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Insights - Understanding the Lease Agreement in Dubai: A Tenant Guide in 2025
Understanding the Lease Agreement in Dubai: A Tenant Guide in 2025
- Better Informed
- 10 Apr, 2025
Table of Contents
- Governing Laws for Dubai Rental Contracts
- What is the Tenancy Lease Agreement in Dubai?
- Important Tenancy Lease Contract Clauses
For rental properties in Dubai, one of the most important parts is the tenancy contract, which regulates the rental property market. As a landlord or tenant in Dubai, it is your responsibility to understand the rental contract, including your duties and rights, to avoid potential issues, errors, and ambiguities. In Dubai, the rental contract between a landlord and tenant is governed by DLD regulations, specifically Law No. 26 of 2007, also known as the Dubai Law of Rental Contracts. This law outlines the responsibilities and rights of landlords and tenants. It is essential to read and understand the agreement carefully before signing it. We have compiled this tenant guide to help you easily understand a tenant lease agreement.
Governing Laws for Dubai Rental Contracts
Dubai’s rental agreements operate within a structured legal framework, primarily defined by Law No. 26 of 2007, which regulates the Relationship Between Landlords and tenants, and its amendments. Key regulations include Decree No. 43 of 2013, which governs permissible rent increases, and Decree No. 26 of 2013, outlining procedures for resolving disputes through the Rental Dispute Settlement Centre (RDC). These laws ensure transparency, fairness, and accountability in rental practices, striking a balance between the rights of landlords and tenants while maintaining market stability. Compliance with this framework is mandatory for all parties, reinforcing Dubai’s commitment to equitable tenancy relations.
What is the Tenancy Lease Agreement in Dubai?
In a tenancy or rental agreement, the tenant and landlord are legally bound by a contract allowing the tenant to use the property for a specified time and purpose. The lease agreement mentions all the terms, conditions, and requirements on which both parties agreed. A tenancy lease agreement helps you avoid misunderstandings and potential disputes that may arise in the future.
Landlords and tenants can download the rental contract from the official DLD website and the Dubai REST App. This lease agreement is editable and available in English and Arabic. Both parties have the authority to include any specific clauses they want in their tenancy lease agreement. Here are the aspects included in the Dubai rental agreement:
- Contract terms and conditions
- Ejari registration
- Governing laws
- Duties of the landlord
- Duties of the tenant
Ejari registration and other associated costs are included as additional costs of renting in Dubai. So, make sure you are aware of them before entering into a rental agreement.
Important Tenancy Lease Contract Clauses
Even though landlords and tenants are free to add any specific clause they want in the rental agreement, certain mandatory tenancy lease clauses are already included as part of the agreement.
Attach an Addendum to the Contract
Both the landlord and the tenant must attach an addendum to the rental agreement. The addendum must elaborate on all the terms and conditions included in the tenancy agreement. The things that must be explained in the addendum, but are not limited to, are given below.
- Who pays for what services?
- To what extent can tenants carry out maintenance?
- What instances require a NOC from the landlord?
Terminating the Tenancy Contract
The rental contract can only be broken or terminated with the consent of both parties. It means when the contract is over, it will be renewed automatically for the same duration or at least 1 year if the landlord has no objections or disputes with the tenant living in the property. One can only break the contract in the middle if the other party agrees.
90-day Prior Notice
If the landlord does not wish to renew the contract or if the tenant wants to make changes to the existing one, a 90-day notice must be sent to the registered email address of the other party.
What happens when the landlord or the tenant dies?
If the landlord or a tenant dies, it does not affect the rental agreement. Instead, the contract will be transferred to the deceased's heir. If the heir wants to terminate the tenancy contract, it must be communicated to the other party within 30 days.
What if the property is transferred to a new owner?
If the property is transferred to the new owner before the end of the rental agreement, the tenant has the right to live on the property until the contract expires. Even though it is not legally necessary to change the tenancy contract with the new owner, doing so and updating the details will help you avoid any potential problems or disputes in the future.
Details Included in a Dubai Tenancy Contract
The Ejari system has a standard format for rental agreements, which requires the following details of the tenants and landlords to be included in the tenancy contract:.
- Names and contact details of the landlord and the tenant
- Property address, location, building name, and size
- Property usage
- Contract period
- The DEWA premise number
- The property plot number
- The method of payment
- The signing date of the contract
- Agreed rent amount
- Security deposit amount
The above details are compulsory in the contract, but both parties can also explain any additional clauses in the addendum that they have agreed on.
Documents Required for a Rental Contract in Dubai
The following documents are required for a tenancy contract in Dubai:.
- Emirates ID
- Copy of passport (landlord and tenant)
- Copy of a valid residence visa
- A check for a security deposit
- A check for the agency fee (if needed)
Who Needs to Sign the Tenancy Contract in Dubai?
After the tenancy contract has been drafted, all relevant parties must sign the agreement in front of a witness to make it valid. According to the DLD, the following parties are the official signatories for rental contracts in Dubai:.
- The landlord
- The tenant
- The legal representative of the landlord with a power of attorney
- Licensed property management company
Tips for a Smooth Tenancy
- Inspect the property thoroughly before signing. Document any existing damage with photos or videos to prevent disputes over repairs.
- Document all communications and agreements, keep copies of emails, messages, and signed contracts, including the Ejari-registered tenancy contract.
- Maintain transparent communication with your landlord: address maintenance requests or concerns promptly to avoid escalation.
- Understand your legal rights and review Dubai’s tenancy laws, such as Law No. 26 of 2007, to safeguard against unfair practices.
Conclusion
Tenants in Dubai need to understand the points outlined in the lease agreement. Seeking legal advice or clarification from the landlord before signing a lease is a crucial step in ensuring a transparent and mutually beneficial tenancy experience.
So, contact us today and get started with a smooth and legal tenancy in Dubai.
Related blogs:
How to Rent in Dubai: A Comprehensive Guide for Tenants
Frequently Asked Questions
As a tenant, what does an Ejari safeguard me against?
As a tenant, Ejari offers an immutable record of your rental contract with the landlord, guaranteeing peace of mind for both parties. It safeguards against any disputes between the tenant and landlord, such as a sudden rent hike or illegal modifications to the property by the tenant.
What type of lease is best for a landlord?
A fixed-term lease is great for landlords and tenants because they both can predict and rely on the fixed rental cost every month. It's still possible to cancel a fixed-term lease. However, the tenant may end up paying a penalty for breaking the agreement.
Can I register my Ejari via my mobile phone?
Yes, you can download the Dubai REST app and visit the ‘Services’ section. Then, select “RERA” and choose ‘Register Ejari Contract’. Simply fill in the required fields and upload the documents, and then click ‘Submit’.
What is the biggest responsibility of a tenant?
A tenant's primary obligation is to pay rent on time, as stipulated in the lease. Rent may include base rent and, in some cases, additional costs such as utilities or taxes. Rental payment responsibilities are crucial for maintaining a tenancy and fostering a positive relationship between the tenant and the landlord.
What is the difference between a freehold and a leasehold?
Freehold ownership means you own both the property and the land it sits on, with full control and responsibility. Leasehold ownership, on the other hand, grants you the right to occupy the property for a specified term (usually 99 or 125 years), but the land remains owned by a freeholder.
