Dubai is the current investment destination and property prices have considerably appreciated. The influx of business people has meant an increased demand in rental houses and there are some useful tips that prospective tenants must understand before renting a place in Dubai. Regulations have been made especially on tenancy and it is known that these laws adequately protect both the landlord and the tenant.
What laws regulate the landlord and the tenant?
There are some basic laws governing the relationship between the property owner and the tenant. The “law number 26 of 2007” regulates this relationship by defining various terms and conditions involved in tenancy. Among the issues contained in this law is the tenancy contract and what constitutes its validity.
What Is The Role Of The Real Estate Regulatory Authority?
The real estate regulatory authority governs and regulates the property sector in the UAE. The authority provides information to potential investors, tenants and property owners on various issues regarding property in Dubai. “The Law Number 33” contains amendments to the law number 26 and is currently used in regulating the real estate sector. The “decree number 2” of the year 2011 regulates the procedures for rental increases, which is based on the rent index of the United Arab Emirates.
What Does the Standard Tenancy Contract State?
This document dictates the terms of relation between the property owner and tenant. It states the reasons of the tenancy, period of contract and even the ownership details. It is crucial for the tenant to read the finer details of the contract to avoid confusion by some landlords such as on issues of renewal.
Determination of the Rent Value
The value of rent is determined under article 9 of the tenancy law. The value of rent must be specified in the contract, and if not, then the value is pegged as per similar rents of similar premises. The RERA determines what constitutes similar premises, and specifies the rent increase percentage. This is done after considerations of the prevailing economic conditions and various other factors.
Renewal and Amendments to Terms and Conditions
Article 13 guides the renewal terms and conditions of the tenancy contract. The property owner and the tenant may change these terms when the contract expires. If there is a disagreement between the two parties, the committee may rule on a fair rent value depending on the prevailing circumstances.
Property Maintenance Terms
The property owner does the maintenance of the property. It shall be done as to benefit the tenant unless the two have agreed otherwise on the maintenance of the property. This is stipulated under article 16 of the tenancy law. Contracts indicating that the tenant pays for maintenance must be handled with care because maintenance fees quickly add up to multiple repairs and get costly to the tenant.
Eviction at Contract Expiry
The tenant may be evicted before contract expiry due to nonpayment of the rent value or even subletting of the property without the property owners consent.
The value of property for rent in Dubai continues to appreciate. Rentals have gained popularity due to the increased number of people going to the country to do business. The real estate regulatory authority controls the property development in the UAE and tenancy in Dubai is regulated by Law number 33 of 2008.
This article is posted by Mr. Chitrang Vyas
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