What Is a Tenancy Contract in Dubai: Understanding Lease Agreements

Dubai's rental market operates under one of the most transparent frameworks in the world — regulated, digitalized, and designed to protect both landlords and tenants. Yet many people still misunderstand its foundation: the tenancy contract, or more precisely, the Ejari-registered lease agreement.

Whether you're renting a studio in Arjan or managing multiple apartments in Dubai Marina, knowing how tenancy contracts work is essential to protecting your rights, avoiding legal pitfalls, and ensuring smooth property management.

What Exactly Is a Tenancy Contract in Dubai?

A tenancy contract is a legally binding agreement between a landlord and tenant that defines the rent, duration, responsibilities, and terms of occupation.

In Dubai, such contracts become legally recognized only after registration through Ejari, the official system of the Dubai Land Department (DLD) under the Real Estate Regulatory Agency (RERA).

Without Ejari registration:

• DEWA (electricity and water) cannot be activated,
• the lease cannot be used in court,
• and tenants lose protection under Dubai tenancy law.

The Legal Framework

Dubai's tenancy ecosystem is built on clear, enforceable laws:

• Law No. (26) of 2007 — regulates landlord-tenant relations.
• Law No. (33) of 2008 — outlines renewal and eviction rules.
• Decree No. (43) of 2013 — caps rent increases using RERA's Rental Index.
• Decree No. (26) of 2013 — established the Rental Dispute Center (RDC).

If your contract is Ejari-registered, the law fully protects both parties and ensures that disputes are resolved transparently through RDC.

What Every Tenancy Contract Must Include

A valid RERA-compliant tenancy agreement must clearly specify:

• Full names and Emirates IDs or passport details of both parties.
• Property address, unit number, and Title Deed reference.
• Rent amount and payment schedule (cheques, transfer, or direct debit).
• Duration (typically 12 months, renewable).
• Security deposit (usually 5%-10%).
• Maintenance responsibilities.
• Termination and notice clauses.
• Ejari registration number and both signatures.

How to Register a Tenancy Contract with Ejari

You can register your lease via:

1. Ejari typing centers,

2. Dubai REST App, or

3. RERA-licensed real estate firms (such as DDA Real Estate).

Required Documents

• Signed tenancy contract (RERA format)
• Copy of landlord's Title Deed or POA
• Emirates IDs of landlord and tenant
• Tenant's residence visa or entry permit
• DEWA Premises Number

Fees

AED 220-250 (official fee).

After registration, you'll receive a digital Ejari certificate containing:

• Ejari number,
• Property ID,
• Names of parties,
• Rent amount and term.

Security Deposit and Inspection Protocol

The deposit secures against damages or unpaid bills.

Standard deposit:

• 5% for furnished units
• 10% for unfurnished units

Refund Rules

• Must be returned within 30 days after move-out.
• Deductions allowed only for proven repair or utility costs.
• Disputes are resolved through RDC.

DDA Move-In / Move-Out Checklist

• Conduct joint inspection with photos and video.
• Record meter readings (DEWA, chiller, gas).
• Check keys, cards, and fobs.
• Provide written condition report.

Maintenance Responsibilities

Dubai law distinguishes between major and minor maintenance:

Type of Repair	Responsible Party	Notes
Structural (roof, plumbing mains, wiring)	Landlord	Always landlord's duty
Minor repairs (bulbs, filters, small leaks)	Tenant	Up to AED 500 typical
Wear & tear / fixtures	Shared / by contract	Should be defined clearly
Air conditioning	Landlord (system) / Tenant (filters)	Clarify in contract

Payment Methods — Beyond Post-Dated Cheques

While post-dated cheques are still standard, other payment methods are now accepted:

• Bank transfer or standing order
• UAEDDS (Direct Debit System) — increasingly used by corporations
• Digital wallet or escrow transfer for short-term rentals

Corporate leases require:

• Trade License,
• Establishment Card,
• Authorization Letter or POA from company signatory.

Rent Increase Rules (Decree No. 43 of 2013)

Rent adjustments must comply with the RERA Rental Index — accessible through the RERA Rent Calculator.

