What Are Landlord Rights In Dubai – A Complete Guide And Rental Disputes Between Landlords And Tenants

Dubai’s rental property market is expanding rapidly. With the development of various new projects, many investors are investing in rental properties in Dubai. Undoubtedly, it is a lucrative investment option that can generate high ROIs. Dubai Land Department governs the relationship between landlords and tenants and defines the rules and regulations. 

It is important for landlords to be aware of their rights and responsibilities, Dubai rental laws, tenancy rights in Dubai and advice to landlords on renting properties in Dubai to avoid legal issues, enforce legal lease agreements effectively, and comply with set standards. In order to maintain the property and satisfy tenants, proprietors should have an understanding of rental real estate, its procedures, and rights and duties. Landlords have been given several rights that are protected by Dubai Tenancy Law.  On the contrary, tenants can also lodge a complaint against landlords in Dubai, if they observe any misconduct.

If you are in the rental property business, you might have seen a lot of disputes. Disputes between tenants and landlords are not uncommon. Issues such as rent hikes, dedication, and eviction can lead to legal disputes between both parties. Landlord tenant disputes Dubai can be addressed via proper channels. A complainer may seek guidance from rental disputes lawyers and if needed.

Common Reasons For Rental Disputes Between Tenants VS Landlords In Dubai:

• Unreasonable grounds for eviction or termination of the lease agreement
• Dispute on the rental increment without 3-month advance legal notice by the landlord  
• Leasing apartments with unfinished work or major defects
• Disputes over the unpaid utilities’ bills or non-settlement of legal property handover prospects
• Tenants damaging the property or engaging in illegal activities or breaching the terms and conditions of tenancy contract
• Alteration in the status of the property without the consent of the landlord
• Tenants subleasing the property without the consent of the landlord
• Multiple people staying at a property permanently without informing the landlord
• Denial of maintenance charges crossing the threshold of AED 1000 to AED 2000, mentioned on the tenancy contract
• Disagreement of rental increment acceptance by tenants

Who Resolves The Disputes Between Tenants And Landlords?

Rental Disputes Center (RDC) in Dubai is the entity that is responsible for resolving disputes between landlords and tenants. In the first place, both parties are advised to discuss the matter and find a solution that is acceptable to both parties. If they cannot find any solution, one of them may file a complaint against the other party.

Here Is How To Lodge A Rental Dispute In Dubai:

Rental issues may arise between tenants and landlords. Both parties can also resolve their matters without involving any third party. However, if they fail to do so then they should go to the rental disputes center (RDC) and resolve landlord rental disputes. You need some documents to lodge a complaint for rental dispute settlement in Dubai. These documents include but are not limited to a Passport, Residence Visa, Emirates ID, Ejari Certificate,  Tenancy Contract, Title Deed, Copies of any correspondence, etc. 

First, one should prepare the required documents before proceeding. After preparing your documents, visit RDC to lodge your dispute. It is mandatory to translate all documents into Arabic because it is the official language of the courts of Dubai. 

Note: The Landlord must give 3-months advance notification before the expiry of the agreement through email specifying the increase in rent based on the rent increase determined by RERA calculator.

Here Are Some Compelling Landlords’ Rights In Dubai:

Unprecedented growth has made Dubai a global hub for real estate investment. People are migrating to Dubai to invest and generate revenue. Dubai has experienced a significant increase in the number of residential and commercial properties, which has resulted in an increase in the number of landlords. From enforcing property maintenance standards to receiving rent on time to addressing violations of agreements to managing issues such as non-payment, a landlord has several rights in Dubai.

The Right To Receive Rent

Rental property is a business that allows landlords to meet their financial obligations and maintain their properties effectively. Based on that, a landlord enjoys the right to receive an agreed rental payment on time. Receiving rental payments is deemed a fundamental privilege for landlords or property owners in Dubai.  This right ensures a stable and predictable income flow and also fosters the element of trust and reliability. If you are a landlord, it is your right to receive rent payments on time as per the agreed terms.

The Right To Increase The Rent

The Real Estate Regulatory Agency (RERA) also authorizes landlords to increase the rent when the lease is renewed. A property owner will also charge water, electricity, gas, and other utility bills from tenants. RERA has developed a criterion to determine the increase in rent. So, a landlord must follow the given criterion or use the RERA Calculator to increase rental payment. So, a rent increase must be in accordance with the RERA Rent Calculator.

RERA Calculator should be used to determine the requirement and range of rental increase. If the current rent range is within the stipulated range, then a property owner cannot increase rent. If current rent falls between 11-2-% less than the average rent in that specific area, then a landlord may go for a 5% increase in rent. If the current rent range falls between 21-30% less than the average rent in that area, then a 10% increase in rent may be allowed.

Here Are Some Variables That Influence The Range Of Increase In Rent

Consider the following factors to determine the possible rent range of a specific property:

• Type of Property (Commercial, Residential, Industrial)
• Freehold or Leasehold
• Villa or Apartment
• Location of the property
• Size of the property 
• Number of bedrooms

Note: A landlord should inform about the increase in rent at least 90 days before the expiry of the contract. 

The Right To Evict A Tenant

Sometimes, tenants fail to meet their financial obligations and violate the decided terms of the tenancy agreement. In this case, the landlord has a right to evict a tenant for non-payment of dues. If a landlord decides to use that property for personal use or sell the property then he can also request the tenant to leave his property. A property owner has to provide a written notice period to evict the tenant.

