What is Subletting in Dubai? A Detailed Guide for Tenants

If you are a tenant in Dubai who is looking to make some extra money or reduce their rent amount, you can consider subletting your property. Subletting or subleasing allows you as a tenant to rent out your property to a third party and in most cases, it is a good way to ensure you can pay your rent on time or fulfill your rental contract.

This blog details everything you need to know about subletting in Dubai as a tenant. Here we will cover the legal aspects of subletting and the right approach when finding the right tenants to make sure you can sublease your property in the safest way possible so keep on reading till the end.

What is Subletting?

Laws Governing Subletting in Dubai

Legal Requirements for Subletting in Dubai

• Original Lease Agreement
• Permission from the Landlord
• Sublease Term
• Rent Amount and Due Dates
• Additional Terms 
• Ejari Registration
• Security Deposit

Subletting a Property in Dubai: Step-By-Step Process

1. 1. Confirm Permission

1. 1. Advertise the Real Estate
   2. Screen Subletters
   3. Draft a Sublease Contract
   4. Register Sublease
   5. Inspections and Handover
   6. Payment Collection
   7. Informing the Landlord  

 What is Subletting?

Subletting is when a tenant subleases a property to a subtenant during the duration of the contract that he has with the original owner. In this process, an existing tenant rents the entire or part of the rental property to a third party after obtaining permission from the original owner and completing the required legal framework.

A tenant may have to sublet his property for any one or more of the following reasons:

• • The tenant may not be in a position to pay the rent and by subletting they can split the total amount.

• • Another case is when after signing the contract, the tenant has to move out before the end date for some reason. By subletting tenants can make sure the contract is honored and the rent is taken care of by the sublessee.

The following are the two main types of subletting in Dubai:

• • A leasing company can acquire the master lease of a real estate and then rent out parts of it to different tenants. In this case, each tenant in that real estate has sublet the property and is in sublease agreement with that agency.

• • In the second case, an existing tenant rents out the property to a third party within the duration of the contract. This type of subletting is the main focus of this article.   

Laws Governing Subleasing in Dubai

Subletting is legal in Dubai but you have to take certain considerations into account. Article 24 of Law No. 26 of 2007 outlines the terms and conditions for subletting in Dubai.

This law states that every tenant must have written permission from the landlord before subletting the property unless otherwise specified in the original tenancy agreement.

The next article i.e., 25 states the consequences of subletting without obtaining permission. This section states that a landlord is legally entitled to terminate the lease agreement before the due date and evict the tenant if the latter tries to sublet the property without their permission.

Legal Requirements for Subletting in Dubai

As a tenant, you need to make sure you fulfill all the legal requirements and adhere to the framework established by the relevant authorities like the Dubai Land Department and RERA.

Following are a few things you need to consider in this regard:

• Original Lease Agreement

First of all, as a tenant, you need to carefully read the original lease agreement from start to end. This can help you figure out if you can sublet the property or not or under what circumstances and conditions you are allowed to do so.

• Permission from the Landlord

Every tenant must obtain a permit or NOC from the original owner as proof that they can sublet the property. This can help you avoid legal and financial issues down the line.

• Sublease Term

You also need to specify sublease terms like the start and end date, lease amount, and other conditions to ensure they do not violate or exceed the terms specified in the original tenancy agreement. 

• Rent Amount and Due Dates

Here you need to outline the rent amount and specify the due date along with the penalties and charges for late fees.

• Additional Terms

Here the tenant and subtenant agree on additional things like subletting restrictions, guest policies, pet regulations, etc. 

• Ejari Registration

As every lease agreement is executed via the Ejari system in Dubai, tenants have to register their contracts from here. By executing the sublease through Ejari and registering it with the RERA (Real Estate Regulatory Agency), you can ensure that the rights of the owner, tenant, and sublessee are protected and respected by the relevant authorities.

• Security Deposit

You need to state the amount of the security deposit and the conditions under which it is refundable. Generally, the landlord collects the security deposit from a party for the subletting.

This deposit is created as a contingency fund for addressing issues like untimely rent payments or property damage.

Subletting a Property in Dubai: Step-By-Step Process

After completing the legal aspects of the process, you can follow the steps given below to better handle the subletting in Dubai:

1. 1. Confirm Permission

Before starting your hunt for the sublessee, you need to make sure you have the permission of the landlord in the form of an NOC.

2. 2. Advertise the Real Estate

The next step is to advertise the property on different online and offline platforms. You can use social media ads or advertise through word-of-mouth. Just make sure to mention the rent amount, duration, and terms for the sublease in the ads to save time.

3. 3. Screen Subletters

Screen the potential sublessees by looking at their educational background, work experience, previous leases, and references. This can help you find an ideal subtenant that will cause you no trouble down the line.

4. 4. Draft a Sublease Contract

Draft a tenancy contract containing the terms of the sublease like duration, down payment, rent amount, etc.

5. 5. Register Sublease

You also need to know how to register on Ejari in Dubai as a tenant. After preparing the contract, make sure to register on Ejari. You can do it online by filling out the form and attaching the required documents.

6. 6. Inspections and Handover

The tenant needs to have a detailed report of the inspection of the property and the subtenant needs to look at it to make sure everything is in order. At this point, the tenant can hand over the property to the sublessee.

7. 7. Payment Collection

At this point, the tenant can collect the rent and security deposit from the subtenant. Make sure to use secure payment options and keep receipts of all such transactions with you.

8. 8. Informing the Landlord

And finally, the landlord can be informed of the lease agreement. After that, you also need to keep them in the loop so that issues like property damage or system malfunction are resolved on time and the landlord can ensure the subtenants follow the sublease terms during their stay.  

Conclusion

Subletting in Dubai can be a really wise financial choice as a tenant. It can not only help you avoid hefty rents but it can also help you honor your renting or lease agreement even when you are not doing so well in terms of money or when you have to move someplace else.

By getting the landlord’s approval and completing the required legal documents, you can ensure the subletting contract you come up with is foolproof and error-free. Visit My Property Manager today for the best real estate renting and management services in Dubai, UAE.

Visit My Property Manager today for the best real estate renting and management services in Dubai, UAE.