Extensive job opportunities, luxuries, tourist attractions, endless business opportunities, and no-tax properties are the main grounds for people moving to the UAE. Among other cities, Dubai is a go-to city for foreigners owing to more business opportunities, excellent knight life, extensive range of attractions, family activities, luxury hotels, and more. Although Abu Dhabi is the capital, Dubai still secured high scores and attends to a large number of foreigners every year. With many different nationalities and cultures, this city is the preference for everyone. That is why property rental Dubai companies get more customers every year, owing to the high ROI and other perks the city offers.
Abu Dhabi, on the other hand, has its own positive sides. The emirate is more peaceful, traditional, and wealthiest. It is known as a more family-oriented city. In addition, Abu Dhabi is expensive with higher rents and has more beaches than Dubai. Both cities have their own plus points.
No matter which city you opt to rent a property in, there are some tenancy rules every tenant is obliged to follow. As the law is strict in the UAE, being aware of the tenancy laws and important considerations of renting a property can save you from trouble.
Without any further ado, let’s discuss the laws and essential details tenants should know beforehand.
Tenancy Law
The first thing people need to attend to is to find the best property for rent, be it an apartment or villa. However, there are some tenant rules made by RERA and being familiarized with them before signing the contract with the landlord keeps you one step ahead. The important rules are as follows:
- The tenant contract must be registered through the Ejari system to ensure the property is not rented twice.
- If the landlord agrees to prolong the tenant’s stay at the property after the expiry of the tenant agreement, the terms will be extended under the same terms and conditions for the same time period or for one year.
- The transfer of property to the new owner will not affect the tenant’s right to the property.
- In case of amending the rules under the contract, both parties must notify 90 days before the expiration of the existing contract.
Terminating Contract
Like contract laws, contract termination has some rules as well, which tenants must be aware of. Below are the contract termination rules:
- Both parties (landlord and tenants) cannot terminate the contract without mutual coordination. In case of termination, both parties must agree.
- If the landlord does, the tenancy agreement remains in effect, and the property will be transferred to the heir.
- The tenant should abide by the termination clause written in the agreement in case of terminating the contract. Otherwise, the landlord can demand compensation. In every case, the tenant must give a notice period of 90 days before termination.
Things To Know Before Renting A Property
Now that you are aware of the basic rules of commencing and terminating the contract, there are a few details that every tenant must know to avoid the troubles and difficulties afterwards.
Let’s delve into these details.
1. Notifying Before Increasing Rent
According to articles 6 and 14 of Dubai law no. 26, the landlord can raise the rent after the previous contract reaches the time limit. However, he must notify the tenant of the rise in the rent by sending a 90 days notice period.
2. Limit The Maximum Increase
The landlord may have the leverage to raise the rent, but the Dubai Land Department has set a limit, and the landlord cannot exceed that limit. The average figure is decided in contrast to the neighborhood rent.
3. Cutting Supplies Is Illegal
The tenant may face consequences like eviction in case of not paying the rent. However, it is illegal for landlords to cut off the electricity or water supply. In case the tenant faces such circumstances, they can file an appeal to the Dubai Dispute Center for violating the rule and restoring the supplies.
4. Eviction Rules
In case of eviction due to restoration and repair, the landlord must give a 12-month notice to the tenants. However, some circumstances permit instant eviction, not paying rent within 30 days after receiving notice, using the property for illegal or immoral activities, or renting out the property without the landlord’s consent.
5. Ejari Agreement Is Paramount
A tenant agreement is not enough. It is mandatory to register by the Dubai land Department, known as the Ejari agreement. Whether renting properties for sale Abu Dhabi or Dubai, legal registration is essential.
In all, every country practices specific rules to maintain law and order within the country. Whether planning to move to the UAE or looking for a property to rent, being familiar with these rules can save you from complications and trouble forthcoming.
