Things you need to know about tenancy contract Dubai

Living in Dubai could sound a little bit fuss for any expatriate expecting to move to Dubai soon or for anyone who didn’t go through the experience of renting a property in Dubai before. Dubai is packed with a lot and a lot of options to choose from. The real estate market there is designed to suit all types of customers.

Whatever customers are looking for, they can definitely find it in Dubai. Looking for Villas, apartments, penthouses, and studios of all sizes. Either looking for living in a high rise lofty residential tower that is full with amenities, or a separate villa, or a modest mid height building in a closed residential community, they are all available for rent in Dubai.

Moreover, the city is still growing, hitting its boundaries and setting new development projects. Major real estate developers from inside and outside UAE are engaged in real estate projects in Dubai aiming to take part in its stimulant and booming market.  Renting a property in Dubai, either commercial or residential, was organized by Dubai authority. It is legalized with definite legal frames to make the whole process clear for both sides, tenants and property holders. It’s way easier than before.

In this article, we will discuss an integral part in the renting process which is the tenancy contract. The document setting the rights and duties of each part and making everything clear before undergoing the tenancy term whatever its duration.

The beginning of the standard contract

In 2017, Dubai Land and Department, the public authority entitled of supervising the local real estate market in Dubai, issued a standard tenancy contract for all short-term tenancies in Dubai. The contract is set to be active in all localities and circles of the emirate except in the Dubai Financial International Center. The new contract is an obvious improvement on the old contract, it is seen by all real estate followers and property men as a step on the right path towards securing a safe and stable market in Dubai. It’s better for tenants to review the lease agreement carefully before signing it. Tenants should read all terms and feel comfortable with each and every clause. It’s worth mentioning that the new contract was designed to be applicable on all types of properties including residential, commercial, and industrial properties.

tenancy contract

The main changes on the contract

The introduction of the new tenancy contract was mainly to address the various formats of contracts used in Dubai and unify them into only one format. The old formats had clauses and terms which contradicted with Dubai Tenancy Law, all these clauses were removed in the new unified tenancy contract. One of the main modifications in the new contract is a new statement stating that the contract is subject to the Tenancy Law. The contract grants both agreeing sides to add new additional clauses, but under the condition of not conflicting with the Tenancy Law and other applicable property laws.

Tenant’s rights and obligations

According to the contract, the tenant has the right to have the property in a good and suitable condition and to fully use it. The tenant is not entitled, according to law, to pay for the property’s maintenance or to repair any damage that could hamper the tenant from using the property. Also, the tenant has the right to benefit from services and facilities related to the property and get his security deposit by ending his agreement term. If the landlord withholds his security deposit, the tenant should file a complaint to the rent dispute committee, which in turn will investigate the problem and come up with a decision.

As for obligations, the tenant must pay the rent on time, any delay for any reason like travel must be noticed from before. The tenant must keep the property as is, he or she can’t make any changes to the property without getting permission from the property owner. Tenants are also required to pay a security deposit. By the expiry of the rental contract, the tenant must submit the property in the same condition in which he or she received, except for damages beyond the tenant’s control like natural disasters for instance.

Landlords’ responsibilities

According to the new contract and in consistence with article 16 of Tenancy Law, landlords are responsible for the maintenance works and the repairs of any damages or defects in the property. The contract gives both parties the right to have a different agreement in this regard as there is no standard provision to deal with both parties. In case of any needed maintenance works, it is important for both parties to include a clear list of the items that need maintenance and define which ones will be the landlord’s responsibility and which ones will be the tenant’s responsibility.

In order to avoid any conflict between both parties, it is really important to make everything clearly recorded to limit any potential disputes. The contract will act as a reference that guarantees both parties rights. The new tenancy contract facilitated the renting process to a far extent and made a firm framework that organizes the relation between property owners and tenants. It had a great role in energizing Dubai’s rental market and limited disputes between both parties in a really evident and remarkable way. More legal organizations are awaited in the near future.

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