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What Happens If My Tenant Doesn’t Pay Rent? (Dubai 2025)

  • Better Informed
  • 10 Apr, 2025
What Happens If My Tenant Doesn’t Pay Rent? (Dubai 2025)

As a landlord, you have numerous responsibilities, one of which is ensuring that your tenant pays the rent on time. Even though you have used a tough screening process before handing over your property to a tenant, there are some situations when a tenant fails to pay the rent due to financial difficulties. This is the time when a landlord has to deal with the situation sensibly and within the legal framework. This quick thinking will not only protect your interest but will also keep professional relationships with the tenant. In this blog, you explore what steps you can take if your tenant doesn’t pay the rent by keeping the rules and regulations in mind set by RERA (Real Estate Regulatory Agency).

Laws in Dubai for Default Tenancy

Laws in Dubai for Default Tenancy

Dubai’s tenancy legislation grants landlords explicit rights to terminate leases prematurely under specific conditions. Article 25 of Law No. 26 of 2007 in Dubai Tenancy Laws permits property owners to initiate eviction proceedings before the tenancy agreement expires if the tenants violate the contractual terms. A key provision applies to rent defaults: landlords may evict tenants who fail to settle payments within 30 days of receiving a formal written notice, unless both parties mutually agree to alternative arrangements.

To enforce this right, landlords must file a case with the Rental Dispute Settlement Centre (RDC), Dubai’s judicial body for resolving tenancy conflicts. The RDC evaluates evidence such as payment records and communication logs before issuing binding rulings. Tenants retain the right to contest claims during proceedings, but persistent non-payment results in eviction orders.

What to Do If a Tenant Fails to Pay the Rent?

As a landlord, it can be frustrating when a tenant fails to pay their rent. Whilst non-payment of rent doesn’t happen too often, when it does, it can lead to legal disputes and financial losses. 

If you’re in a situation where your tenant has failed to pay their rent, you might be wondering what to do about it, what options you have to recover the unpaid rent and whether you can evict them. 

Observe Rent Payment History

If the landlord keeps records of the tenant’s rental payments, this will be helpful when dealing with the non-payment issue. This record will serve as evidence in case of any dispute or legal process. When maintaining the record, be sure to include important details such as the payment date, the amount received, and the payment method. You can also use digital platforms or property management software to streamline the process.

Remind Your Tenant About Pending Rent

When you are facing rental payment issues, communication can play a vital role. If your tenants fail to pay the rent, contact them and remind them about the outstanding payment. Even though you have to maintain professionalism, approach your tenant with the intent to communicate and with enough time to respond. Communicating with the tenant will help you understand underlying issues, such as any temporary financial difficulties, and provide potential solutions.

Issue a Non-Payment Rental Notice to Your Tenant

If verbal communication is not yielding positive results, issue a formal non-payment notice to your tenant about late or missed payments. This can be done by crafting a formal letter that outlines the missed payments, the outstanding amount, and any late fees or penalties that have been incurred. The letter must have clear consequences for continuous missed or late payments and a reasonable timeframe for resolving the issue, such as 30 days. 

Document a Letter to the Guarantor

In some cases, a third party or guarantor is responsible for covering the unpaid rent. If the tenant fails to pay the rent, you must contact the guarantor as agreed in the contract. You must send a formal letter to the guarantor stating the details of the arrears and requesting immediate payment. Contacting the guarantor will ensure that all the involved parties understand the situation and their responsibilities.

Issue Eviction Notice

After the 30-day notice to the tenant who fails to pay the rent, you can issue an eviction notice to vacate the property. The process begins when the landlord issues a notice to the tenant, stating the reason for eviction and the intended date of eviction. Consult with an attorney who specialises in real estate and tenancy laws to ensure compliance with the legal process.

Suppose the tenant does not pay the rent and refuses to vacate the property. In that case, the landlord can ask the court to take action to recover the outstanding rent and initiate eviction proceedings. This process involves multiple steps, such as serving the legal notice to the tenant and then filing the case with the Rental Disputes Centre (RDC). 

Upon filing a complaint with the RDSC, the tenant will be notified, and a hearing will be scheduled. The complaint filing fee is usually 3.5% of the disputed rent, with a minimum charge of AED 500 and a maximum of AED 20,000. The court will assess the evidence and make the decision.

Rental Dispute Centre

The RDC is responsible for resolving disputes between landlords and tenants, and it is the first port of call for any disputes related to rental properties in Dubai. Once the landlord files a case, the RDC will issue a notice to the tenant, informing them of the case and setting a date for the hearing. At the hearing, both the landlord and the tenant will be allowed to present their case, and the RDC will make a judgment based on the evidence presented. All documents must be translated into Arabic and submitted along with a memorandum that outlines the contract terms and any other relevant details. 

If the RDC rules in favour of the landlord, the tenant will be ordered to pay the outstanding rent, along with any legal fees incurred by the landlord. If the tenant still does not pay within the specified time, the landlord can request that the RDC issue an eviction order. The eviction order will give the tenant a specified period to vacate the property. If the tenant fails to vacate, the landlord can request that the RDC evict the tenant. The RDC will then appoint personnel to execute the eviction. 

Preventing Tenant Issues

Whilst there is always some risk of encountering issues with your tenant, there are steps you can take to minimise this risk. The first step is to ensure that you have a well-drafted tenancy agreement in place, which clearly outlines the terms and conditions of the tenancy and the consequences of not paying rent. You should also conduct thorough tenant screenings and maintain a good relationship with your tenants to avoid any disputes.

Creating a well-drafted tenancy agreement, screening tenants, maintaining a good relationship and acting promptly are all things that an experienced property manager can do on your behalf.

Conclusion

It is very challenging for the landlord to deal with a tenant who is not paying the rent. To avoid this situation, you can take proactive and preventive steps and maintain a healthy and professional relationship between the landlord and the tenant. As a landlord, you have to familiarise yourself with relevant laws and regulations and consult with legal experts to deal with the situation promptly.

Here at Betterhomes, we manage the UAE’s largest portfolio of residential and commercial properties, with over 8,500 units under management. 

Contact us today to find out more about Betterhomes Property Management.

You may also like: The Role of Property Management in Tenant Retention.

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Frequently Asked Questions

What happens if a tenant doesn’t pay rent in Dubai?

The landlord can request an eviction order from the RDC if the tenant fails to pay within a specified period.

Can a tenant refuse viewings in Dubai?

A tenant in Dubai can refuse viewings if they are not notified in advance or if the viewings disrupt their privacy, as per RERA guidelines.

How do I file a case for non-payment of rent?

To address rent non-payment in Dubai, the initial step involves gathering all necessary documentation. Following this, you'll proceed to the Rental Disputes Settlement Centre (RDSC) to formally file your claim. You will be required to participate in any scheduled hearings as the court reviews the case. Ultimately, the court will issue its decision to resolve the matter. For the most accurate and personalised guidance relevant to your specific circumstances, it is recommended to consult with a legal professional or contact the RDSC directly.

If something breaks in the property during my tenancy, who is responsible for the repairs?

Landlords cover repairs over AED 500 (excluding wear and tear), and tenants are responsible for self-inflicted damage. Ensure these terms are in your Ejari contract. And for disputes, contact Dubai’s Rental Dispute Settlement Centre (RDSC).