There is much ambiguity around the responses to these questions, and regrettably many tenants are victimised by their landlord’s arbitrary or unjust behaviour because they are uninformed of how the law governs their rights.

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This update attempts to explain the legal procedure around rent hikes and eviction notifications and to offer a comprehensive overview of both the landlords’ and renters’ rights.

It’s critical to draw attention to two crucial statutes for the purposes of this update:

The current Landlord and Tenant Law, which incorporates amendments to Law No. 26 of 2007 and Law No. 33 of 2008, is based on the original Landlord and Tenant Law, Law No. 26 of 2007 on the Organization of the Relationship between Lessors and Tenants in the Emirate of Dubai.

The Declaration of a Rent Freeze:

The Dubai Land Department (“DLD”) announced in January 2021 that a new rule might be implemented that would temporarily halt rental agreements for a period of three years, but no specifics regarding the effects were provided. Thrilled by this news, tenants anticipated that their present leases would “freeze” and, in their perplexity, neglected to follow the required and customary steps to negotiate new leases with their landlords. The Rental Dispute Committee had a lot of cases to decide as a result of the resulting confusion and disagreement.

Has a rental freeze ever taken place?

The original law from 2007 did explicitly allow for a tenant rent freeze. According to Article 9 of the 2007 law:

“Landlord and tenant must specify a rent value in the tenancy contract, and in all cases, it is prohibited to increase the rent or modify any lease terms until two full years have passed since the date the rental relationship began.”

The 2008 revisions, in contrast, did away with the rent freeze and gave landlords the option to raise rent after the first year of a tenancy (unlike other Emirates), so long as they gave tenants ninety (90) days’ notice.

While landlords are free to raise their rental yield after a year, the DLD regulates this rise, taking into account the market, similar rent yields, and a number of other criteria.

What conditions permit a landlord to raise the rent?

  1. Decree No. 43 of 2013 on the Determination of the Increase in Real Estate in the Emirate of Dubai was published by the Dubai Government. In essence, this brief decree gives landlords a maximum rate of rent increase based on the typical market price of comparable properties in a specific area. Tenants need to be aware of the following:
  2. No rent increase is allowed if the current rent is less than 10% below the median rental rate; a maximum of 5% increase is allowed if the current rent is between 11% and 20% below the median rental rate; a maximum of 10% increase is allowed if the current rent is between 21% and 30% below the median rental rate; a maximum of 15% increase is allowed if the current rent is between 31% and 40% below the median rental rate; and finally, a maximum of 20% increase is allowed.
  3. If the current rent is less than anything more than 40% of the typical market rental rate, a maximum 20% increase is allowed.
  4. If a tenant is unable to calculate their exact rent increase manually, they can either download the Dubai REST app to their smartphones or use the rent calculator on the DLD website. Any party has the right to take their disagreement with the landlord or tenant regarding a rent increase to the Rental Dispute Committee. In accordance with the Decree’s provisions, the RDC shall determine the allowable rent increase.

When is eviction by a landlord permitted?

In an effort to increase their rentals, some landlords have started to frequently try to evict their current tenants. In one unusual instance, a landlord even went so far as to issue an eviction notice just one day after a new tenancy agreement was signed.

Recently, it has become customary for tenants to receive their eviction notices via emails or WhatsApp messages. According to the 2008 Landlord and Tenant Law, a landlord must serve an eviction notice in person before a notary public or by registered mail if they want to evict a tenant. What’s more, the landlord must give justification for the eviction.

The Landlord and Tenant Law of 2008 specifies the circumstances under which landlords may evict their tenants. The 2008 Landlord and Tenant Law distinguishes between evicting a tenant who has a lease that is about to expire and evicting a tenant who has a lease that has already expired.

Eviction before the Lease’s termination:

The comprehensive list of nine grounds listed in the Landlord and Tenant Law allow the landlord to evict a tenant before the lease’s expiration. These are listed below:

  • If the tenant does not pay the rent even after being notified that it is due after 30 days; If the tenant sublets the property without the landlord’s permission;
  • if the rented property is utilised for unethical, immoral, or illicit activities;
  • If the leased space is a commercial space and it is vacant for either thirty days in a row or ninety days in a row within a calendar year;

The premises are used for purposes other than those for which they have been leased, or their use violates Dubai’s planning and building regulations; The premises are in urgent need of repair, as shown and proven by a technical report approved by Dubai Municipality; In the event that the tenant’s actions result in changes to the premises that endanger the safety of the premises, or cause damage to the premises as a result of an intentional or grossly negligent act;

These clauses give landlords the right to take legal action if a tenant violates their lease obligations and does not make good after being given notice.

Eviction upon Lease Expiration:

Landlords are limited to specific guidelines in order to be able to evict their tenant, even after the tenant’s lease has expired.

First, a notice of eviction that specifies the reason(s) for eviction must be sent via registered mail or notarized mail. More crucially, in order to properly evict a tenant, the landlord must give the tenant twelve (12) months’ notice before the date of eviction.

One may only evict a tenant for the following reasons:

  1. Providing that the landlord received the necessary approvals, the landlord intends to demolish the property in order to reconstruct it or add additional buildings, which will prevent the tenant from enjoying the benefits of the leased premises;
  2. If the condition of the leased space need renovation or major maintenance, and such work cannot be done while the tenant is using the space, and provided a technical report demonstrating the need for refurbishment is acquired and approved by Dubai Municipality;
  3. If the landlord does not own any other similar suitable property, they wish to occupy the leased premises for their own use or for the use of any member of their family up to the first degree.
  4. The leased property is up for sale by the landlord.

Read also: Notarization of Eviction Notice to A Tenant

Conclusion:

In order to equitably balance the power between the parties, the rules in the Emirate of Dubai explicitly define the rights of landlords and tenants. It is evident that tenants have the right not to be evicted from their properties unless there is a compelling legal reason, and that landlords have the right to raise rent through a regulated mechanism.

In order to avoid paying additional fees by submitting their issue to the RDC, it is advised that both landlords and tenants become familiar with Law No. 33 of 2008 (the Landlord and Tenant Law). It is always better to obtain the advice and help of a legal expert if either party is unsure about a specific legal provision.

Read also: Rental disputes between a tenant and landlord