# Rentals under Dubai law: renewal, eviction, increases, disputes > Rentals in Dubai are governed by Law No. 26/2007 (as amended by Law No. 33/2008), Decree No. 43/2013 (the cap on rent increases according to the index)… Page: https://continentalclub.ae/dld-broker-exam-practice/study-guide/rental-law/ · updated 2026-10-27 · Continental Club Property LLC, Dubai real estate brokerage, RERA ORN 31933 A study guide for the DLD broker exam. Not official DLD material; DLD does not publish the exam format — details are based on our brokers' experience. Updated: 14 Oct 2026. [All guides](/dld-broker-exam-practice/study-guide/) · [Glossary](/dubai-real-estate-glossary/) **In brief:** Rentals in Dubai are governed by Law No. 26/2007 (as amended by Law No. 33/2008), Decree No. 43/2013 (the cap on rent increases according to the index) and Decree No. 26/2013 (Rent Disputes Centre, RDC). The key figures for the exam and work: notice of a change in terms must be given **90 days** in advance; eviction for non-payment is possible **30 days** after notice; eviction upon expiry of the term (for personal use, sale, or reconstruction) is possible only with **12 months’** notice through a notary or by registered mail. The sale of a property does not terminate the lease, disputes go to the RDC, and the contract is registered in Ejari. The agency’s practice is described in Rentals: Ejari, contract, parties’ rights, Rental Index, short-term rentals; this article explains what the law itself says and where they differ. ## Contract and registration - **The contract** (Law No. 26/2007, Art. 4 as amended by Law No. 33/2008) must clearly describe the property, purpose of the lease, term, rent, and payment method, and, if the Landlord is not the owner, the owner’s name. The contract and all its amendments are registered (in the law — “with RERA”, today this is Ejari, a DLD service). In the exam: “the tenancy contract must be registered in Ejari to be valid” — True. - **Rent not specified** — the rent for comparable properties applies; the Tribunal considers RERA’s increase criteria, the condition of the property, and the average rent in the area (Art. 9). - **For registration in Ejari**, the Tenant’s Emirates ID and the original unified contract are required, among other documents; **NOC is not required**. Not to be confused with an NOC for publishing a listing (see NOC: what it is, timelines, refusal when selling at a loss, three levels of blocking, restricted status). - **Verification of the owner** is mandatory for rentals as well, not only for sales. - The Security Deposit and payment procedure are according to the contract; cheques, commission, and step-by-step processing are in Rentals: Ejari, contract, parties’ rights, Rental Index, short-term rentals. ## Obligations of the parties | Who | What the law provides | Article | | --- | --- | --- | | Landlord | Hand over the property in a condition allowing full use | Art. 15 (2008 amendment) | | Landlord | **Maintenance and repair** of any defects affecting use, unless otherwise agreed | Art. 16 | | Landlord | Is responsible for wear and damage not caused by the Tenant; may not make changes that interfere with use | Art. 17 | | Landlord | Issue approvals for government authorities if the Tenant carries out fit-out works not affecting the structure | Art. 18 | | Tenant | Pay on time, take care of the property as their own; make no changes or repairs without permission | Art. 19 | | Tenant | Return the property in the condition at move-in, except for normal wear and tear | Art. 21 | | Tenant | Pay government fees and taxes for use (unless the contract states otherwise) | Art. 22 | | Tenant | May not remove improvements upon moving out (unless otherwise agreed) | Art. 23 | | Tenant | **Must not sublease or transfer use without the Landlord’s written consent** | Art. 24 | For the exam: “not a Tenant’s obligation” — repair and maintenance of the property. The law’s qualification is: “unless the parties agree otherwise”, so repairs may be shifted in the contract. **Security Deposit** (Art. 20). The Landlord “may receive” a Security Deposit to ensure the preservation of the property and must return the balance upon expiry of the contract. **The law does not limit** or specify the amount. “One month or half a month” and 5%/10% are market practice, not a legal rule. ## Sublease Subleasing without the Landlord’s written consent is prohibited (Art. 24; — False). A breach is grounds for evicting **both the Tenant and the subtenant** (Art. 25(1)); the subtenant retains the right to compensation from the Tenant. If the consent is in writing, the subtenant may remain in the property, but the sublease term ends together with the main contract unless the Landlord expressly extends it (Art. 8). A sublease (sublease) is when a Tenant leases to a Tenant. ## Renewal and changes to terms - **It cannot be terminated unilaterally** during the contract term — only by agreement of the parties or by law (Art. 7). - **Automatic renewal.