Dubai landlords are reportedly evicting tenants who are paying rents below the RERA rental index rate.
In Dubai, landlords are reportedly evicting tenants who pay less than the RERA rental index rate to capitalize on the booming property market. However, eviction notices must comply with tenancy laws, requiring valid grounds such as rebuilding or family use, 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,” said Rupert Simmonds, Director of Leasing at Betterhomes.
Legal Requirements for Eviction Notices
Dubai landlords must provide tenants with a 12-month notice before eviction. Leniency towards lease violations has decreased, according to Savills UAE’s Head of Property Management, Rachael Kennerley, who has observed a rise 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.
Grounds for Eviction
According to Article 25 of Law No. (26) of 2007, landlords may seek tenant eviction for several reasons:
- Non-payment of rent within 30 days of notice.
- Sub-letting without written approval.
- Illegal use of the property.
- Changes to the property that endanger its safety.
- Use of the property contrary to lease terms.
- Property condemnation verified by Dubai Municipality.
- Failure to observe lease obligations within 30 days of notice.
Upon lease expiry, landlords may evict tenants if:
- Demolition and reconstruction are required by a government entity.
- The property needs full renovation.
- The landlord wishes to demolish or reconstruct the property.
- The landlord or their first-degree relative needs to use the property.
For these cases, the landlord must notify the tenant at least 90 days before lease expiry. “Twelve months’ notice should be provided if there is no lease violation. For violation eviction cases, tenants may receive 30-90 days’ notice,” Kennerley added.
RERA Complaints and Rent Disputes
Kennerley emphasized that RERA clearly defines eviction to protect tenants. “Tenants can file a RERA complaint at the Dubai Land Department’s Rent Disputes Settlement Centre.”
Areas with Lower Rents
The rental index given by RERA varies by area, explained Simmonds. Some locations offer rents below the RERA index, including older parts of Deira, Bur Dubai, and Karama, as well as International City Al Warsan, Production City, and Jumeirah Village Circle.
“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,” he said. As more people become homeowners, rental property availability in specific areas may decrease unless new properties are added.
Simmonds concluded that a landlord cannot evict a tenant to rent the property again at a higher price, bypassing the rental increase calculator.
