×

Contact Detail

Tel: +9714 452 0077

Email: info@sevencentury.com

Company Address

Office No. 1509, Al Manara Tower
Business Bay, Dubai UAE
P.O.Box:123749 Dubai - UAE

Branch Office

R-01 Tuscan Shop,
Jumeirah Village Circle
Dubai - UAE

Need help?

Book an appointment with one of our property experts.



UAE Leasing Rights Explained for Landlords and Tenants


 By Veronika Goncharova   Thu  25-08-2022



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 Real Estate Regulatory Agency (RERA) has created an online rent increase calculator with which landlords and tenants can check whether the property is eligible for rental increase. A Rental Valuation report can be scheduled in the Dubai Rest App or the DLD site. The fee for the valuation depends on unit size and ranges from AED 2,000 to AED10,000 with AED 20 service charge.
In the event of a dispute or conflict between landlord and tenant, regarding the rental increase. Both parties have the right to submit a dispute to the Rental Dispute Commitee (RDC), The RDC shall determine the appropriate rent increase, in consideration of the RERA rental index.

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 Landlord can pursue eviction upon the expiry of the lease in the following cases:
  • 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.
These four grounds for eviction apply only when there is a dated judicial eviction notice. This notice is given with a 12 months' allowance. So keep in mind this timeline and make arrangements through the Notary Public or through the mail. In case of eviction due to the landlord's wishes to sell the property, keep in mind, that the owner cannot begin selling the property prior to the expiration of the 12-month notice. If the owner engages the selling of the property prior to this RDC will serve a new 12-month eviction notice. The 12-month notice means the property is in the custody of the tenant




Subscribe For Our Newsletter

@


Subscribe To Our Newsletter