** If the term has expired and the Tenant remains without objection from the Landlord, the contract is renewed for the same term or for one year — whichever is shorter (Art. 6). A “contract is not renewed” clause does not work: the lease is always renewed by law, and eviction is possible only on the grounds provided by law. - **Terms or rent may be changed** upon renewal by agreement; either party wishing to make changes must notify the other **at least 90 days** before the end of the contract (Art. 13–14 as amended in 2008). If no agreement is reached, the Tribunal (RDC) determines the rent under the criteria of Art. 9. The statement “30 days” is incorrect. - If the Landlord is silent and the Tenant needs Ejari for renewal, the Tenant goes to the RDC system: submits a request through the offers and deposit request service, rather than sending a legal notice or abandoning the property. ## Rent increase: Decree No. 43/2013 Upon renewal, the maximum increase depends on how much the current rent is below the average market rent under the **RERA Rental Index** (Decree No. 43/2013, Art. 1 and 3; it also applies in free zones and DIFC, Art. 2): | Rent below the average market rent by | Maximum increase | | --- | --- | | no more than 10% | 0% (no increase allowed) | | 11–20% | 5% | | 21–30% | 10% | | 31–40% | 15% | | more than 40% | 20% | The 10/11% threshold is interpreted differently in secondary sources; the text of the Decree states “no more than 10%” with no increase. There is no restriction on the **first** lease of a property. **Rental Index and rental valuation.** The new rent is determined by the Rental Index and, if the parties disagree, by **rental valuation**. The valuation result is a “private rental index” (private rental index). An owner who considers the increase under the index understated submits a valuation application through the Ejari system. There is no lower rent limit for commercial property: the parties decide. **Smart Rental Index 2025.** From 02.01.2025, DLD applies Smart Rental Index 2025: building classification and registered Ejari contracts provide the average market rent, while the percentage increase upon renewal remains within the 0–20% range according to the difference between the current and average market rent (source: DLD news and index FAQ). The DLD news refers to “Decree No. 34 of 2013”, rather than 43/2013; we have not verified its relationship with Decree No. 43/2013. For the exam, until the question bank provides otherwise, use the Decree No. 43/2013 table above. Details are in the article Smart Rental Index 2025 and rent increase rules. ## Eviction A Tenant may be evicted only in the cases provided by law; a claim does not release the Tenant from rent throughout the proceedings (Art. 31), and the Landlord may not disconnect services (Art. 34). **During the contract term (Art. 25(1) as amended in 2008)** — notice through a notary or by registered mail (Notice) and the following grounds: - non-payment of rent within **30 days** after notice to pay; - subleasing without written consent; - use of the property for unlawful purposes or contrary to public order; - a commercial property is vacant for 30 consecutive days or 90 days in total per year without reason; - unsafe alterations or intentional damage; - use other than for the designated purpose or in breach of planning rules; - the property is declared unsafe (municipality report); - another breach of law or contract not remedied within 30 days after notice; - an authority’s requirement to demolish or reconstruct the property. **Upon expiry of the term (Art. 25(2))** — only four grounds, and notice of the ground must be given **12 months** before the eviction date (notary or registered mail): 1. demolition or reconstruction with permits; 2. major repairs impossible with the Tenant present (municipality report); 3. the owner wishes to live there personally or accommodate a **first-degree** relative, proving that no other suitable property is available; 4. the owner wishes to **sell** the property. “To lease to a new Tenant at a higher rent” is not a ground. If the property is recovered for the owner or a relative, it may not be leased to third parties for 2 years (residential) or 3 years (non-residential) — otherwise the Tenant may claim compensation (Art. 26). After reconstruction, the Tenant has a right of first refusal to lease within 30 days of notice (Art. 29). **90 days and 12 months are different periods:** 90 days is notice of changes to terms; 12 months is eviction under Art. 25(2). ## Sale of a property with a Tenant - **A change of owner does not terminate the lease** if the contract has a fixed term (Art. 28). The new owner is the “Landlord” under the definition in the