A landlord should notify the tenant in advance about eviction. However, a property owner can also evict a tenant prior to the expiration of the tenancy period in some circumstances. Article 25 (1) of Dubai Tenancy Law allows landlords to expel tenants before the expiry of the tenancy agreement. If a property owner in Dubai faces the following circumstances, then he may demand a prior eviction from the tenant.

Note: A landlord is required to provide a 12-month official notice, certified by a Notary Public, which must be delivered via email, if he wants to evict the tenant. The landlord can also evict a tenant if he fails to pay rent or part of it, within 30 days from the date of receiving written notice 

Based on the following terms and conditions, a landlord can evict a tenant.

• If a tenant didn’t pay the rent within 30 days of receipt of a payment notice
• If a tenant subleases the unit without the consent of the property owner
• If a tenant performs illegal activities or allows others to use the property for immoral or illegal activities
• If a tenant intentionally causes damage to the property, risking the safety of the property
• If a property is at risk of collapse
• If a tenant does not obey the stipulated terms and conditions and makes the use of the property beyond the permitted use
• If tenants not renewing lease
• If a property needs demolition by a state-owned authority
• Several complains from the building management or society can lead to eviction 
• Suspicious behavior of tenants or activities that involve police or law enforcement institutions could potentially lead to tenant eviction in less than 30 days.

The Right For Property Inspection 

48-Hour Notice For Property Inspection- Landlord cannot enter his rental property until the tenancy period ends. However, he can conduct a property inspection, provided that a 48-hour notice is served to the tenant. Given that, a landlord has the right to assess the condition of the premises and ensure compliance with the tenancy agreement. But he has to provide a 48-hour notice for inspection.

The Right To Deduct Repair Costs

If a tenant causes damage to the property that goes beyond wear and tear, the landlord has a right to use the security deposit to cover the damage or repair cost. In order to ensure that the property remains well-maintained and in good condition, the landlord can use security deposits or recover expenses from tenants to manage incurred costs. This right promotes a sense of accountability and fairness.

Normally, tenants are not responsible for paying for normal wear and tear, such as the natural deterioration of a property. If damage occurs because of their actions or negligence and the scope of damage goes beyond normal wear and tear, then tenants are liable to pay required dues to fix that specific damage. Sometimes, extraordinary circumstances such as natural disasters and unforeseen accidents damage real estate; in that case, both can negotiate for repair to fix. 

Expenditure Limit: However, a tenant has to pay for minor maintenance and repairs. A tenant’s obligation for repairs is capped at a maximum expense of AED 250 per incident. If the repair amount exceeds the given threshold of AED 250 per incident, then it is the duty of the landlord to bear expenses unless the tenants’ misuse or negligence causes damage. 

The Right To Terminate The Tenancy Agreement

The landlord also has the right to terminate the tenancy agreement legally. If a tenant violates the terms of the lease or any of his actions lead to a breach, then the landlord can terminate the agreement with proper notice. The property owner can terminate the tenancy agreement if a tenant causes significant property damage or does not pay rent payments.

If such a situation occurs, a landlord can terminate the agreement and regain possession of his property. This right protects the interests and property of the landlord and also helps to maintain the integrity of the rental market. Rera rules for termination guide landlords about the required procedures.

The Right To Ask For A Security Deposit

It is the right of a property owner to ask for a security deposit to cover any potential damage or unpaid rent. A security deposit is deemed a form of financial security. A property owner can request for security deposits at the beginning of the tenancy. Normally, it is 5% of the annual rent for unfurnished and 10% for furnished properties. This right also promotes a more secure and responsible rental market.

The Right To Request For Documentation

Checking the backgrounds of tenants is essential. A landlord has the right to gather information about prospective tenants. The property owner can get information such as proof of income, employment details, references, etc. It is important to seek valuable information from tenants to make an informed decision and select a tenant. This right keeps the rental market transparent and reliable.

The Right To Maintain And Repair The Property

It is critical to maintain the health and safety standards of a property. The landlord needs to uphold the safety and habitability of their rental units and make them secure and comfortable for tenants. This specific right allows property owners to maintain the health and living standards of their real estate, prevent accidents, and reduce liabilities. It also preserves the value of the rental property.

The Right To Charge For Utilities And Services

The landlord is allowed to recover costs associated with utilities such as water, electricity, and maintenance services as written in the agreement. A property owner has the right to charge for utilities and facilities to manage the operational costs of the property and maintain the available facilities and amenities. The amount can be decided in the lease agreement to provide clarity and transparency. A property owner enjoys the right to increase the charge for utilities and services. Based on specific circumstances, he can increase the cost of utilizing these services and facilities.

Final Thought:

The scope of rental real estate in Dubai is increasing rapidly. In recent years, it has seen exceptional growth. People are migrating to Dubai for better employment opportunities and tourism purposes. This increases the demand for real estate and eventually constantly improves the rental real estate market. Landlords and tenants rights in Dubai play a crucial role in the expansion of rental property business. Landlords and tenants may face some issues or disputes.

It is not an uncommon phenomenon. They can settle their disputes on their own or visit an authorized department to resolve their disputes. Rental dispute lawyers in Dubai resolve this matter legally and address concerns of landlords. In addition to that, a landlord also enjoys a number of rights, such as the right to receive and increase rent, the right to maintain and repair the property, the right to ask for documentation, etc.

FAQs