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Sun 27 Nov 2016 09:09 AM

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Dubai planning new law to resolve rental disputes, says DLD official

DLD set to launch publicity campaigns to inform tenants, landlords of their rights in 2017, said Mohammed Yahya

Dubai planning new law to resolve rental disputes, says DLD official

Dubai Land Department (DLD) is working on a new law to reduce disputes between landlords and tenants, a senior government official told Arabian Business.

“We are working on a new law that will make things simpler for landlords and tenants,” said Mohammed Ahmed Yahya, deputy CEO Rental Affairs Sector, DLD.

“When there is a dispute between a landlord and tenant, it takes quite some time as there are certain gaps in the existing laws. We are now working to close this gap between the landlord and the tenant,” he said, without giving any timeframe on when the law will be issued.

The landlord and tenant relationship in Dubai is regulated by Law No. 26 of 2007 as amended by Law No. 33 of 2008. Any dispute between the parties is referred to the Rental Dispute Settlement Centre, with either party having to pay 3.5 percent of the annual rent as non-refundable fee to open their case.

Yahya also ruled out plans to make any changes in Decree No. 43 of 2013 which governs the percentages of maximum property rent increase allowed on tenancy contract renewals.

A landlord is allowed to increase rents from five to 20 percent only if the leased unit's rent is between 10 percent and 40 percent lower than the average market rental rate.

The DLD is planning to launch publicity campaigns next year which will make landlords and tenants aware of their rental rights.

“There are landlords and tenants who have no idea of what their rights are. So in 2017, we will be launching campaigns to allow them to understand their rights and duties under the law,” Yahya said.

As of now, people can send their rental queries to the department to: rentals@dubailand.gov.ae.

All the real estate laws and regulations are available on DLD's website both in Arabic and English.

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