A tenancy contract in Dubai is a formal agreement that establishes the legal relationship between a property owner and a resident. Its effectiveness depends on a clear understanding of the obligations and timelines set out in the document.
For both landlords and tenants, awareness of specific lease events is critical to maintaining a compliant, well-managed long-term rental agreement. This article provides a detailed examination of the key dates and procedures that define the lifecycle of a tenancy contract in Dubai, from its inception to its conclusion.
Dubai’s Tenancy Contract Events
A tenancy contract is a binding document governed by Law No. (26) of 2007, which regulates the relationship between owners and residents in the Emirate of Dubai.
The contract outlines specific events, each with its own deadline and set of requirements. These events are mandated by the Dubai Land Department (DLD) and its regulatory arm, the Real Estate Regulatory Agency (RERA). Tracking these events is a fundamental responsibility for both parties to avoid legal and financial complications.
Key Lease Events in the Tenancy Lifecycle
Renting a property follows a clear set of steps. Completing each step properly helps protect the rights and responsibilities of both the landlord and the tenant.
1. Drafting and Signing the Tenancy Contract
What it is: This is the initial stage where the terms of the rental agreement are documented. The contract should include all agreed-upon conditions, such as the rent amount, payment schedule, contract duration, and each party's responsibilities. For detailed information about preparing a tenancy contract, please read our blog ‘How to make a tenancy contract in Dubai’.
Why it is important: A comprehensively drafted tenancy contract is the primary reference point for resolving any disputes. It sets clear expectations for the entire tenancy period.
Who is responsible: Both the landlord and the tenants should carefully review the contract before signing. Although agents commonly prepare the documents for new rentals, tools like Habi allow landlords and tenants to generate a fully compliant tenancy contract independently.
Consequences of omission: An incomplete or vague tenancy contract can lead to disagreements over maintenance, rent increases, and end-of-term procedures. All clauses should be explicit and understood by both signatories.
2. Ejari Registration
What it is: Ejari is the official system for registering tenancy contracts with the RERA. It is a mandatory step for all residential and commercial rental agreements in Dubai.Here’s a detailed blog outlining the differences between a tenancy contract and Ejari certificate.
Why it is important: An Ejari certificate is required to connect utility services (DEWA), obtain or renew a residence visa, and file any case with the Rental Dispute Settlement Centre (RDSC). It formalises the contract under Dubai law.
Who is responsible: Either the property owner (landlord) or the resident (tenant) can complete the Ejari registration, though the resident often handles it. The process requires specific documents from both parties.
Consequences of omission: Without a valid Ejari, the resident cannot activate utilities, and neither party can legally pursue a dispute through official channels. The contract lacks formal recognition. For information on registering Ejari, please visit our Step-by-Step Guide to Registering Ejari Online in Dubai.
3. Rent Payment and Security Deposit
What it is: The contract specifies the rent amount, the payment method (cheque, credit card, bank transfer, etc.), the number of payments, and their due dates. It also outlines the security deposit amount, which can be paid via cheque, bank transfer, cash, or other agreed methods, and is held by the owner for the duration of the tenancy.
Why it is important: Timely rent payment is a key obligation for tenants, and the payment schedule reflects a firm financial commitment. The security deposit protects the owner against property damage or unpaid utility bills.
Who is responsible: The tenant is responsible for making rent payments as per the agreed schedule and method and for paying the security deposit. The owner is responsible for safeguarding the deposit and refunding it at the end of the tenancy, minus any lawful deductions.
Consequences of omission: Late or missed payments, whether by cheque, transfer, or other methods, can result in legal and financial penalties for the tenant. Failure to pay rent could lead to eviction proceedings. An unrecorded security deposit payment or lack of proof of payment could complicate its refund.
4. Property Handover
What it is: This is the physical process of transferring the property keys from the owner to the resident at the start of the tenancy.
Why it is important: A joint inspection should be conducted, and both parties should sign a move-in report. This report documents the state of the property and its contents, which is later used to assess any damage at the end of the lease.
Who is responsible: Both parties should be present for the handover to agree on the property's condition, and the move-in report should be completed and signed by both to document it accurately.
Consequences of omission: Without a signed condition report, disputes over responsibility for pre-existing damage versus new damage become difficult to resolve, potentially affecting the security deposit refund.
5. Checking for a Permissible Rent Increase
What it is: RERA provides an official online tool, the Rental Index Calculator, which determines the maximum percentage by which an owner can raise the rent upon renewal.
Why it is important: This protects residents from arbitrary rent hikes and provides owners with a clear, legal guideline for adjusting rental values based on market averages.
