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What is a lease agreement? A tenant guide
Better informed

What is a lease agreement? A tenant guide

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, knowing your rights and responsibilities can help you avoid issues, errors, and misunderstandings. In Dubai, the rental contract between a landlord and tenant is governed by Dubai Land Department (DLD) regulations, specifically Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai, as amended by Law No. (33) of 2008. The 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.

Key takeaways

  • Dubai tenancy relationships are mainly governed by Law No. (26) of 2007 as amended by Law No. (33) of 2008.
  • A tenancy contract should clearly state the property details, lease purpose, contract term, rent, payment method and owner details where the landlord is not the owner.
  • An addendum is optional and can be used to record additional terms agreed by both parties.
  • A 90-day notice generally applies when either party wants to change the contract terms or rent before renewal unless both parties agree otherwise.
  • Specific landlord eviction grounds at the end of a tenancy require 12 months' notice through a Notary Public or registered mail.
  • The Smart Rent Index determines the permitted rent increase during renewal, where applicable.

Governing laws for Dubai rental contracts

Dubai’s rental agreements operate within a structured legal framework, primarily defined by Law No. (26) of 2007, as amended by Law No. (33) of 2008. Key regulations include Decree No. (43) of 2013 Determining Rent Increase for Real Property in the Emirate of Dubai, which sets the maximum rent increase percentages that can apply when renewing eligible contracts. Decree No. (26) of 2013 Concerning the Rental Disputes Settlement Centre in the Emirate of Dubai established the centre to handle rental disputes.

These laws explain the main rights and responsibilities of landlords and tenants and provide a clear framework for Dubai’s real estate rental market.

What is the tenancy lease agreement in Dubai?

What is the Tenancy Lease Agreement in Dubai?

So, what is a lease agreement? It is a legal contract between a landlord and tenant that allows the tenant to use a property for a specified time and purpose in return for rent. The lease agreement outlines all the terms, conditions, and requirements both parties agreed to. A tenancy lease agreement helps you avoid misunderstandings and potential disputes that may arise later.

For more information on Dubai landlords and tenants' rights, renters can refer to the Unified Ejari Tenancy Contract issued through the Dubai Land Department. The DLD document provides the required tenancy details and lets both parties add special conditions when needed.

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

Online Ejari registration and other associated costs are included as additional costs of renting in Dubai. Make sure you understand them before entering into a rental agreement.

Important tenancy lease contract clauses

Even though landlords and tenants can agree on additional terms, the Unified Ejari Tenancy Contract already provides standard terms for the rental relationship. Additional terms can also be added when both parties agree, provided those terms do not conflict with Dubai law.

Attach an addendum to the contract

An addendum is not mandatory for every tenancy agreement. The Unified Ejari Tenancy Contract allows an addendum when the parties add terms. All parties should sign any such addendum.

These extra terms can help clarify questions such as:

  • Who pays for what services?
  • To what extent can tenants carry out maintenance?
  • When do you need a NOC from the landlord?

Putting these details in writing can make responsibilities clearer for both sides.

Terminating the tenancy contract

You cannot end a valid tenancy contract unilaterally during its term. Under Article 7 of Law No. (26) of 2007, it can be terminated by mutual consent or in accordance with the legal provisions of the law. The contract should be checked carefully for any agreed early-termination terms before either party decides to end the tenancy.

90-day prior notice

Either side that wants to amend the lease terms or review the rent must notify the other party at least 90 days before the contract expires. The RDC treats this 90-day window as a strict legal requirement for rent changes. The same 90-day period applies where a party does not wish to renew under Article 14.

A 90-day notice should not be confused with the separate 12-month notice required for certain landlord eviction grounds.

12-month eviction notice

If a landlord wants to recover the property after the lease expires for specific reasons such as selling the property, personal use, demolition or extensive renovation, Article 25(2) of Law No. (33) of 2008 requires at least 12 months’ notice. The notice must state the reason and be served through a Notary Public or by registered mail. The 12-month period ends on the same day the lease finishes.

What happens when the landlord or the tenant dies?

If the landlord or a tenant dies, the rental agreement does not end. Instead, the contractual relationship continues with the heirs. If the tenant’s heirs wish to terminate the tenancy, termination takes effect no earlier than 30 days after notifying the landlord or on the contract expiry date, whichever comes first.

What if the property is transferred to a new owner?

If the property is transferred to a new owner before the end of the rental agreement, the tenant has the right to continue occupying the property until the fixed-term lease expires. A change in ownership does not cancel the existing tenancy rights.

How do rent increases work in Dubai?

Dubai’s rental rules govern rent increases at renewal. Decree No. (43) of 2013 sets the maximum rent increase according to how far the current rent falls below the average rental value of similar properties.

The maximum increases are:

Maximum rent increase

Current rent compared with the rental value

0%

Up to 10% lower

5%

11% to 20% lower

10%

21% to 30% below

15%

31% to 40% below

20%

More than 40% lower

The Smart Rent Index uses rental values, building classification and other property data to help determine the applicable increase. DLD also states that when a landlord wants to apply an eligible rent increase, the tenant must receive the required 90-day notice before the contract expires.

Before agreeing to a renewal, tenants can use the DLD rental increase calculator to calculate the rent increase in Dubai, check the permitted percentage and then discuss the proposed rent with the landlord.

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 Unified Tenancy Contract issued by DLD also records details such as the Makani number, property type and the landlord or tenant’s Emirates ID details.

These details are compulsory in the contract, but both parties can add additional clauses as needed.

