Tenancy Contract is nothing but an official agreement between the landlord and the tenant regarding the property that is going to be rented. The Tenancy agreement is mandatory while renting a property in Dubai.
Both the landlord and tenant should sign the tenancy contract before occupying the property.
1. Things a tenant should know
Everyone knows that the tenancy contract is mandatory for renting a property in Dubai. But before signing the contract, make sure that you know certain things
- Always be aware if the landlord that you are approaching can be trusted or not. This can be done by checking the title deeds where the name of the landlord is displayed and verifying it with their name on the passport.
- Ask the landlord about the proof of payment of all service charges.
- Be sure that the property you are approaching is a reliable property and the real estate agent you are approaching has an authorized RERA ID. This can be verified by getting in contact with RERA itself.
- Once a decision is made by you regarding the property, visit the property with your landlord to check if the property is in a good condition and is in the way described by the landlord.
- If the property is furnished, jot down the items of the property and get it signed by the landlord.
- Remember and make it necessary that your landlord signs the rental agreement along with you.
- Pay the fees to the agency only after you are handed with the keys of the property.
- Keep in mind that all the maintenance and repair works are to be taken care of by the landlord and make sure that it is mentioned in the Tenancy Contract.
- Before signing the contract, go through the entire contract, the rules, and regulations mentioned in it thoroughly.
2. Things a landlord should know
- Before handing over the property to the tenant, the landlord should know the accurate reason behind approaching his property. Is it because of their need for a larger space? change of their job? or due to a disturbed relationship with the previous landlord. Things like these should be known crystal clear.
- The landlord should know how the property is going to be used by the tenant. He should know if the apartment will be used solely by the tenant or for any subletting purposes.
- The property owner should go for a background check of the tenant to know the complete details of him.
- Number of people that are about to share the property should also be known to the landlord. In case if the number of people is more, the landlord should either adjust the rent among them or restrict the number of people by stating the same in the tenancy contract.
3. Standard tenancy contract of Dubai
DLD had introduced new form of standard tenancy contract in Dubai that has to be signed by party who are going to lease the property.
The new tenancy contract makes sure that the provisions of the contract are in alignment with the provisions of the Law no 26 of 2007 thereby maintaining a healthy relationship between the landlord and the tenant.
The main purpose of the standard tenancy contract is to minimize the disputes between the landlords and the tenants and preserving the rights of both the parties.
4. Template of Standard Tenancy Contract
Details of the landlord or the owner
The tenancy contract contains the details of the owner like owner name, landlord name, landlord phone number, and email id
Details of the tenant
The tenancy contract should include details of the tenant like tenant name, tenant phone number, tenant email id
The details of the property like property size, property type, building name, property number, and the location should be included
The period or the duration up to which the contract will be valid should be added to the tenancy contract
The amount of rent that the tenant should pay to the landlord must be specified accurately in the tenancy contract.
5. Registration of tenancy contract with Ejari
Real Estate Regulatory Agency (RERA) of Dubai has introduced an online portal called Ejari (that translates Rent in Arabic) where all the Dubai rental and lease contracts should be recorded.
It aims at the growth of the Dubai rental market by managing the legal requirements and to protect the landlords and tenants from rental malpractices by preserving their rights.
This online based system helps the landlords and the tenants in having a clear picture of the rental payments and the tenancy contract. It makes sure that the payment of rent is fixed and regulated as stated in the tenancy contract without any disputes and a rental receipt is provided upon the completion of the registration process.
Go through : What is Ejari? how to get registered with Ejari?
6. Breaking a tenancy contract
During situations like change of job, relocation of workplace or any other personal reasons, the tenant should make sure that he has gone through the tenancy contract before signing it to see if any break clauses are mentioned in the agreement.
If the landlord did not mention any break clauses in the rental agreement, then he needs no obligation to agree for the same.
In general,the tenancy contracts come with the break clauses which mentions penalties along with the notice period that the tenant should pay. Usually the penalty can be a 1 or 2 month rent along with the notice period of 2-3 months prior to the cancellation.
When there is no scope for the tenant to break the contract, then the amicable option is come to an agreement with the landlord regarding the penalty as mentioned above.
If there is a mutual agreement and understanding between the tenant and the landlord, the tenant need not continue to pay the rent.
If the tenant paid the entire rent in the initial payment itself, then the money will be refunded to the tenant by pro – rata basis.
7. Renewal of tenancy contract
The tenancy contract of Dubai is valid for a year and can be renewed after that time period. The following are the things that are to be kept in mind when it comes to renewal of a tenancy contract
- If the landlord wants the tenant to evict the property or if he wants to increase the rent than the previous rental contract, a 90 days period notice should be given to the tenant regarding the same prior the expiry of the contract.
- If the tenant wants to vacate the property, he should give a 90 days period notice to the landlord before the tenancy contract expires.
- If the tenant and landlord didn’t mutually agree upon the price change before renewal of the tenancy contract, a case can be filed against the landlord at the Rental Dispute Center.
- According to Article 25(2), the tenant can renew the contract according to his terms, but if the landlord has exceptions with the decision of the tenant, he can evict the tenant in the following conditions by providing a 12-month prior notice via notary or registered email to the tenant.
- The landlord can ask the tenant to evict the property if he wants to reconstruct the property or add any other extra modifications to the property.
- Renewal can also be rejected by the landlord if the property needs renovation or maintenance.
- Tenancy law allows the landlord to evict the tenant if the landlord or his immediate family member of first degree wants to occupy the property. This is allowed when the landlord shows proof that the family member does not have any other choice of stay.
- Sale of the property can also be considered as a reason for the landlord to evict the tenant. The landlord should provide an agreement with the broker or MOA as proof of sale.
A tenancy contract is one of the important concepts when it comes to renting a property in Dubai. Before approaching the tenancy contract, it should be made sure that the tenancy contract is compiled of RERA regulations. Also, keep in mind the terms and conditions that are mentioned in the rental agreement.