Can you exit your tenancy agreement early in Dubai?

• Current Law for Ending a Lease Agreement Early
• Tips for Ending a Lease Early
• Other Important Tenancy Laws
• FAQs

Are you thinking of moving out before your rental contract is up? Before taking the plunge, read up on what the law says regarding the early termination of a tenancy contract in Dubai. MyBayut brings you an overview of the options available to renters when planning to end a tenancy agreement early in Dubai.

LAWS RELATED TO EARLY TERMINATION OF TENANCY CONTRACT IN DUBAI

Wondering if you can end your tenancy early for your property for rent in Dubai? When terminating tenancy in Dubai landlords and tenants must adhere to established rules and regulations.

According to Article 7 of Law No. (26) of 2007, the tenancy contract is binding on the landlord and tenant and cannot be terminated by one party without the consent of the other.

However, after Law No. (33) of 2008 was passed, which amended certain articles of Law 26 of 2007, tenants have the option to terminate their rental agreements early without incurring any penalties or fees.

According to Dubai tenancy law for early termination, they are only required to provide the landlord with a 90-day notice before their intended departure. This can be beneficial if tenants need to relocate suddenly due to unforeseen circumstances.

The updated law also requires landlords to give a 90-day notice for early termination of the contract to the tenant. This gives tenants extra time to find a new place to live and prepare for the move.

Tips for Tenancy Contract Cancellation in Dubai

Here are some tips that renters can follow while leaving a property before end of tenancy in Dubai:

• Firstly, check your contract for an exit clause that will allow the tenancy contract’s early termination.
• When breaking a tenancy contract in Dubai, tenants must make sure an exit clause is mentioned in the lease agreement when signing the contract.
• This will save renters a lot of hassle and negotiation if they find themselves in the position to cancel the tenancy contract in Dubai.
• If no such clause is mentioned in your contract, approach your landlord.
• Explain the situation and why you need to cancel the tenancy contract. Make sure you give adequate notice for the same.

WHAT IF THE TENANCY CONTRACT DOES NOT INCLUDE AN EARLY EXIT CLAUSE

If the rental contract does not include an early termination clause in Dubai, then the tenant could face legal and financial implications. The penalty for early termination of the tenancy contract is paying rent of up to 2 months.

Landlords impose this financial penalty to compensate for the loss of rental income incurred due to early vacancy. This penalty can equate to the total remaining rent for the lease term or a negotiated sum.

While tenants may seek alternative arrangements through negotiation with the landlord, the ultimate decision regarding early termination rests with the property owner.

THINGS TO KEEP IN MIND WHEN BREAKING A LEASE AGREEMENT IN DUBAI EARLY

When breaking a lease agreement early in Dubai, renters should be aware of the following postulates:

Keep the Property in Pristine Condition

If you are wondering “how to cancel a tenancy contract in Dubai early”. Then it’s essential to consider the law regarding it. As per Article (15) of Law No. (33) of 2008, the tenant must receive the rental property in good condition and the landlord is typically required to undertake any major maintenance or repairs required.

Rent Management

Rental payments in Dubai are typically made through post-dated cheques, which are deposited to the landlord. However, if the landlord does not wish to receive the cheques, they can be handed to the Dubai Rental Dispute Settlement Centre.

Review and Amend Your Tenancy Contracts

While a standard tenancy contract in Dubai is one page, an addendum can be added to include further terms and conditions of the contract. Always ensure that you are aware of these terms and clauses, which may pertain to payments for utility charges and repairs or increases in the annual rent.

FAQs

What is the penalty for early termination of a tenancy agreement in Dubai?

According to the Dubai Tenancy Law, if renters terminate their tenancy agreement early, then they could be liable to pay up to two months of rent. There are several terms and conditions to keep in mind and it depends upon the contract signed with the landlord. You should also consider the RERA rules for the termination of a contract by a tenant when considering breaking a lease early.

Can I cancel my tenancy agreement before I move in?

You have to adhere to the RERA and other tenancy termination clauses as per the Dubai law and your tenancy contract agreement.

What information should be included in a tenancy contract in Dubai?

