A tenant's guide to sub-leasing in Dubai 2024

Are you a tenant in Dubai looking to make some extra income? Subleasing your property can be lucrative. Still, it is important to understand the legal framework and follow the regulations set out by the Dubai Land Department. Our blog post will provide a step-by-step guide to subleasing in Dubai in 2024. But let's first understand what subleasing is.

What is Sub-leasing?

There are two different meanings of sub-leasing:

First, when an agency such as Betterhomes obtains the master lease for an entire building and then sub-leases the apartments to tenants, every tenant in the building owns a sub-lease contract with Betterhomes.

The second type, which this blog is concerned with, is when an existing tenant subleases or rents the entire or part of a rental property to a third party at any point during the duration of the contract.

Sub-leasing Law in Dubai

According to Article 24 of Law No.26 of 2007, unless otherwise specified in the tenancy agreement, the tenant must gain written permission from the landlord before sub-leasing the property.

Further, Article 25 states that failing to obtain written permission from a landlord before subleasing a property is a ground for eviction. In such a case, the subtenant is liable for eviction, and the tenant is responsible for compensating the subtenant.

To sum it up, tenants are not permitted to sub-let a property without the landlord's consent unless it is specifically provided for in the tenancy agreement. If you sub-let a property without obtaining the landlord's permission, they have the legal right to evict you as the tenant—along with your sub-tenants—from the property, regardless of the expiration date of your contract. Also, your sub-tenant can pursue a compensation claim against you.

The Legal Framework for Sub-leasing in Dubai

Sub-leasing can help a tenant earn extra income, but the tenant must adhere to the legal framework to ensure a smooth relationship with the sub-tenant.

Before subleasing the property, a tenant must obtain written permission from the landlord. The permission should clearly outline the terms and conditions of the sublease. Here are some essential elements to include in the sublease agreement:

Sublease Term: Specify the start and end dates of the sublease. It must align with the tenancy agreement and should not exceed its duration.

Rent Amount and Due Dates: Outline the monthly rent amount agreed upon between the tenant and the subtenant. Specify the due date for rent payments and any applicable late fees or penalties.

Security Deposit: It is advisable to collect a security deposit from the subtenant to cover any potential property damage or unpaid rent. Clearly state the amount of the security deposit and the conditions for its return at the end of the sublease.

Responsibilities of Both Parties: Detail the responsibilities of both the sublessor and the subtenant, such as maintenance obligations, utility payments, and any restrictions or rules regarding the property.

Additional Terms: Any additional terms that the tenant and the subtenant agree upon, such as subletting restrictions, guest policies, and pet regulations.

A written consent protects tenants from potential disputes and ensures compliance with the tenancy contract.

A tenant must also seek the landlord's permission if he wants to put up partitions in the unit. They will need to follow the rules set by the Dubai Municipality for building partitions, such as being well-lit, having a source of natural light, and complying with all safety requirements. Villas and apartments have limits on how many people can live in them. For example, only four bachelors can share one-bedroom apartments in Dubai. Inspectors regularly check to make sure these rules are followed and to prevent overcrowding.

In a legal sublease, a subtenant has the same rights as the tenant. For instance, if a landlord raises the rent, he must notify his subtenant 90 days before the increase takes effect. Subtenants also have to abide by eviction laws just as tenants do.

Ending the Sublease

Before ending the lease, the tenant must provide the subtenant with a written termination notice within the timeframe stipulated in the sublease contract. Subtenants seeking early lease termination must obtain consent from the tenant, provided that all rental payments are up to date and the property remains free of any damages.

Upon reaching the mutually agreed-upon end date, the subtenant must vacate the premises and return all keys to the tenant. It is strongly recommended that a joint inspection of the property be performed to compare the present condition with its initial condition at the beginning of your sublease. Once the subtenant has adhered to their responsibilities and the property has no damages, as stated in the sublease agreement, the tenant is legally obligated to return the security deposit immediately.

Tips for Successful Subleasing in Dubai

A tenant can increase chances of a successful subleasing experience by considering these valuable tips:

• Select a reliable and responsible subtenant who will take good care of the property. Conduct thorough background checks and verify employment or income sources to ensure they can meet the rental payments.
• Subletting to a friend or family member can be a good idea if you know someone who needs a place to live and you trust them.
• Maintain open communication with the sub-tenant and ensure that both parties are on the same page regarding rent payments, property maintenance, and other relevant issues.
• Keep an eye on the local real estate market to understand rental trends and ensure that the rent you charge for subleasing is competitive.

Conclusion

Subleasing in Dubai offers tenants an opportunity to earn extra income and make the most of their rental property. However, it is crucial to navigate the subleasing process carefully to ensure compliance with Dubai's legal framework and maintain a positive relationship with both the landlord and subtenant. Subleasing, when done correctly, can be a win-win situation, providing flexible housing solutions and financial benefits for all parties involved.