Documents required for a rental contract in Dubai

The required documents depend on whether you register the tenancy through the Dubai REST App, the DLD website, or a Real Estate Services Trustee Centre.

Ejari registration requirements

Registration channel

Required documents

Current fee

Dubai REST App / DLD website

Copy of the Unified Tenancy Contract

AED 177.75

Real Estate Services Trustee Centre

Original Unified Tenancy Contract and Emirates ID

AED 220

A legal representative must also provide the relevant Power of Attorney in Dubai when acting on behalf of the landlord or tenant.

Documents that may be requested during the rental process

A landlord or real estate agency in Dubai may request additional documents while preparing or finalising the tenancy, such as:

  • Passport copy
  • Residence visa copy
  • Security deposit cheque
  • Agency fee cheque

Who needs to sign the tenancy contract in Dubai?

After drafting the tenancy contract, 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
  • The authorised representative of the tenant where applicable
  • A licensed property management company in Dubai, where it is acting on behalf of the landlord

What happens if there is a rental dispute?

Disagreements can sometimes arise between landlords and tenants over rent, maintenance, contract renewal or other tenancy terms. The Rent Disputes Settlement Centre (RDC) can help parties deal with these issues through its specialised judicial system.

If a dispute reaches the RDC, tenants and landlords can:

Try an amicable settlement: The RDC’s conciliation service gives both parties a chance to resolve the issue with a conciliator before proceeding with a full rental case. If both sides reach an agreement, the RDC can enforce the approved settlement.

File a rental case: Rental disputes can be registered online through the RDC for consideration by the relevant committee.

Appeal a decision: An eligible rental judgment can be appealed within the applicable time limit. An appeal against a First Instance judgment is generally filed within 15 days.

Enforce a judgment: The RDC has an execution process for enforcing rental judgments, including eviction and monetary claims.

Seek guidance first: The RDC’s Virtual Judge provides free legal guidance on rental rights before a party decides to file a lawsuit.

Keeping copies of the tenancy agreement, Ejari certificate, rent payment records, notices and relevant messages can help you explain your position if a disagreement arises. The RDC also accepts supporting documents such as correspondence, notices, cheques and utility bills when relevant to a claim.

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, and keep copies of emails, messages, signed contracts, and the Ejari-registered tenancy contract.
  • Keep communication with your landlord clear, and address maintenance requests or concerns early to help prevent problems later.
  • Understand your legal rights and review Dubai’s tenancy laws, such as Law No. (26) of 2007, as amended by Law No. (33) of 2008, to safeguard against unfair practices.
  • Check the Smart Rent Index before renewing if your landlord proposes a rent increase.
  • Keep proof of rent payments, notices and property handover documents in case a disagreement arises later.

Renting a home in Dubai

The right home starts with more than the property itself. Renters also need to consider location, contract terms, and the costs that come with the tenancy.

A renter looking for an apartment for rent in Dubai can compare different communities before choosing a home. Options range from studios for rent in Dubai for single professionals to larger houses for rent in Dubai for families.

Community choice can make a noticeable difference to both rent and daily life. An apartment for rent in Business Bay suits professionals who want quick access to offices, restaurants and city landmarks, while an apartment for rent in Dubai Marina offers waterfront living with plenty of dining and leisure options nearby. Families may prefer villa communities where schools, parks and everyday services are closer to home.

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. By clarifying the agreement clauses, you can avoid unexpected issues and enjoy a smooth tenancy.

A clear tenancy contract can also make discussions about renewal, rent increases, maintenance, and ownership changes much easier. betterhomes provides guidance for renters comparing homes and navigating the Dubai real estate market.

Looking to stay informed about Dubai’s property market? Explore the latest Dubai real estate news from betterhomes for rental trends, market updates, and useful property insights.

Frequently asked questions

What is a lease agreement?

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A lease agreement is a legal contract between a landlord and tenant that allows the tenant to use a property for an agreed period and purpose in return for rent. It outlines key terms such as the rental amount, payment schedule, contract period, and each party's responsibilities.

As a tenant, what does an Ejari safeguard me against?

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As a tenant, Ejari gives you an official record of the registered rental contract and its agreed terms. It does not prevent every dispute, but having the tenancy properly registered can provide useful documentation if a disagreement needs to be resolved.

What type of lease is best for a landlord?

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A fixed-term lease is great for landlords and tenants because both can predict and rely on the fixed monthly rent. You can still cancel a fixed-term lease. However, the tenant may have to pay a penalty for breaking the agreement.

Can I register my Ejari via my mobile phone?

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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, upload the documents, and click ‘Submit’. Once submitted, your landlord must log into their own app to digitally approve the request before you can pay the fee and instantly download your Ejari certificate.

What is a tenant's biggest responsibility?

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A tenant's primary obligation is to pay rent on time, as stipulated in the lease. Properly maintaining the property and following the agreed tenancy terms are also important parts of the tenant’s responsibilities.

What happens if the landlord wants to sell the property?

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Selling the property in Dubai does not automatically end a fixed-term tenancy. The tenant can remain under the existing agreement. If the landlord seeks eviction because the property is being sold, the 12-month notice requirement under Article 25(2) applies.

Who is responsible for maintenance in a Dubai rental property?

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Unless the parties agree otherwise, the landlord is responsible for maintenance work and defects that affect the tenant's intended use of the property. The tenancy contract can also clarify which minor maintenance tasks the tenant must handle.

How much does Ejari registration cost in Dubai?

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Current DLD fees are AED 177.75 through the Dubai REST App or DLD website and AED 220 through a Real Estate Services Trustee Centre.

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