Rent: A Variational Priniciple Concept

(Referred from Law No. (26)  Of 2007: Regulation of Landlord-Tenant relationship

In emirates of Dubai. Amended by virtue of Law No. (33) Of 2008.)

The rent – is a contract by which landlord is committed to enable tenant to benefit from the property for specific purpose and period against specific compensation – payable to the Landlord by the Tenant. It is mandatory from the part of the Tenant to pay the rental amount on the agreed time

The Landlord is entitled to provide the Tenant with all the necessary requirements, as agreed in the contract.

Certain obligations of both the Tenant and the Landlord are listed below:

The Landlord’s obligations towards the Tenant

  • It is mandatory on the part of the Landlord to handover the premises in a good condition as agreed upon the contract. However, if the contract is made to on leasing of the incomplete premises to be completed by the Tenant, then it should be precisely mentioned that who will bear the completion costs.
  • During the tenancy contract, Landlord is liable to conduct maintenance works in the premises which prevents the Tenant form having intended benefit, unless otherwise agreed upon.
  • Tenant is not allowed to make any changes in the premises, utilities and the things associated with the property. Landlord will be liable to such changes, which are made by him or his authorized representatives. Also such damages, faults or shortages which are not being caused due to the Tenant.
  • It’s necessary to provide all the necessary approvals to the Tenant by the Landlord, if the Tenant wishes to make a decoration or any other work which requires such approvals, to be presented to the competent authority. Also, such works should not affect the structure of the premise and the Tenant should have the necessary documents applying for such approvals.

The Tenants obligations towards the Landlord

It is the duty of the Tenant to pay the rental on due dates and shall maintain the property as his own. He is not allowed to make any changes in the premise without the permission of the Landlord and the competent authority.

While making the Lease contract, Landlord may obtain refundable security deposit which will be mentioned in the tenancy contract. This security deposit is refunded to the Tenant after the expiry of the Tenancy contract.

Tenant is obliged to return the premise to the landlord in the same condition as it was handed over to him at the time of contract. Other shortages which are beyond the control of the Tenant will not be considered.

It is the duty of the Tenant to pay all the fees and taxes due to government authorities for benefiting from the premises includes the taxes due for subleasing.

Unless and otherwise agreed in the contract, the Tenant is not entitled to remove any fixed improvements added by him during evacuation or handing over of the premises.

The Tenant shall not assign the use of premise or sublease the premise without a written consent by the Landlord.

The Rules related to Evacuation?

A landlord is entitled to ask the Tenant to evacuate the premise in any one of the following cases.

1. Before  the expiration of the Tenancy:

  • After receiving 30 days’ notice from the Landlord, if the Tenant fails to make the payment of rent or any portion of it, Landlord can ask for eviction of the property before the expiry of the Tenancy contract, unless otherwise agreed upon.
  • If Tenant subleases the property or part of it, without the written consent of the Landlord. In such case, Landlord can notify Tenant as well as subtenant to evict the premise. In the meantime subtenants right to claim compensation will not be harmed.
  • If the Tenant uses the premise or allows to use others, for illegal or immoral activities.
  • If the premise is a shop and Tenant fails to occupy it without a reasonable grounds, for 30 successive dates or ninety separate days in a one year, unless otherwise agreed upon.
  • If the tenant causes changes to the premise which causes danger to the safety of the premises which cannot be restored to its original position, or if he causes damages to the premise purposely or due to his gross negligence, or if he allows others to cause such damages.
  • If the Tenant uses the premise other than the purpose mentioned in the contract or if he uses the premise in a way that the use is contrary to the regulations in Emirate in connection with the planning, construction, and use of lands.
  • If the premise is in an unsafe condition, by giving the report of proof which is approved by Dubai Municipality can inform the tenant to evict the premise.
  • If the Tenant fails to perform any obligations provided under law or any conditions of the lease contract within thirty days of a notice sent by Landlord to perform such obligations or conditions.
  • If there are any requirements of urban development in the Emirate require such premise to be demolished and reconstructed upon the decision of the competent government bodies.

2. Upon expiration of tenancy if the:

  • Landlord wishes to demolish premises for reconstruction or to add new constructions, provided with the necessary license obtained from the competent bodies.
  • Premises require renovation or comprehensive maintenance which cannot be conducted while tenant is occupying the premise, by providing a technical report attested by Dubai Municipality
  • Landlord wishes to recover the premises for his personal use to his closest blood relative by proving there is no appropriate substitute for the same.
  • Landlord wishes to sell the leased premise

Note: Tenant should be notified by the Landlord mentioning the reasons for evacuation before 12 months of the date of evacuation through a notary public or by the registered mail.

Dispute Resolution System:

All the disputes arise between a landlord and Tenant are settled by Rent Settlement Dispute Centre which is based in Dubai land Department. It is a fast and simple mechanism with the involvement of the judiciary and adjudication procedure to solve the tenancy dispute between Landlord and Tenants.

Conclusion:

The rental Laws are very effective in UAE. It provides a clear structure regarding the rights and liabilities of the landlord and the Tenant. It also protects the rights of both the parties. Even to increase or decrease the rental amount it is advisable to follow Rent calculator, which gives the information regarding the Increase and decrease of the Rent.

If you need any advice related to property law, please get in touch with our experienced property lawyers in Dubai.