RERA Rules For Tenants In Dubai – A Complete Guide

If you are living in Dubai or considering moving to Dubai, you must have heard about RERA and its rulеs and regulations regarding rеnting property. But what еxactly is RERA, and how do its rules govеrn tеnants in Dubai?

As a tеnant, it’s crucial to understand your rights and rеsponsibilitiеs undеr thе Dubai rеntal laws. This guidе covеrs еvеrything you nееd to know about RERA Rulеs for tеnants in Dubai. So kееp reading to ensure you don’t violatе any rеgulations unknowingly.

What Is RERA Dubai?

RERA, or Real Estate Regulatory Agency, is the regulatory arm of the Dubai Land Department (DLD). It formulates, regulates, implements, and oversees regulations regarding Dubai’s real property zone.

Established in 2007 under Law No. 16, RERA pursues to organize operations, guard stakeholders’ rights, ensure transparency, and entice extra investments into Dubai’s Real Estate Property Market .

As part of its objectives, RERA oversees matters like registration of agents and real property organizations, builders’ escrow bills, broker acceptance as true with accounts, guidelines for proprietors’ associations, and tenancy contracts.

Scope Of RERA Tenancy Laws In Dubai

RERA’s rental laws and regulations in Dubai govern aspects like:

• Terms of the lease contract
• Rent amount and increases
• Tenant and landlord rights and responsibilities
• Repairs and maintenance
• Subletting, early termination, eviction
• Settling rental disputes

These regulations are covered primarily under:

• Law No. 26 of 2007 – Regulating relationship between landlords and tenants
• Law No. 33 of 2008 – Amending Law No. 26 of 2007
• Decree No. (26) of 2013 – This law established the Rent Disputes Settlement Centre (RDSC), which handles all types of rental disputes in Dubai. Determining rent increases in Dubai So as a tenant looking to rent or renting property in Dubai, you need to know the relevant laws and amendments we’ve covered in this guide.

Key Tenant’s Rights Under RERA Dubai

If you wish to rent an apartment or villa in Dubai, you must know your fundamental rights. Under the RERA rental law, these include:

1: Right To A Written Tenancy Contract

As per Law No. 26 of 2007 all lease agreements must be documented as formal tenancy contracts signed by both parties.

These RERA contracts act as binding legal agreements, with details like:

• Property details
• Owner’s name
• Tenure
• Rent amount,
• Payment Frequency The contract also clearly outlines the tenant and landlord’s duties and liabilities during the rental term.

2: Right To Register Rental Contract

Under Article 4 of Law No. 33 of 2008 landlords or property agents must register all tenancy contracts on the Ejari portal. This registration happens through the DLD website.

As a tenant, you can also register the lease contract on Ejari if the landlord fails to do so.

3: Protection Against Unfair Eviction

According to the RERA eviction rules, a landlord cannot evict you from rented premises unfairly or without proper reason and due notice.

There is a defined eviction process, where a landlord must first issue notices for non-payment, contract breaches, property misuse, etc., before initiating eviction through the RERA Tribunal.

So, your rights as a tenant are well-protected under the rental laws in Dubai. You also have the right to contest any evacuation notice justifiably.

4: Right To Renew Or Modify Contract

The tenant enjoys the first right to renew the lease contract on updated terms or continue renting under existing terms. This renewal application must happen 90 days before the ongoing rental contract expires.

If there are disputes over renewal terms and conditions, the RERA Tribunal will mediate and issue binding decisions.

5: Protection Against Illegal Lockouts Or Utility Disconnection By Landlord

Under Article 34 of Law No. 26 of 2007, the landlord cannot resort to unfair practices like locking you out or disconnecting electricity, water, or AC during an ongoing lease term.

Such attempts cause grave discomfort and are deemed illegal, so you can file police complaints and seek damages through the Tribunal.

6: Right To Lodge Complaints And Dispute Resolution

As an aggrieved tenant in Dubai, you enjoy legal rights to raise complaints against your landlord With RERA Dubai , Dubai Municipality, Dubai Courts, Rent Committee, or the special Rent Disputes Settlement Centre.

These bodies investigate matters diligently and enforce appropriate judgments or penalties based on the rental regulations.

Key Obligations Of Tenants In Dubai Under RERA

While RERA laws cover your fundamental rights, they also outline critical obligations for Dubai tenants, like

1: Pay Rent And Other Charges On Time

Under Article 19 of Law No. 26 of 2007, the tenant must pay rent and other utility or service bills on their due dates.

Failing to pay the rent within 30 days of the landlord’s written notice gives grounds for tenant eviction in Dubai. So clear your dues on time.

2: Use Property for Approved Purposes Only

According to your lease agreement, each rented unit has designated residential, commercial, or industrial usage. As per Article 25, using it differently or running illegal activities can lead to eviction.

So, ensure your property usage aligns with the contracted terms to avoid disputes or vacating notices.

3: Obtain Written Approval for Alterations or Subletting

As a tenant, you cannot make any structural/layout changes or sublet the property without express consent, as mentioned under Articles 19 and 24. Doing so again constitutes a breach of contract and may warrant eviction.

4: Avoid Property Misuse Or Damage

It is vital not to damage the property, whether wilfully or through negligence. This safeguards apartment/villa safety. Accidents can happen. Still, gross negligence that causes structural impact will invite penalties or vacate notices per Article 25.

5: Maintain Property Well

Under Article 19, tenants must maintain the rented unit reasonably well as they would their own homes. This involves keeping it clean, avoiding damage, reporting issues promptly etc.

Wear and tear from regular usage is acceptable, but any harm due to ill-maintenance will lead to deductions from the security deposit.

