UAE Rental Laws: Pro-landlord, Neutral or Pro-tenant?

UAE's landlord and tenant laws are judged by the Global Property Guide to be Pro-Tenant between landlord and tenant. The system is designed to be fair — giving tenants security and landlords the right to reclaim or protect their property. But the process is rule-driven, which often gives tenants an edge if they know their rights and follow the procedures.

Rents: Can landlord and tenant freely agree rents in UAE?

Parties may freely agree on the initial rents, however the tenant is protected from rent increases during his or her tenancy. 

Navigating Dubai’s real estate scene isn’t always straightforward — whether you’re a tenant or a landlord. To help keep things fair and transparent, the Real Estate Regulatory Agency (RERA) has put a few systems in place. One of the most important tools they offer is the RERA Rent Calculator, which gives you a clear idea of what’s fair — and what’s not.

Rental rates in Dubai vary based on factors like location, property size, and overall demand. When it comes to payments, tenants usually have the flexibility to pay the rent either in one lump sum or split it into multiple installments — depending on the agreement with the landlord or broker.

It’s also good to keep in mind that some brokers may charge a commission, which can be up to 5% of the total rent amount.

Deposits

Prior to occupancy, the tenant is required to remit a security deposit equivalent to 5% of the annual rent. The same amount is usually refunded to the tenant upon termination of the contract.

An additional deposit of AED1,000 (US$272) to AED2,000 (US$545) must be paid to the electricity and water provider (DEWA). Some emirates also expect tenants to pay municipal tax on the leased property.

What rights do landlords and tenants have in
UAE, especially as to duration of contract, and eviction?

In the UAE, all lease agreements between landlords and tenants must be registered with the appropriate authority in each emirate. This step is essential, as registration is required to activate utility services like water, electricity, gas, and telecommunications for the rented property.

In Abu Dhabi, landlords are required to register tenancy contracts through the Tawtheeq system — the official tenancy register for the city. Once registered, tenants are charged a housing fee of 3% of their annual rent, spread out over 12 months and added to their monthly water and electricity bills.

In Dubai, lease agreements must be registered through Ejari, the Real Estate Regulatory Agency’s (RERA) online portal. Similar to Abu Dhabi, tenants in Dubai also pay a housing fee, which is 5% of the yearly rent, added to their monthly utility bills.

According to Dubai Law No. 43 of 2013, landlords can only increase rent based on how the current rent compares to the average market rate for similar properties in the area — something that can be checked using the RERA Rent Increase Calculator.

Under Article 25 of Law No. (26) of 2007, there are only specific circumstances in which a landlord in Dubai can evict a tenant before the tenancy contract ends. These include cases where the tenant fails to pay rent within 30 days of receiving a written notice from the landlord, or if the tenant sublets the property without prior approval. Eviction is also permitted if the tenant uses the property for illegal activities or allows others to do so, or if they cause serious damage that compromises the safety of the property. In addition, a landlord has the right to evict a tenant if they intend to demolish or significantly reconstruct the property.

How effective is the UAE legal system?

Disputes between tenants and landlords in the UAE can arise over issues like rent increases, maintenance responsibilities, or eviction notices. The first step in resolving any conflict is to try and communicate directly — ideally in writing — to keep a clear record of what was discussed or agreed upon. If that doesn’t work, it’s important to refer to Dubai’s tenancy laws under RERA, as many disputes stem from a lack of awareness about legal rights and obligations. If the issue still isn’t resolved, tenants or landlords can escalate the matter by filing a case with the Rental Dispute Settlement Centre (RDSC). To do so, they’ll need to provide a copy of the lease agreement, payment receipts, and any supporting evidence such as emails or official notices. Filing a case involves a fee equal to 3.5% of the annual rent, and most disputes are typically settled within 75 days.

Legislation

The “Law Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai No. 26 of 2007” known as the Tenancy Law came into effect on February 29, 2008. The law covers all rental properties in Dubai except for hotel establishments and properties provided by companies to its employees as free housing.

Then in early-2009, the “Decree No. 1 of 2009 Governing Rentals in the Emirate of Dubai” was issued to control rent increases for renewing rental contracts in 2009.

Brief history: Recent changes in UAE's landlord and tenant law

The UAE government introduced a rent cap of 15% in 2006, which was slashed to 7% in 2007. The rent cap was further reduced to 5% in 2008, in an effort to curb inflationary pressures.

In January 2009, Dubai’s Real Estate Regulating Agency (RERA) unveiled a new rental index to replace rent caps. Following this a new rental law was released, establishing the rental index as a benchmark for rent increases.

However, RERA has come under criticism because the new rent figures were much higher than current rental rates in the market. The rental index, compiled during mid-2008 (at the height of the property boom and before the fallout from the global financial crisis), gives an inflated view of rents in Dubai. The discrepancy caused uproar and confusion among tenants who were left watching their landlords hike their rents to unwarranted levels.

This prompted RERA to update the new rental index earlier than planned. The revised index is due to be released in April 2009. Those tenants who have not yet renewed their contracts are likely to hold on to their old contracts until the new index is released.