubai to create a tenancy contract, it is a good idea to seek professional help. These experts can guide you through this complex process and help avoid major mistakes.

Visit My Property Manager today to get professional help in the preparation of your tenancy contract in Dubai, UAE.