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The Relationship between Landlords and Tenants in Dubai

Alaa Galal

Senior Associate

Publish : 17 Aug 2022

There is a specific regulatory framework regulating the relationship between landlords and tenants; people are still facing many disputes that arise because of tenancy relationship. 

Authentication of Tenancy Contract through issuance of Ejari shall limit and ease the way of solving those disputes in accordance with Law no. 26 of 2007, amended by law no. 33 of 2008 regulating the relationship between tenants and landlords in the Emirate of Dubai. 

WHAT IS EJARI?

Authentication of all tenancy contracts in Dubai is an obligation and a must as per UAE laws and regulations.
This system safeguards the parties as its approach is the authentication of the contracts to be enforceable and regulated as per Dubai Government.

Whereas DLD has issued the law enforcing the registration of Tenancy Contracts through issuance of Ejari. This has given an official and regulated framework for Tenancy contract upon the issuance of Ejari. The following lines will further explain this system.

WHAT IS THE TENANT ELIGIBLE FOR WITH EJARI?

Upon authentication of the Tenancy Contract and issuance of Ejari, the Tenant will be eligible for several rights as follows:

  1. Issuance of Ejari protects the contractual parties from early termination or even terminating the contract at their wish and keeps both parties committed for the enforcement of the obligations towards each other’s
  2. Both parties benefit from registering the contract as they will be members of RERA to keep themselves updated with their rights and obligations
  3. The contractual parties benefit from Ejari for issuance of account with DEWA 

IF YOU DO NOT AUTHENTICAL YOUR TENANCY CONTRACT:


You will not be subject to any of the previously mentioned benefits as protected by the laws. Moreover, you will face restrictions and difficulties if you needed to file a case or raise a dispute as you will be required to arrange more documents proving the tenancy relation unlike someone who has issued Ejari and eligible for all the rights mentioned.

After the explanation with regards to proceedings for issuance of Ejari and the legal framework for registering tenancy contracts, the following lines will mention the most common areas of dispute within the industry.

A common example is the right of the tenant for the renewal or extension of the tenancy contract and occupying the rented unit for a similar period.

Furthermore, the right of landlords to increase the rent amount. The aforementioned law has given the landlord the right for the amendment of tenancy contracts in accordance with article 14 from the law regulating the rental relationship between landlords and tenants.

However, these amendments shall align with the real estate industry in general and the economic situation within the Emirate of Dubai.

This increment is also confirmed through RERA which is calculating the increment depending in the area and details of the occupied unit.

EXAMPLE OF RENT CALCULATION


The following is an example to one of the areas where the increment has occurred in accordance to RERA in the Emirate of Dubai:

The increment of the rent amount in the Business Bay Area specifically in the Bay Square; while checking through RERA with the details of the Tenancy Contract and any unit as such; the increment suggested by DLD is approximately 5% from the total value of the tenancy contract. Thus, the parties shall not increase the amount further without the acceptance of both the parties

HOW CAN WE HELP? 


Hamdan Al Shamsi Lawyers and Legal Consultants are perfectly positioned to assist our clients in respect of all claims in the Dubai Courts. Our firm has three divisions including (1) the DIFC team; (2) the UAE Litigation team; and (3) the Corporate team, and currently deal with a network of other law firms around the world including the USA, UK, France, Italy, Germany, Saudi Arabi, Oman, Kuwait, Bahrain, Jordan, Lebanon, China and Australia.

Our specialized lawyers in Real Estate and Property Law will be able to further assist and answer any questions you may have.

 

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