Your tenancy contract should include the following details:

• Tenant and landlord’s names and contact information
• Address of the property, location and size
• DEWA premise number
• The amount of agreed rent
• Terms and conditions of the agreement
• Agreement date
• Mention the security deposit amount
• Payment methods

For more information explore the complete process of leasing properties in the UAE.

WHAT TO DO WHEN THE TENANCY AGREEMENT ENDS?

The tenant and landlord can choose to either renew the contract or terminate it. The new agreement will be agreed for the same term or a year. According to Article 13 of Law No. (33) of 2008, should the landlord or tenant decide to amend the terms of a contract or review the rent for renewing the agreement, they must do so before the expiry of the existing agreement.

If they fail to reach an agreement, the Tribunal will set the rent based on criteria established in Article 9 of Law No. (33) of 2008, which includes:

• Percentage of rent increase determined by RERA.
• The economic conditions of the emirate.
• The current condition of the property.
• Average rent of similar properties in the property market.

Can a landlord end a Dubai tenancy contract early and evict the tenant? 

According to Article 25 of RERA Tenancy Law (33) of 2008, early termination of lease agreement by a landlord can be demanded, for the following reasons:

1. The landlord can evict a tenant who fails to pay rent, or part of it, within 30 days of receiving a written notice, unless all parties involved agree otherwise.
2. Subleasing the property without the landlord’s written approval is grounds for eviction.
3. Using the property for immoral or illegal activities, or allowing others to do so, is a reason for eviction.
4. The landlord can evict a tenant who causes or allows others to cause, damage to the property or changes that endanger its safety.
5. If the tenant uses the property for a purpose different from what it was originally leased for, they can be evicted.
6. Failing to comply with any terms of the tenancy contract or the law within 30 days of a written notice from the landlord to rectify the situation is also a reason for eviction.
7. The landlord can evict a tenant if the property is at risk of collapsing.
8. Government development plans requiring demolition and reconstruction of the property according to government authority instructions are grounds for eviction.
9. In the case of commercial properties only, the landlord may seek eviction if the tenant closes business operations for 30 consecutive days or 90 non-consecutive days without providing valid reasons.

In all of the above cases, the landlord has to notify the tenant through the Notary Public or by registered mail. 

What should a tenant do if their landlord is forcing them to evict before contract ends?

If a tenant in Dubai is facing unlawful eviction by their landlord, the tenant must first approach the landlord and try to negotiate the issue.

If the tenant is unable to come to a resolution, with the landlord, the tenant has the right to file a complaint against the landlord at the Dubai Rent Dispute Settlement Centre (RDSC).

To follow RERA complaint procedure in Dubai, tenants should ensure they have all the valid documents of their tenancy contract or Ejari Dubai, the latest DEWA bill, title deed copy, tenant’s passport and visa copy.

Additionally, they should have Emirates ID copy and any other supporting documents before approaching the RDSC. 

Can tenants request non-renewal of tenancy contract in Dubai if they are unable to pay rent?

If a tenant is facing financial hardship and is unable to pay the rent in Dubai, the first step would be to approach the landlord. It’s better to inform them about the predicament and attempt to negotiate a deal that’s mutually agreeable between both parties.

Providing supporting documents such as a copy of the termination letter/pay cuts issued by your employer can help substantiate the claim of early termination of the lease clause.

If the landlord is unwilling to negotiate, the tenant can contact the RDSC on 800-4488 to request for advice. 

Should tenants hire legal counsel if they wish to cancel their tenancy contract early?

If a tenant wishes to break the lease agreement early, it is not necessary to hire legal counsel. However, if you plan to negotiate your contract clauses, it’s important to hire an experienced real estate lawyer familiar with tenancy agreement renewal and other matters.

And that concludes MyBayut’s guide to early termination of tenancy contract in Dubai. It’s essential to be aware of the responsibilities and rights of tenants before renting a property in Dubai.

Make sure to go through the official website of Dubai Land Department (DLD) for more information. DLD is the government authority for all matters concerning real estate in the emirate.

You can also learn more about the Real Estate Regulatory Agency (RERA), the branch of DLD that regulates and registers rental agreements in Dubai.

Want to know how much your rent might increase by next year? Residents can use the RERA calculator free of charge to find out whether their property is applicable for a rent increase!

Keep following MyBayut for more articles on the rental market in Dubai!