Tenancy contract in Dubai and the UAE
Learn why tenancy contracts are essential for tenants and landlords in the UAE, and about the registration, renewal, and cancellation of these contracts. A tenancy contract is a legally binding rental agreement that allows the tenant to use a property for a specific purpose over a certain period of time, in return for a specific consideration (aka rent). This document outlines the relationship between the landlord and the tenant. These contracts are an integral part of regulating the property rental market as they help prevent misunderstandings and provide clarity in the face of disputes. The tenancy contract should cover the terms of the lease (including governing laws), as well as the obligations of both the landlord and the tenant. It should be comprehensive and allow no room for uncertainty.
Tenancy contract form in Dubai and the UAE
The tenancy contract form must contain the following information:
- Landlord’s (or property owner’s) information and contact
- Tenant’s information and contact
- Property usage, type, and size
- Property location - address, building name, property plot number
- Dubai Electricity and Water Authority (DEWA) premise number
- Contract period / duration of lease
- Rental price and payment method
- Security deposit amount
- Contract value
- Terms and conditions
- Additional addendum for special conditions (eg. the payment of services, situations requiring a No Objection Certificate (NOC), the extent of property maintenance by tenant)
The contract must be signed (as applicable) by the landlord, the tenant, the legal representative of the landlord with a Power of Attorney, and the licensed property management company. This must take place in the presence of a notary official. Below is the first page of the Unified Tenancy Contract from the Dubai Land Department (DLD). This form provides the standard format for tenancy contracts in Dubai and can be used by tenants and landlords for writing up their tenancy contract.
Tenancy contract registration and fees in the UAE
All tenancy contracts and amendments (if any) must be registered by the regulating authority of the Emirate where the property is located. A tenancy contract is only legally binding once it is registered, meaning that the government authorities will only intervene in the case of contract breaches if it is registered. Registration is necessary to connect utility services such as water, electricity, gas, and telecommunications services. It also ensures that the property isn’t rented to more than one tenant. Each Emirate in the UAE has its own body that registers and regulates tenancy contracts.
Dubai tenancy contract
The Real Estate Regulatory Agency (RERA), a regulatory arm of the Dubai Land Department (DLD), sets the requirements for the Dubai real estate market. RERA is in charge of registering and regulating lease agreements through the Ejari system. After your contract is registered, tenants must pay a Dubai Municipality housing fee of 5% of the yearly rent, added to monthly electricity and water bills. The tenant often ends up completing Ejari registration on their own in Dubai.
Abu Dhabi tenancy contract
In Abu Dhabi, the tenancy contract must be registered in the Tawtheeq system. This registration has a housing fee of 3% of the annual rent, added to the monthly water and electricity bill to be paid equally across 12 months. The landlord or property manager must complete Tawtheeq registration.
Sharjah municipality tenancy contract
The tenancy contract must be registered with the Rental Regulation Department in Sharjah. The Sharjah municipality charges 4% of the annual rent. Lease attestation (contract registration) and renewal of tenancy contracts can now be completed online.
Ajman tenancy contract
In Ajman, the tenancy contract must be registered in the Tasdeeq system. The municipality fee is 2% of the lease value, with a minimum fee of AED 400. The landlord is responsible for completing Tasdeeq registration.