Creating a Tenancy Contract in Dubai


August 24, 2018

It’s your duty as a landlord to make sure that your tenant relationship runs smooth. Both parties need to know their rights and responsibilities. A well-crafted tenancy contract will help do that. Regardless of being a short-term or long-term rental period, it should cover all the necessary elements. Since it’s a legally binding document, it will serve as a reference point that you can go back to in the future.

At Blueground, we have a dedicated team that reviews contracts to ensure that all necessary parts have been included. So, if you prefer an experienced company to take the reigns, Blueground is your best bet.

 

A standard rental agreement

woman signing papers at desk

As you construct your tenancy contract, a good place to start is Ejari. It is a RERA initiative that regulates lease and rental agreements in Dubai. You can find a sample contract form to use as a guide. If you are registering a new tenancy contract, download it for free. Edit it and add any clauses that are relevant to your specific property.

The full name and signature of the main tenant

A signed rental agreement ensures rent is paid on time. The tenant is legally responsible to follow through. If they understand their responsibilities, they will have the incentive to self-regulate. If a term is violated, there will be an eviction.

Well established limits on tenancy

Establish limits for how long guests can stay. The contract should clearly outline who will occupy the apartment and whether subletting is permitted. By including this, you will have the authority to evict tenants with unvetted long-term guests. For example, relatives who end up moving in without your permission.

Length and terms of the tenancy

The document should state the length of rental time and how payment will happen. Also, any additional clauses about whether the tenancy will automatically renew or not.

The tenancy contract explains how and when the rent will be paid. It's standard procedure to have post-dated checks in Dubai. You should include alternative ways to pay the rent (bank transfer, credit card, PayPal, etc.). Mention if you offer a grace period and if any surcharges will result if a check bounces.

 

Deposits and fees

A common source of contention between landlords and tenants comes from the security deposit. To avoid any confusion and potential legal procedures, your tenancy contract should be very clear.

tenancy contract dubai handing over a debit card for payment

The document should specify the following:

  • Amount of the security deposit (comply with any RERA Laws)
  • The use of the deposit (for example, property repairs)
  • Deposit return information

 

Repairs and maintenance

State your maintenance obligations. Mention the tenant’s responsibilities as well. Landlords are expected to fix any issues in the unit.

The contract should state that it's the tenant's responsibility to keep the unit clean and in good condition. They will agree to pay for any damage caused by abuse or neglect. The tenant must alert the landlord about any defective or dangerous things they notice. Tenants must ask permission to do any major alteration or repairs. For example, knocking down a wall, installing a dishwasher, or painting.

 

Regarding illegal or disruptive activities

Want to avoid tenant troubles, property damage, and exposure to lawsuits? Include a clause prohibiting illegal behavior. Address disruptive behavior such as causing excessive noise. If there is a pool or a gym on the premises, clearly specify on the tenancy contract the hours of use.

 

Pets

a small dog and cat are laying down on a bed while covered by a blanket

Whether you allow pets or not, be sure that your tenancy agreement is clear on the subject. If you allow pets, specify special restrictions, such as size, number, and type. Explain how you expect the property to remain clean. Property owners who choose to allow pets in their Blueground apartment can reach an underserved market of pet owners in Dubai.

 

Other restrictions and responsibilities

Be sure that your rental agreement complies with all relevant RERA laws of Dubai. This includes health and safety codes, occupancy rules, anti-discrimination laws, and rent control. Normally, the landlord and the tenant have to pay for their Ejari registration. It's standard procedure for landlords in Dubai to shift responsibility to the tenants. That is because tenants need their registration in order to obtain any important documents and utilities. Be sure to mention in your contract if it's the tenant's responsibility to pay for it.

You should include regulations about the use of common areas and tenant/visitor parking. Also, any other legal restrictions such as if a tenant can run a home business or not, and which kind. Be sure to clearly establish any fees or penalties the tenant will incur for ending the lease agreement early. Especially, since there are no specific RERA laws covering it.


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