Dubai’s rental market is growing due to the increasing tourism in the country. There is a great number of people that come to the city. This has also increased the number of people interested in investing in Dubai real estate. If you are someone who wants to purchase a property to rent in Dubai, it is important to know tenancy laws and contracts.
A tenancy contract Dubai is a complex document that makes the renting process smooth. This guide will provide detailed information about tenancy contracts and its essential elements.
What is a Tenancy Agreement in Dubai?
Tenancy contract which is also known as a rental agreement, is legal documents required by the government. It is a legal contract between the landlord and tenant. It has detailed information about terms and conditions set by the landlord for the tenants.
The amount of rent, payment schedule, duration, and liabilities of both parties. The tenancy contract Dubai is made in accordance with the law and should follow the guidance of the government.
Main Elements of a Tenancy Agreement Dubai
The tenancy contract which is made between the landlord and the tenant should have the following essential elements:
Element | Detail |
Details of Property | The details about the property are mentioned from the address to the size and the type of property. |
Term of Lease | The tenure of the lease which is mostly one year is also mentioned. |
Amount of Rent | The total amount of rent along with the schedule of payment is also written. |
Amount for Security | Terms and condition of security along with the amount is also added. |
Terms of Maintenance | Responsibilities of maintenance on both parties are declared in the contract. |
Clause of Termination | Contract termination conditions are also mentioned in the contract. |
Tenancy Laws in Dubai
The tenancy laws in Dubai are regulated by the Real Estate Regulatory Agency. These laws are complex and are enforced to ensure safety of the citizens of the country. Tenancy contract Dubai is regulated by this authority and it is done to provide assurance to both parties. Dubai rental laws were made in 2007 and then amendments were made to the law in 2008.
Decree no. 26 of 2013 was added to the law to create a Rental Disputes Settlement Centre. Rera uses the Ejari system to ensure that all tenancy agreements are properly monitored.
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Things to Remember While Signing Tenancy Contract Dubai
There are several clauses in the tenancy contract which you must know in order to understand what you are signing and what the tenancy contract means. Here are the clauses added in the agreement:
Contract Breaking: The contract is broken only when both parties, the owner and the tenant agree to break the contract. If none of the parties agree then the contract will be renewed according to the time and details mentioned in the contract or a year.
Owner’s Notice: A 90-days notice must be provided to the tenant through a registered mail before the contract expires if there are any changes required.
Death of Any Party: If there is a case of death from any side, the contract isn’t canceled immediately. Instead the contract is transferred to the heirs who can terminate it. The termination takes effect after a period of 30 days.
Ownership Transfer: If the ownership is transferred before the term, the tenant has the liberty to stay until the contract ends. However, it is essential to update Ejari about the contract and no changes are required to be made.
What Information is Required in a Tenancy Agreement Dubai?
The Dubai rental agreement need to have a common format, which is decided by the Ejari system. The contract has some specific information needed:
- Names of both parties.
- Contacts information of both parties.
- Address of the Property.
- Agreed Rent
- Schedule of Payment
- Tenancy Duration
The tenancy contract Dubai might have the following additional information:
- Security Fee
- Responsibilities of Maintenance
- Utility Payments
- Rules of Termination
Documents Required for Tenancy Contract Dubai
To create a tenancy contract in Dubai, you will require some specific documents. The documents required by Ejari contract are given below:
- Passport and visa duplicates of the tenant and the landlord
- Emirates ID copy of the tenant, if any.
- Abstract of title or evidence of title.
- DEWA (Dubai Electricity and Water Authority) bill
- Ejari registration form
- Receipt of security deposit (if any)
Who Needs To Sign The Contract?
The contract needs all the above mentioned documents and the information and once the contract is drafted, it must be signed by all the people involved. A witness is also required in order for the contract to be valid and the signing is done in front of that witness. Dubai Land Department requires the following signatures for the rental contract:
- Owner of the Property
- The Tenant
- Representative of the owner with PoA
- Property management company (Licensed)
Sample of Tenancy Agreement
You Will Require Expert Help
Legal stuff can get difficult sometimes, and if you aren’t experienced in this field, the difficulty level goes to the max. So, if you need help with legal documentation, Zingo Smart Stay is always there to help you out. We have experts who are there to do this for you, so if you need help, you know where to find us.
Ejari Registration Fees
Services | Amount (AED) |
Tenancy Contract Registration | 100 |
Knowledge Fee | 10 |
Innovation Fee | 10 |
Service Partners Fee | 95 (VAT excluded) |
Registering Via Real Estate Services Trustee Centers | 120 |
Final Takeaway
Having knowledge about the tenancy contract Dubai is important to ensure that you lease your property with its proper value. You need to know what are the important clauses, the documents required and where you can download the contract. Dubai has very strict real estate laws and Real Estate Regulatory Agency enforces them properly.
If you have a property in Dubai and want to avoid all of such hassles you will need a licensed property management company. Zingo Smart Stay is the leading and most trusted company in the market. Hire them to avoid any hassles in the future.
Frequently Asked Questions
What Are the Rules for a Tenancy Contract in Dubai?
The Real Estate Regulatory Agency is created to regulate tenancy in the country. The contract and any amendments in the contract must be registered with the RERA in Dubai.
What Happens if Ejari is Not Done?
The contract will not be enforceable without the Ejari. This is a protection that legalizes your contract and allows you to take action if anything goes wrong.
Can a Landlord Increase Rent After 1 Year in Dubai?
The rental amount can be increased once in a year according to rental laws in the country. The owner has to inform the tenant early before the contract ends. Owner has to inform 90 days ahead.
Can I Terminate My Rental Contract Early?
There are specific laws regarding the early termination of the tenancy contract Dubai. If both parties agree then the contract can be canceled but there are several rules that must be followed.