In Dubai, a lease agreement, also known as a rental contract or tenancy agreement, follows a specific framework governed by the Real Estate Regulatory Agency (RERA) under the Dubai Land Department. The regulations may vary based on the type of property (residential or commercial) and the location within Dubai. Here are some key points to understand about lease agreement in Dubai.
Lease agreements in Dubai can be for residential or commercial properties. Residential lease agreements are more common and used for renting apartments, villas, or townhouses, while commercial lease agreements are for renting office spaces, retail shops, warehouses, etc.
Standard Lease Form
The RERA has established a standard template for residential lease agreements, which landlords and tenants are required to use. The standardized contract helps ensure clarity and consistency in terms of the agreement.
All lease agreements for residential properties in Dubai must be registered with the Ejari system. Ejari is an online registration platform that records the details of the lease contract, and it is mandatory to complete this registration for the lease to be legally recognized.
Terms and Conditions
The lease agreement should clearly specify the terms and conditions of the tenancy, including the names and addresses of the landlord and tenant, details of the property, lease duration, rent amount, mode of payment, security deposit, and any other relevant terms.
Rent is usually paid in advance, typically on a yearly or quarterly basis. The landlord may request post-dated cheques for the rent payments.
It is customary to pay a security deposit, usually equivalent to one month’s rent, to cover any potential damages or unpaid rent during the tenancy. The landlord is required to refund the security deposit to the tenant at the end of the lease, subject to the property’s condition.
Maintenance and Repairs
The lease agreement should outline the responsibilities of both parties regarding property maintenance and repairs. Generally, landlords are responsible for major repairs, while tenants are responsible for keeping the property in good condition and addressing minor maintenance.
Renewal and Termination
The lease agreement should state the conditions for lease renewal and termination, including notice periods for both the landlord and the tenant.
Restrictions and Rules
The agreement may include specific rules and restrictions related to the property, such as pet policies, subleasing, smoking, etc.
Upon successful registration with Ejari, both the landlord and tenant will receive an Ejari certificate as proof of the registered lease agreement. It’s essential for both parties to thoroughly review and understand the terms of the lease agreement before signing. Seeking legal advice, if needed, can help ensure a smooth and legally compliant leasing process in Dubai.