In this week's article, we will explore the key pieces of legislation surrounding tenancy in
the UAE. The tenancy law, specifically Law No.33, article 25, paragraph 1 which covers
rent increase and eviction rights. Being familiar with this legislation as a landlord or
tenant will make it easier to navigate contracts and mitigate conflict.
The landlord can increase the rent amount on the tenant in the following cases:
According to the Dubai Land Department (DLD), the landlord must provide a notice of rent increase notice 90 days prior to the end of the lease agreement. Article No.1 of Decree-Law No.43 of 2013 states when renewing the lease, the maximum percentage for rent increase in Dubai is as follows;
- No rent increase in properties if rent is up to 10% lower than the average of similar units.
- 5% rent increaset, if rent is 11%-20% lower than the average of similar units.
- 10% rent increase, if rent is 21%- 30% lower than the average of similar units.
- 15% rent increase, if rent is 31%- 40% lower than the average of similar units.
- 20% rent increase, if rent is more than 40% lower than the average of similar
units
The landlord can pursue eviction before to the end of the lease in the following cases
- The Tenant doesn't pay rent after 30 days of notice given.
- The Tenant sub leases the property or a part of it without obtaining the landlords
permission. Eviction will apply to tenants and sub-tenant. Sub-tenant will have a
right to claim compensation from the Tenant.
- The Tenant used the property to conduct illegal activities.
- The commericial tenant leaves the property unoccupied for 30 consecutive days
or 90 non-consecutive days in the same calendar year, unless agreed prior,
which is grounds for eviction.
- The Tenant makes alterations to the property that makes it unsafe, the property is
damaged due to lack of due diligence, or the tenant has allowed others to cause
damage. Any such gross negligence is grounds for eviction.
- The Tenant uses the property for a purpose other than that of thier lease (i.e;
residential unit used for commercial endeavors).
- The Government requires the property for demolition or reconstruction as per
urban development requirements.
- The owner wishes to demolish the property for complete reconstruction or to add additional elements. In this case, said interventions would interrupt the tenant from residing in the property. Necessary permits for construction need to be obtained.
- The property is in an unacceptable condition and requires restoration or thorough
maintenance. Said maintenance can't be carried out with the occupant. In this
case, a technical report needs to be issued and attested by the Dubai
Municipality.
- The owner wants to use the property for personal use or for use by his
first-degree family, the owner needs to prove he does not own another property
for such use.
- The owner wishes to sell the property.