6: Return Property In Good Condition Post-Lease

Article 21 states that tenants must return the property in the same condition as initially rented, except for normal ageing. Any excessive damage or structural changes must be resolved before vacating the property.

7: Provide All Fees To DLD

As per Article (22) states that unless the Lease Contract states otherwise, the Tenant must pay all fees and taxes due to Government entities and departments for the use of the Real Property and any fees or taxes prescribed for any sub-lease.

8: Not Able To Remove Any Leasehold Improvement

Under Article (23), the Tenant shall not remove any leasehold improvements made by the Tenant except those expressly permitted to be removed by the Landlord in writing.

Failing to reinstate modifications or damages before moving out gives grounds for heavy penalties or legal complaints against you.

RERA Rules For Tenancy Contract, Renewal And Termination

RERA has framed adequate policies regarding preparing lease agreements, renewing ongoing contracts and early termination.

Tenancy Contract

• As outlined before, written agreements signed by both parties are mandatory for any property rentals in Dubai.
• These RERA contracts must be registered through Ejari, or penalties can apply. Landlords usually undertake Ejari registrations.
• Critical elements like property details, rent, lease period, purpose, landlord and tenant names/contact information should be unambiguous.
• Vague, incomplete contracts giving room for disputes will be deemed invalid by law.

Tenancy Renewal

• Tenants enjoy the first right to renew existing contracts on existing or updated terms as suitable.
• As per Articles 13 and 14, landlords must notify tenants about renewals at least 90 days before expiry. Equally, tenants must convey decisions 60 days before expiry.
• Failing mutual consensus, the Tribunal decides fair rents or terms based on comparable properties.

Early Contract Termination

Articles 6 and 7 assert that valid Dubai lease contracts cannot be unilaterally terminated without mutual consent, barring a few exceptions. But if you face pressing circumstances requiring premature contract cancellations, clauses may permit. Just ensure proper notices are served to landlords depending on agreed notice periods. If clauses don’t cover early termination, you may mutually discuss exit options with your landlord. Else, the contract remains binding. So in a nutshell, the RERA Tenancy contract, renewal, and termination policies reasonably protect stakeholders’ interests.

RERA Rental Increase Rules And Calculator

Understanding the RERA guidelines on rent increases in Dubai is critical before signing contracts, especially since the cost of living in Dubai is quite high.

As per RERA rental law, there are caps on how much landlords can increase rents while renewing contracts. This safeguards tenants against unfair hikes.

Rental Increase Regulations In Dubai

Article 9 of Law (26) of 2007 requires landlords and tenants to specify a mutually acceptable rent value within their tenancy contract. This rent amount cannot be increased before the end of a two-year tenure from the original contract date.

As per Decree No. 43 of 2013, these Dubai rental increase regulations are:

• No hike is permitted upon renewal if the existing rent is up to 10% below the average for similar units.
• If your rent is 11-20% below the comparable average, only up to 5% increases are allowed.
• For rentals 21-30% below average, 10% is the maximum permissible hike.
• If ongoing rentals are 31-40% under the median for identical units, 15% increases can apply.
• Where current rents trail averages by over 40%, up to 20% raises are approved upon renewals.

RERA Rent Calculator

You can check the RERA rent calculator to determine the maximum hike percentage applicable for your rental renewal.

This calculator available on DLD’s website considers factors like:

• Your property type
• Location
• Comparable average rents
• Existing rental rates Based on these elements, the system reveals the ceiling raise percentages that may apply for your lease renewal.

So, the RERA rental index and calculator offer convenient ways to verify permissible increases. Ensure landlords don’t arbitrarily exceed approved raise limits without proper justification.

Tenant Deposit Guidelines Under RERA Dubai

Rental security deposits are governed under RERA’s Article 20 of Law No. 26 of 2007. Salient aspects include:

Deposit Amounts

No prescribed limits exist on security deposit amounts in Dubai. These are mutually agreed between the involved parties. Typically, deposits average 5-10% of annual rentals. However, higher amounts may be justified for costlier properties or tenants deemed higher risk.

Deposit Usage Rights

Being an interest-free safeguard for landlords, security deposits can be utilised to cover:

• Any unpaid utility bills or municipal fees left by tenants
• Repair costs for damages beyond wear and tear
• Rent defaults to the extent defined in the contract
• Other financial breaches like premature rent cheque bouncing Note that landlords cannot arbitrarily deduct deposits for trivial reasons. A proper basis for applying the lease terms should justify withdrawals.

Deposit Refunds

Under Article 20, landlords must refund deposits wholly or the remaining portion after any justified deductions after the lease expiration. Tenants also have the right to dispute unfair deductions before RERA tribunals and recover eligible amounts.

So as long as you utilize the property rightly without major defaults or damages, your deposit remains protected under RERA’s regulations.

RERA Rules For Dubai Tenants: Key Takeaways

As a tenant in Dubai, you must:

• Review draft contracts carefully before signing
• Ensure the contract meets RERA requirements
• Pay rent on time; non-payment can lead to eviction
• Register the contract through Ejari within 15 days
• Seek the owner’s consent before subletting
• Use premises only for agreed purpose
• Avoid property damage through negligence
• Notify the landlord in advance if not renew
• Return possession in good state after expiry

And if you face any disputes as a tenant:

• Attempt amicable resolution first
• If unresolved, file RERA complaint online
• Submit required documents as evidence
• Seek quick interim relief if needed
• Hire property lawyer for complex cases

Conclusion

We hope this guide gave you a good overview of RERA regulations applicable to Dubai tenants. Knowing your rights and responsibilities is key to a smooth rental experience. Check the DLD and RERA websites for official up-to-date information.