Rental agreement in Dubai: A comprehensive guide

A tenancy agreement is an essential document in the property market, especially in Dubai. It regulates the rights and obligations of landlords and tenants and is essential to ensure a harmonious tenancy. In this article, you will learn everything you need to know about the tenancy agreement, including its legal basis, typical contents and special features in Dubai.

What is a tenancy agreement?

A tenancy agreement is a legally binding document that sets out the terms and conditions for renting a property. It defines, among other things:

• The parties (landlord and tenant)
• The rental period
• The amount of rent
• Payment terms
• Regulations for the deposit
• Obligations of the parties
• Cancellation periods and conditions

Legal basis of the rental agreement

In Dubai, the lease agreement is governed by the UAE legal system, which is overseen by the Real Estate Regulatory Agency (RERA). It is important to familiarise yourself with the local laws to ensure that all terms of the contract are legally sound.

Typical contents of a tenancy agreement

A comprehensive lease agreement should include the following points:

• Identification of the parties: Name, address and contact details of landlord and tenant.
• Description of the property: Details of the property, such as address and type (residential property, commercial property, etc.).
• Tenancy duration: The duration of the tenancy, often as fixed or indefinite, as well as the start and end dates.
• Rent: Amount of the monthly rent and payment due dates.
• Deposit: Rules on the deposit, amount and repayment modalities.
• Rights of use: Detailed description of the authorisations and restrictions on the use of the property.
• Cancellation regulations: Deadlines and procedures for terminating the tenancy.

Special features of the rental agreement in Dubai

Although the basic regulations for tenancy agreements are similar in many countries, there are special regulations and practices in Dubai:

• RERA registration: tenancy agreements must be registered with RERA to be legally valid.
• Ejari system: This is a remote registration programme for documenting and managing leases.
• Rent increase clauses: These must be clearly defined in the lease agreement to avoid disputes later on.
• Service charges: Monthly service fees are often due in addition to the rent and should be listed in the contract.

Frequently asked questions about tenancy agreements

How long is a rental agreement valid in Dubai?

The duration of a rental contract can vary, but the usual terms are one year or two years. An open-ended contract is also possible.

What happens if the rental agreement is not honoured?

If one party breaches the terms of the tenancy agreement, the other party can take legal action. The provisions of the rental agreement and the relevant laws of the UAE must be taken into account.

Illustrative example on the topic: Tenancy agreement

Imagine a family moves to Dubai and wants to rent a flat. They find a beautiful flat in a lively neighbourhood. However, before they move into the flat, they need to make sure that the tenancy agreement is properly drawn up and registered. The landlord and the family agree on a rental period of two years at a fair price. Both parties sign the contract and register it in the Ejari system, which ensures legal certainty. After one year, the family wants to terminate the lease due to a job change, which is easily possible according to the procedure set out in the contract. This example illustrates the importance of a well-structured tenancy agreement and how it helps to avoid disputes.

Conclusion

A tenancy agreement is an essential document for any rental relationship in Dubai. It protects the rights and obligations of both parties and provides clarity and security in the tenancy. To avoid conflicts later on, it is crucial to understand all the terms of the tenancy agreement in detail and to find out about the legal framework in Dubai. If you have any questions about tenancy agreements or property valuation in Dubai, you can contact a real estate agency at any time.