law. - If the seller wishes to sell with vacant possession, they must use the procedure under Art. 25(2): 12 months’ notice. - **Rent for the sale period** is divided between the seller and buyer **in proportion to the period of ownership** during the lease term. No direct article of Law No. 26/2007 for this rule was found in the downloaded texts — we rely on exam experience. ## Disputes: RDC and arbitration - **Rent Disputes Centre** has **exclusive jurisdiction** over Landlord and Tenant disputes in Dubai and free zones (Decree No. 26/2013, Art. 6(a)), including counterclaims and urgent measures. The structure comprises: mediation and conciliation, first instance, appeal, enforcement (Art. 7). - Types of cases: financial claims and eviction; a rent dispute and an eviction or collection claim concerning returned rent cheques — also RDC. - **Arbitration** is possible if the parties agree to it. The police, notary, and DLD itself do not resolve the dispute. - RDC does not consider disputes in zones with their own court, lease finance, and long-term lease under Law No. 7/2006 (Art. 6(b)). ## Free month: what is more beneficial for the Landlord 13 months’ rent for the price of 12 is a 1/13 ≈ 7.7% discount. A 5% discount from the annual rent is better for the Landlord; 8.5% and “a free month” are worse. ## Municipality fee (housing fee) ## Common mistakes - Confusing 90 days (change of terms) and 12 months (eviction for sale/personal use) → invalid notice, loss at RDC → two different periods, different grounds. - Considering a “not renewed” contract clause valid → eviction is not possible on that basis → only under Art. 25. - Notifying the Tenant by ordinary mail or messenger → risk that the notice will not be recognised → notary or registered mail. - Telling the owner that the rent increase “at market rate” is unrestricted → Decree No. 43/2013 sets the cap upon renewal. - Calling the Security Deposit “5% by law” → there is no limit in the law. ## What to tell the client “A property can be sold with a Tenant — the lease transfers to the new owner. If the property needs to be vacated for sale, the law requires notifying the Tenant 12 months in advance through a notary. The rent can be increased upon renewal only within the limits of the RERA index table and with 90 days’ notice”. ## Test yourself **1. How many days in advance must a Tenant be notified of a rent change upon renewal?** A) 30 B) 60 C) 90 D) 12 months **Answer** C. Law No. 26/2007, Art. 14 (2008 amendment): at least 90 days before the end of the contract. 12 months is eviction under Art. 25(2); 30 days is a false exam option. **2. The owner wants to sell a property with vacant possession. What notice is required for the Tenant?** A) 30 days in advance, letter by mail B) 90 days in advance, through Ejari C) 12 months in advance, through a notary or by registered mail D) none, the lease terminates upon sale **Answer** C. Art. 25(2)(d) and the last paragraph of Art. 25(2). The sale itself does not terminate the lease (Art. 28). **3. A Tenant’s rent is 25% below the average under the RERA index. What is the maximum increase upon renewal?** A) 0% B) 5% C) 10% D) 15% **Answer** C. Decree No. 43/2013, Art. 1: 21–30% below market — up to 10%. If the rent is up to 10% below market, it may not be increased; 11–20% — 5%, 31–40% — 15%, above 40% — 20%. **4. What is NOT a Tenant’s obligation if the contract does not provide otherwise?** A) repair and maintenance of the property B) pay rent C) return the property in the condition at move-in, except for wear and tear D) pay utility charges **Answer** A. Maintenance and repair are the Landlord’s responsibility (Art. 16); the Tenant bears the rest (Art. 19, 21, 22). Exam answer. **5. A Tenant subleased a property with the owner’s written consent. What is correct?** A) the owner may evict the Tenant B) the owner may evict the subtenant C) the subtenant may remain in the property D) subleasing is always without consent **Answer** C. Without written consent, subleasing is grounds for eviction of both parties (Art. 25(1)); with consent, it is not. However, the sublease term ends together with the main contract (Art. 8). **6. Where should the parties apply if they cannot resolve a rent dispute themselves?** A) police B) DLD C) notary D) Rent Disputes Centre (or arbitration, if the parties agreed) **Answer** D. Decree No. 26/2013, Art. 6(a): RDC has exclusive jurisdiction over rental disputes in Dubai; arbitration is only by agreement of the parties. ## See also - Rentals: Ejari, contract, parties’ rights, Rental Index, short-term rentals - NOC: what it is, timelines, refusal when selling at a loss, three levels of blocking, restricted status - [DLD, trustee and other fees: table](/dld-broker-exam-practice/study-guide/dld-fees-table/) Preparing for the DLD exam? 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