Who is responsible: Both parties should consult the calculator. The owner must reference it to justify a proposed increase, and the resident should use it to verify the increase is lawful.
Consequences of omission: An owner who demands an increase above the RERA stipulation will not have a valid case with the RDC. A resident who pays an unlawfully high increase may struggle to reclaim the excess amount.
6. The 90-Day Notice for Vacating or Changing Terms
What it is: The law requires a minimum of 90 days' written notice if either party intends not to renew the contract or wishes to change its core terms, such as the rent amount.
Why it is important: This provides adequate time for the resident to find a new property and for the owner to find a new resident. It is a fundamental legal requirement to alter the tenancy at its expiration.
Who is responsible: Either party can serve notice to the other. Notices must be formal and delivered in writing. To make this process easier, platforms like Habi can be used. Habi sends automated reminders for key tenancy events, ensuring both landlords and tenants stay on top of legal requirements.
Consequences of omission: If an owner fails to provide notice, the existing contract terms are automatically renewed. If a resident fails to provide notice, they may be legally obligated to another full term or penalised under the contract.
7. Tenancy Renewal and Ejari Renewal
What it is: If both parties agree to continue the tenancy, the contract should be renewed, often for another 12 months. The Ejari registration must also be updated to remain valid.
Why it is important:Tenancy renewal and Ejari maintain the legal standing of the agreement and continuous access to government services.
Who is responsible: Tenancy renewals are often handled by the agent. However, an agent is not required if both the landlord and tenant have agreed on the renewal terms. In such cases, the tenancy and Ejari can be renewed directly between the two parties, without involving third parties or paying additional commissions. Digital platforms such as Habi make this process straightforward by allowing landlords and tenants to update the tenancy terms, sign the contract online, and renew Ejari for the new term in one place.
Consequences of omission: An expired Ejari can lead to the disconnection of utilities and invalidates the contract in any official dispute. Visit our blog How to Renew Your Tenancy Contract in Dubai for further details.
8. Contract Termination, Move-Out, and Final Handover
What it is: This is the process of ending the tenancy, which involves the resident vacating the property and returning the keys.
Why it is important: A final inspection, compared with the initial condition report, determines the state of the property and any deductions from the security deposit.
Who is responsible: The resident must vacate the property by the contract end date and leave it in the condition specified in the contract. The owner must conduct the final inspection.
Consequences of omission: A resident failing to vacate becomes an unlawful occupant. An owner who fails to conduct a proper inspection may forfeit the right to claim damages.
9. Security Deposit Refund
What it is: The process of the owner returning the security deposit to the resident after the tenancy ends.
Why it is important: This represents the conclusion of the financial relationship. Deductions can only be made for proven damage beyond normal wear and tear, or for unpaid utility bills.
Who is responsible: The owner is obligated to refund the deposit within a reasonable timeframe, typically after receiving final utility bills.
Consequences of omission: Unlawful withholding of the security deposit can lead to a formal dispute with the RDC.
Tips to Never Forget Lease Events
Maintain a Centralised Calendar: Immediately upon signing the contract, enter all critical dates, including rent cheque due dates, the 90-day notice window, and the contract expiry date, into a digital calendar with automated reminders.
Document All Communication: Ensure all agreements, notices, and inspections are recorded in writing and signed by both parties. This creates a verifiable paper trail.
Verify Rent Changes: Always use the official RERA Rental IndexCalculator to assess the legality of any proposed rent adjustment.
Use a Management Tool: Consider using a property management platform to centralise contract details, track deadlines, and handle important tasks. Habi's digital platform enables you to create and renew tenancy contracts, manage Ejari registration, and automatically track key dates with renewal reminders, keeping both owners and residents organised.
Frequently Asked Questions (FAQ)
What is the most critical date in a Dubai tenancy contract?
The 90-day notice period before the contract expiry is among the most critical. Missing this deadline can legally bind both parties to renew the contract under the existing terms.
Who is responsible for registering Ejari?
The responsibility can fall on either the owner or the resident. It is a prerequisite for the resident to activate utilities, so the resident often completes this, but the owner must provide the necessary ownership documents.
Can an owner increase the rent at any time?
No. Rent can only be reviewed at the time of contract renewal. Any increase must align with the permissible percentage published by RERA via its Rent Increase Calculator. What are valid reasons for deducting from a security deposit? Valid deductions are limited to costs for repairing damage that exceeds normal wear and tear, and for settling any outstanding utility bills. The initial condition report is the primary evidence for assessing damage.
What happens if I do not register my tenancy contract with Ejari?
Government entities will not recognise the contract. This means the resident cannot obtain a DEWA connection or use the contract for visa procedures, and neither party can file a case with the Rental Disputes Centre.
