The Dubai Rental Disputes Center, the judicial arm of Land Department, reported that the condition of the real estate property is one of the most important factors determining the rent amount in the Emirate of Dubai. Briefing the daily “Emarat Al-Youm”, the RDC elucidated that the law regulating the relationship between the landlord and tenant, has put in place "Rent Index", as a key criterion, it, nevertheless, allowed the use of four other criteria: "The condition of real estate property, the rental value prevailing in the area, the economic situation of the area in which the property is situated, and any updated legislation on rent.”
Tenancy Contract
HH Judge Abdulqader Mousa, Chairman of Rental Disputes Center, stated, "According to Article (4) of Law No. (26) of 2007, on Regulating the Relationship between landlords and tenants in the Emirate of Dubai, the contractual relationship between landlord and tenant will be regulated by a written lease contract signed by both parties and detailing, in a manner allowing no room for uncertainty, a description of the leased real estate property, the purpose of the lease contract, the name of the owner, the number and type of the land, and the area where the real estate property is located. It will also determine the term of the lease contract, the rent, and payment method.”
Rental Determinants
“Article (9) of Law No. (33) of 2008, amending certain provisions of Law No. (26) of 2007, on regulating relationship between landlords and tenants in the Emirate of Dubai, stipulates that rent or rental value shall depend on a number of factors, including the economic condition of the area wherein the real estate property is situated, the condition of the real estate in terms of its services rendered, along with the prevailing rent in the area, and in accordance with any applicable legislation in the Emirate concerning real estate property rent”, the RDC Chairman added.
"The public, Judge Mouse said, has been obsessed with the rent index being the only criterion determining the rent, but the law regulating the rental relationship has set the index as a key criterion and allowed the use of the other four criteria discussed here."
Right to lodge a grievance
He asserted that the tenant was entitled to object the output given to him by “Rent Index” upon renewal of the contract, and to demand a reduction in rental value without being conformed to the rent index.
The RDC Chairman pointed out that those who wished to use the criteria could initiate a lawsuit and set out the standard on which they could base their requests to reduce the rent, including the condition of real estate, whether or not it was different in terms of services, quality and the novelty of construction from the rest of the buildings in the area. It is as well possible for the landlord to lodge a complaint with the RDC Judicial Committee, stating that the lease allowance for his or her property is not proportionate to the services rendered, and requesting to exempt the real estate from the rental index, provided that the approval of such criteria is subject to the discretion of the Judicial Committee which hears the case
Tenancy Term
HH Judge Abdulqader Mousa affirmed that Article (5) of the rental law indicated, “The term of a tenancy contract must be specified. Where the term is not specified in the lease contract or where it is impossible to prove the alleged term, the lease contract will be deemed valid for the period specified for payment of the rent.” While the Article (6) of the aforementioned law states, “Where the term of a lease contract expires, but the tenant continues to occupy the real estate property without any objection by the landlord, the lease contract will be renewed for the same term or for a term of one year, whichever is shorter, and under the same terms as the previous lease contract.” Likewise, the Article (7) states, “Where a lease contract is valid, it may not be unilaterally terminated during its term by the landlord or tenant. It can only be terminated by mutual consent or in accordance with the provisions of this Law.”