Everything you need to know about subletting disputes in Dubai

• What is a Sublet in Dubai?
• Subletting Laws in Dubai
• Landlord Rights
• Causes of Subletting Disputes in Dubai
• How to Resolve Subletting Disputes in Dubai
• FAQs

It’s a no-brainer—Dubai is one of the top destinations for expats, thanks to its tax-free income and numerous perks. Many have flocked to the emirate for better career opportunities, leading to a significant increase in demand for affordable housing. However, this surge in demand often results in conflicts between landlords and tenants. Understanding the legal landscape surrounding subleasing and subletting disputes in Dubai is crucial. Let’s start by exploring what subletting entails and its legal status.

What is a Sublet Agreement in Dubai?

A sublease or sublet agreement is a contract between a tenant and a subtenant, where the tenant leases out all or part of the property they are renting. The original tenant, now acting as a sublessor, remains responsible for collecting rent from the subtenant and ensures compliance with the original lease terms.

This agreement typically requires the landlord’s written consent and the terms of the sublet agreement must be clearly outlined. The duration of the sublet usually aligns with the original lease’s expiry date or its termination.

Subletting Laws in Dubai 

Subletting or subleasing disputes in Dubai are primarily governed by the relationship between landlords and tenants as outlined in the relevant legal statutes.

The surge in rental property transactions has also seen a rise in conflicts, often stemming from disagreements over lease terms, property conditions and unmet contractual obligations.

Landlords and tenants must be well-versed in Dubai’s tenancy laws to understand their rights and obligations when subletting disputes arise.

Consequences of Subleasing Without Landlord’s Consent

According to Dubai Tenancy Law, landlords have certain rights, including the right to timely rent payments, the permission to increase rent under specific conditions, the right to evict tenants under particular circumstances and the right to maintain and service their property.

According to the landlord rights in Dubai, subletting a property in Dubai without obtaining the landlord’s prior written consent can lead to serious repercussions. If a tenant sublets without permission, the landlord is legally entitled to demand the eviction of both the tenant and the sub-tenant before the lease term concludes. This is explicitly outlined in paragraph (b) of Article 25, which states:

“The landlord may seek eviction of the Tenant from the Real Property before the expiry of the Lease Contract term in any of the following cases: Where the Tenant sub-lets the Real Property or any part thereof without obtaining the Landlord’s written approval. In this case, the eviction will apply to the Sub-tenant, who will have the right to claim compensation from the Tenant.”

Landlords in Dubai can seek recourse through the Real Estate Regulatory Agency (RERA) if tenants violate this condition by subleasing without proper authorisation.

This legal provision allows landlords to pursue the eviction of both the tenant and any sub-tenant(s) involved. Furthermore, the sub-tenant has the right to seek compensation from the tenant for any negative consequences that result from this breach.

It’s crucial for both landlords and tenants in Dubai to understand these legal requirements when considering subleasing arrangements fully. Adhering to these regulations, as established by RERA, is essential to avoid legal disputes and the significant penalties that may arise from unauthorised subleasing.

Distinguishing Between Sublet and Assignment

It’s important to be aware of the difference between subleasing and assignment. In a sublease, the original tenant retains a connection with the property and continues to pay rent to the landlord, whereas, in an assignment, the entire lease is transferred to a new tenant, releasing the original tenant from all obligations. The legal implications of these arrangements can vary, depending on whether the landlord’s approval is required.

Common Reasons of Subletting Disputes in Dubai

Subleasing disputes in Dubai can arise for various reasons, including:

Unjust Evictions or Lease Terminations

Disputes may occur when landlords attempt to evict tenants without legitimate grounds or terminate leases outside the bounds of Dubai Tenancy Law.

Leasing Defective Properties

Tenants may encounter problems if landlords lease properties with significant defects, violating the implied warranty of habitability.

Unpaid Utilities or Transfer Cost

One of the most common causes of conflict is when tenants fail to settle utility bills or property transfer costs as agreed in the tenancy contract.

Property Damage or Unlawful Activities

Disputes can also emerge if tenants damage the property or engage in illegal activities, breaching the lease terms.

Unauthorised Subleasing

In some cases, landlords may face issues with tenants who sublease the property without their prior consent and it may violate the lease agreement.

How to Resolve Subletting Disputes in Dubai 

There are different ways as per law to resolve sublet disputes in Dubai. Some of the methods to try are as follows:

Rental Disputes Center (RDC)

The Rental Disputes Center (RDC) in Dubai is a specialised entity tasked with resolving conflicts between landlords and tenants. The RDC encourages parties to engage in negotiations to reach an amicable resolution. If negotiations fail, either party can file a formal complaint with the RDC.

Filing a Rental Dispute

To resolve rental disputes in Dubai, it is essential to have all necessary documentation, including passports, residence visas, Emirates IDs, Ejari certificates, tenancy contracts and relevant correspondence. These documents must be translated into Arabic, the official language of the UAE judiciary and submitted to the RDC for review.

Landlord Rights in Dispute Resolution

Landlords in Dubai have specific rights during the dispute resolution process, including:

• Receive rent payments on time without any alterations.
• The ability to increase rent within the guidelines set by the Real Estate Regulatory Agency (RERA).
• Landlords can evict tenants for valid reasons, such as non-payment of rent or breach of contract terms.
• If required, the landlord is entitled to inspect the property within 48 hours’ notice to assess its condition.
• The landlord has the right to deduct repair costs from the security deposit for damages beyond normal wear and tear.
• The landlord is legally allowed to terminate the tenancy in cases of significant contract breaches affecting the tenant’s interests.

Responsibilities and Obligations of a Tenant in Dubai

Tenants in Dubai also have legal obligations that must be fulfilled during the tenancy period. Adhering to these obligations is crucial for maintaining a harmonious relationship with the landlord and minimising conflicts. Key responsibilities include:

Timely Rent Payment

Tenants are required to pay rent as per the agreement. Failure to do so may result in legal actions, including eviction.

Property Maintenance

Tenants must maintain the property in good condition and promptly notify the landlord of any damage or maintenance issues.

Compliance with Lease Terms

 Tenants must adhere to the lease terms, including restrictions on subleasing, property modifications and the designated use of the property.

FAQs About Subleasing Disputes in Dubai 

How do I resolve a rental dispute in Dubai?

The Rental Disputes Centre (RDC) in Dubai resolves disputes between landlords and tenants. If any issues arise concerning your rental agreement, you can escalate the matter to the RDC.

Is subletting/subleasing legal in Dubai?

Yes, subleasing is permitted in Dubai, provided it does not conflict with the original owner’s interests. Tenants can sublease a property with the landlord’s written consent.

What is the rental dispute department in Dubai?

Rental disputes in Dubai are typically submitted to the Rental Disputes Settlement Center within the Dubai Land Department (DLD) which is responsible for resolving conflicts between landlords and tenants.

How much is the dispute fee for rent in Dubai?

The dispute fee in Dubai generally ranges from AED 500 to AED 20,000, calculated as 3.5% of the annual rent or lease value. This fee applies to cases involving eviction, lease renewal, termination, rental claims and property return after eviction for demolition or reconstruction purposes.

That’s all for our guide to subleasing disputes in Dubai. The resolution of these requires a thorough understanding of both landlord rights and tenant obligations under the current legal framework.

By familiarising themselves with the provisions of Dubai Tenancy Law, landlords and tenants can avoid potential conflicts and foster a mutually beneficial relationship. However, if different types of rental disputes do arise, the Rental Disputes Centre (RDC) provides a structured process for resolving these issues in a legal and orderly manner.

Find more information about sharing accommodation in Dubai if you have plans to sublet your property.