Understanding the Lease Agreement in Dubai: A Tenant Guide in 2024

For rental properties in Dubai, one of the most important parts is the tenancy contract, which regulates the rental property market. As a landlord or tenant in Dubai, it is your responsibility to understand the rental contract, duties, and rights to avoid potential fallouts, errors, and ambiguities. In Dubai, the rental contract between landlord and tenant is governed by DLD regulations, Law No. 26 of 2007, also known as Dubai Rental Law. This law highlights the responsibilities and rights of landlords and tenants, and it is important to read and comprehend the agreement carefully before signing it. So, we have compiled this tenant guide to help you easily understand a tenant lease agreement. 

What is the Tenancy Lease Agreement in Dubai?

In a tenancy or rental agreement, the tenant and landlord are legally bound by a contract allowing the tenant to use the property for a specified time and purpose. The lease agreement mentions all the terms, conditions, and requirements on which both parties agreed. A tenancy lease agreement helps you avoid misunderstandings and potential disputes that may arise in the future. 

Landlords and tenants can download the rental contract from the official DLD website and the Dubai REST App. This lease agreement is editable and available in English and Arabic. Both parties have the authority to add any specific clauses they want to include in their tenancy lease agreement. Here are the aspects included in the Dubai rental agreement:

• Contract terms and conditions
• Ejari registration
• Governing laws
• Duties of the landlord
• Duties of the tenant

Ejari registration and other associated costs are included as additional costs of renting in Dubai. So make sure you are aware of them before entering into a rental agreement.

Important Tenancy Lease Contract Clauses

Even though landlords and tenants are free to add any specific clause they want in the rental agreement, certain mandatory tenancy lease clauses are already included as part of the agreement.

Attach an addendum to the contract

Both the landlord and tenant must attach an addendum to the rental agreement. The addendum must elaborate on all the terms and conditions included in the tenancy agreement. The things that must be explained in the addendum but are not limited to are given below.

• Who pays for what services?
• To what extent can tenants carry out maintenance?
• What instances require a NOC from the landlord?

Terminating the Tenancy Contract

The rental contract can only be broken or terminated when both parties consent. It means when the contract is over, it will be renewed automatically for the same duration or at least 1 year if the landlord has no objections or disputes with the tenant living in the property. One can only break the contract in the middle if the other party agrees.

90-day prior notice

If the landlord does not wish to renew the contract or if the tenant wants to make changes to the existing contract, it must be done through a 90-day notice, which can be sent to the registered email of the other party.

What happens when the landlord or the tenant dies?

If the landlord or a tenant dies, it does not affect the rental agreement. Instead, the contract will be transferred to the deceased's heir. If the heir wants to terminate the tenancy contract, it must be communicated to the other party within 30 days. 

What if the property is transferred to a new owner?

If the property is transferred to the new owner before the end of the rental agreement, the tenant has the right to live on the property until the contract expires. Even though it is not legally necessary to change the tenancy contract with the new owner, doing so and updating the details will help you avoid any potential problems or disputes in the future.

Details Included in a Dubai Tenancy Contract

The Ejari system has a standard format for rental agreements, which requires the following details of the tenants and landlords to be included in the tenancy contract:. 

• Names and contact details of the landlord and the tenant
• Property address, location, building name, and size
• Property usage
• Contract period
• The DEWA premise number
• The property plot number
• The method of payment
• The signing date of the contract
• Agreed rent amount
• Security deposit amount

The above details are compulsory in the contract, but both parties can also explain any additional clauses in the addendum that they have agreed on.

Documents Required for a Rental Contract in Dubai

The following documents are required for a tenancy contract in Dubai:.

• Emirates ID
• Copy of passport (landlord and tenant)
• Copy of a valid residence visa
• A check for a security deposit
• A check for the agency fee (if needed)

Who Needs to Sign the Tenancy Contract in Dubai?

After the tenancy contract has been drafted, every relevant party must sign the agreement before a witness to make it valid. According to the DLD, the following parties are the official signatories for rental contracts in Dubai:.

• The landlord
• The tenant
• The legal representative of the landlord with a power of attorney
• Licensed property management company

It is important for tenants in Dubai to understand these points within the lease agreement. Looking for legal advice or clarification from the landlord before signing any lease is a crucial step to ensuring a transparent and mutually beneficial tenancy experience. So contact us today and let us take care of your tenancy contract with ease.