Dubai real estate: Are landlords issuing eviction notices to residents? Experts weigh in

How are Dubai landlords addressing tenants paying below RERA index rates, and what legal requirements must they follow when issuing eviction notices?

Dubai landlords are reportedly evicting tenants paying under the RERA rental index rate as they look to get more out of their properties during the market boom.

However, eviction notices must provide valid grounds as defined by tenancy law, such as the rebuilding or family use of home, experts told Arabian Business.

“Landlords are not restricted from serving an eviction notice on a tenant because they pay less than the RERA rental index rate. The reasons for the eviction notice, however, must be valid,” Rupert Simmonds.

Dubai landlords must provide tenants 12 months’ notice ahead of eviction

Landlord leniency towards lease violations have tightened, Savills UAE’s Head of Property Management Rachael Kennerley confirmed, adding that she has recently noticed a marked surge in eviction cases.

“Previous flexibility and payment plan solutions for rental arrears have gone, and legal action is now much more prompt. Given it is now a landlord market, landlords are not willing to accept tenants’ violations and will use these to evict tenants and regain vacant possession of a property to enable them to achieve current market rents,” she said.

According to Article 25 of Law No. (26) of 2007, 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 fails to pay the rent or any part thereof within thirty (30) days from the date of service of notice to pay on the tenant by the landlord;
• 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;
• Where the tenant uses the real property or allows others to use it for any illegal purpose or for a purpose which breaches public order or morals;
• Where the tenant makes a change to the real property that endangers its safety in a manner that makes it impossible to restore the real property to its original state, or damages the real property wilfully, or through gross negligence, by failing to exercise due diligence, or by allowing others to cause such damage;
• Where the tenant uses the real property for a purpose other than that for which the real property was let, or otherwise uses such real property in a manner that violates planning, construction, and use-of-land regulations in force in the emirate;
• Where the real property is condemned, provided that the landlord proves this by a technical report attested to by Dubai municipality, or;
• Where the tenant fails to observe any obligation imposed on him by this law or any of the lease contract terms within thirty (30) days from the date a notice to perform such obligation or term is served upon him by the landlord.

However, upon expiry of the lease contract, the landlord may seek eviction of the tenant from the real property if:

• A competent government entity requires demolition and reconstruction of the real property as per urban development requirements in the emirate;
• The real property is in a condition that requires full renovation or comprehensive maintenance that cannot be carried out in the presence of the tenant in the real property, provided that the condition of the real property is verified by virtue of a technical report attested to by Dubai Municipality;
• The landlord wishes to demolish the real property to reconstruct it or add any new constructions that will prevent the tenant from using the real property, provided that the landlord obtains the required permits from the competent entities; or
• The landlord wishes to repossess the real property for use by him personally or by any of his first-degree relatives.

However, for each of the above-mentioned four cases, the landlord must notify the tenant of the eviction reasons at least ninety (90) days prior to the expiry of the lease contract.

“Twelve months’ notice should be provided if there is no lease violation. For violation eviction cases, tenants may receive 30-90 days’ notice,” Kennerley said, adding that RERA clearly defines eviction and does so in order to protect tenants. “Tenants can file a RERA complaint at the Dubai Land Department’s Rent Disputes Settlement Centre.”

Specific Dubai areas with rents less than the RERA Rental Index rate

The rental index given by RERA is according to the area, Simmonds explained adding that the price will be depending on where the property is situated.

However, he explained that there are some places and buildings in Dubai where rents can be obtain lower than the rental rate on the RERA index.

“While the RERA Rental Index provides a guideline, actual rental prices can vary depending on the building’s age and condition, available amenities, location, and market demand. Notably, more affordable areas include older parts of Deira, Bur Dubai, and Karama, as well as more distant locations like International City Al Warsan, Production City, and Jumeirah Village Circle, among others,” he said.

Simmonds added that as more people are becoming homeowners instead of tenants, the number of properties available for rent in a specific area or building may decrease, unless new properties are also being made available.

“Over time, this can mean fewer rental properties to choose from in the same area or building, which can have an impact on the price and availability,” he said, adding that most landlords will adjust their pricing tactic according to the local property market and follow the guidance from their estate agent.

“A landlord is not permitted to evict a tenant to rent the property again at a higher price, circumventing the rental increase calculator,” he concluded.

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