Difference from Market Rent	Maximum Increase Allowed
<10%	No increase
11-20%	Up to 5%
21-30%	Up to 10%
31-40%	Up to 15%
>40%	Up to 20%

Landlord obligations:

• Provide 90 days' written notice before renewal if increasing rent.
• Increase must match RERA's Index at time of notice.
• No rent change during the first 12 months of tenancy.

Notice Periods and Termination

For Tenants

• 90 days' notice before lease expiry to vacate or modify terms.
• Early exit penalties typically equal 1-2 months' rent (per contract).

For Landlords

Under Law No. 33 of 2008, a landlord may terminate only for:

1. Sale of property,

2. Owner or first-degree family occupancy,

3. Major renovations requiring vacancy,

4. Tenant default or misuse.

Notice must be 12 months, sent via Notary Public or registered courier. Email or WhatsApp are not considered valid unless explicitly stated in the contract.

Short-Term vs Long-Term Rentals

Aspect	Short-Term (Holiday Homes)	Long-Term (Residential)
Duration	Days or months	1 year (renewable)
Regulator	DTCM (Tourism)	RERA / DLD
Registration	DTCM Permit	Ejari
Utilities	Included	Tenant's responsibility
Ideal For	Tourists, digital nomads	Families, residents, companies

Company and Commercial Leases

Corporate tenants must submit:

• Trade License,
• MOA or Board Resolution,
• Signatory authorization.

Commercial Ejari registration includes:

• DED classification,
• fit-out and rent-free clauses,
• landlord handover condition.

Subletting and Shared Occupancy

Subletting is allowed only with written landlord consent and updated Ejari registration. Unauthorized sublease or overcrowding can trigger fines or RDC eviction.

Always confirm community rules — some districts limit the number of occupants per unit or bedroom.

Move-In Permits and Community Compliance

In developments managed by Emaar, Nakheel, Dubai Properties, and others, you'll need:

• Approved Move-In Permit,
• Ejari certificate,
• DEWA activation,
• Copy of tenant's Emirates ID,
• Proof of moving company insurance (if required),
• Paid community move-in fee.

Common Tenant & Landlord Mistakes

Mistake	Consequence	DDA Solution
Not registering Ejari	Contract unenforceable, DEWA blocked	Same-day Ejari setup
Missing 90-day notice	Renewal disputes, rent loss	Automatic DDA reminders
Unfair deposit deduction	RDC claim, penalties	DDA inspection reports
Paying cash / third-party cheque	Legal risk	Verified payment process
Verbal agreements	No legal weight	Written RERA contracts only

How Rental Disputes Are Resolved

All tenancy disputes fall under the Rental Dispute Center (RDC).

Procedure

1. File a claim (fee: 3.5% of annual rent, min AED 500).

2. Submit Ejari, contract, cheques, and inspection proof.

3. Attend mediation (many cases settle here).

4. If unresolved, judgment is issued and enforceable by court.

Pre-Action Checklist:

• Send official legal notice (via courier or notary).
• Collect all receipts, photos, and correspondence.
• Prepare calculation of rent arrears or damages.

Red Flags — What to Avoid

• The landlord refuses to register Ejari.
• Payment requested to a third party.
• No Title Deed or Power of Attorney.
• Missing maintenance clause.
• No 90-day notice or renewal terms.

Any of these can void your protection under RERA law. DDA screens all contracts to prevent exposure.

FAQ

Can a landlord evict mid-contract?\
Only for legal reasons (non-payment, misuse, structural danger).

Can rent be paid monthly instead of cheques?\
Yes, via transfer or direct debit — if agreed in writing.

What happens if Ejari isn't renewed?\
Utilities may be disconnected, and the contract becomes unenforceable.

How long does Ejari registration take?\
Usually within 1-2 hours through DDA's digital channel.

Is there a grace period after move-out?\
Only if stated in the contract; otherwise daily rent may apply.

A tenancy contract in Dubai is more than a rental document — it's a legal safeguard that ensures stability, transparency, and trust in every lease.

Registered with Ejari, it gives both parties official recognition and full RERA protection.

At DDA Real Estate, we don't just sign leases — we manage them end-to-end: from drafting to renewal, ensuring every clause is compliant and every transaction secure.

Lease legally. Live confidently. With DDA Real Estate — your trusted partner for tenancy and property management in Dubai.