The Rental Dispute Settlement Center (RDSC) in Dubai is the competent judicial authority responsible for adjudicating all disputes arising from lease contracts, whether residential or commercial. Jurisdiction of the Center • Disputes related to rent increases.• Eviction claims.• Claims for outstanding or overdue rental amounts.• Termination of lease contracts. Advantages of the Center • Fast resolution of cases.• Simplified procedures.• Judgments that are enforceable.
Rent Increase in Dubai According to the Law (Legal Conditions and Percentages)
Rent increases in Dubai are subject to clear legal regulations. A landlord is not permitted to increase the rental value except upon renewal of the lease contract and in accordance with the Rental Index issued by the Dubai Land Department. Conditions for Rent Increase • The tenant must be notified at least 90 days prior to the expiry of the lease contract.• The increase must comply with the percentage specified in the Rental Index.• It is not permissible to agree on a rent increase that contradicts the Rental Index, even if the tenant consents. Rent Increase Percentages in Dubai The percentage of rent increase varies depending on the difference between the current rent and the average rent in the area, and in some cases may reach a maximum of 20%.
Cases for Evicting a Tenant from a Property
Eviction of a Tenant Before the Expiry of the Lease Term The landlord has the right to request the eviction of the tenant before the lease term expires in the following cases: • If the tenant fails to pay the rent or any part thereof within 30 days from the date of being notified of payment by the landlord. • If the tenant subleases the property or any part of it without obtaining written approval from the landlord. In this case, eviction applies to the tenant, without prejudice to the landlord’s right to claim compensation from the tenant. • If the tenant uses the property, or allows others to use it, for an unlawful purpose or in a manner contrary to public order or public morals, or uses it in violation of planning and building regulations. • If the tenant makes alterations to the property that affect its safety in a way that makes it impossible to restore it to its original condition, or intentionally causes damage to the property. • If the landlord proves that the property is at risk of collapse, based on a technical report issued by Dubai Municipality. • If the competent government authorities decide to demolish the property and rebuild it. • If the tenant fails to comply with any of the terms of the lease agreement within 30 days from the date of being notified by the landlord. • If the leased property is a commercial premises and the tenant leaves it unoccupied without a valid reason for 30 consecutive days or 90 non-consecutive days within one year. Eviction of a Tenant Upon Expiry of the Lease Term The landlord has the right to request eviction upon the expiry of the lease term in the following cases: • If the owner wishes to demolish the property and rebuild it, or add new constructions that prevent the tenant from benefiting from the leased property, provided that the necessary approvals are obtained from the competent authorities. • If the condition of the property requires comprehensive maintenance or major renovation works that cannot be carried out while the tenant occupies the property, provided that the condition of the property is verified by a technical report issued or approved by Dubai Municipality. • If the owner wishes to use the property for personal purposes or for one of their first-degree relatives, provided that the owner proves they do not own an alternative property, or if the owner wishes to sell the property.
Property Owner’s Rights Under the Dubai Rental Law
The rights of property owners in Dubai are an essential part of the emirate’s legal framework. Clear regulations are in place to protect the interests of both landlords (lessors) and tenants, promote fair practices, reduce disputes, and reinforce Dubai’s position as a leading investment destination. The Dubai Land Department has issued a law regulating the relationship between property owners and tenants in the Emirate of Dubai, and this law applies to all leased properties within the emirate. List of Property Owner Rights in Dubai Property owners in the Emirate of Dubai enjoy specific rights related to their properties, whether residential or commercial. Below are some of the key rights granted to property owners: The Right to Collect Rent on Time as per the ContractOne of the fundamental rights of property owners is to receive rent in accordance with the terms of the lease agreement. Landlords must set clear payment terms, specifying the amount, due dates, and agreed method of payment, in order to protect this right and avoid future disputes.The tenant is required to pay the rent on time according to the schedule stated in the contract, whether monthly, annually, or as otherwise agreed. Legal action may be taken if the tenant fails to pay the rent when due. Preservation of the Property’s ConditionIf tenants are responsible for minor maintenance works, property owners have the right to ensure that their property is kept in good condition. Owners may also carry out inspections, provided prior notice is given, to ensure proper maintenance is being performed and that major repairs are addressed when necessary. Renewal of Lease TermsProperty owners may propose new terms when renewing a lease, including an increase in rent, provided such changes comply with the Real Estate Regulatory Agency (RERA) guidelines regarding rent increases in Dubai. It is important to note that notice must be given at least 90 days before the expiry of the lease contract if any changes to the terms or an increase in rent is intended.
Tenant Rights Under the Law
• The landlord must hand over the property to the tenant in Dubai in good condition and fit for habitation, as specified in the contract. However, in rare cases, it may be agreed that the tenant leases an unfinished property and completes it at their own expense. Article 15 specifies which party bears the cost of completing the property. • Under Article 16, the property owner is responsible for maintaining the property and repairing any defect or malfunction that affects the tenant’s living conditions during the term of the contract, unless the parties agree otherwise. • The property owner is not permitted to make changes or carry out renovation works that would affect the tenant’s intended use of the property. However, Article 17 allows the landlord to carry out renovation works provided the tenant’s approval is obtained. Tenant Obligations and Related Rights • If the tenant wishes to carry out any type of renovation or modification to the property, they must obtain the landlord’s permission and secure the necessary licenses from the relevant official authorities when required, as stated in Article 19. • The tenant pays a refundable security deposit upon renting the property. According to Article 20 of the law, if the landlord refuses to refund the security deposit in whole or in part due to an unjustified deduction for alleged damage to the property, the tenant may seek assistance from the Rental Dispute Settlement Committee to resolve the matter. • The tenant must return the property to the owner in a condition similar to that in which it was received at the time of signing the contract, excluding normal wear and tear or damage resulting from causes beyond the tenant’s control. In the event of a dispute between the parties, the matter may be referred to the Rental Dispute Settlement Committee in accordance with Article 21. • Article 22 obliges the tenant to pay all costs and taxes due for the use of the property to government entities and departments, as well as any fees or taxes imposed on subleasing, unless the lease contract provides otherwise. • Under Article 23, upon vacating and handing over the property to the owner, the tenant is not permitted to remove any permanent improvements that they have made to the property.