Sub-leasing refers to the practice whereby a renter leases property from a landlord and rents it to a third party. Sub-leasing in Dubai is strictly governed by laws and regulations.
If a tenant wants to sub-lease a commercial or residential property to other people in Dubai, certain regulations need to be followed. This article aims to clear any doubts regarding sub-leasing and related laws.
Understanding Sub-Leasing in Dubai for Tenants
Dubai observes strict laws to protect tenant and landlord rights while sub-leasing in Dubai. If a resident has leased out a property and aims to sub-Lease in Dubai, they have to read up on its pertaining rules and regulations.
Sub-leasing allows a tenant to share the property with a third-party tenant in case of availability of space. The one on the sub-lease is referred to as the subtenant and is answerable to the sub-lessor.
Laws Regarding the Lease Contract
The Law No. (26) of 2007 was announced to regulate the relationship between landlords and tenants in Dubai. As per its clauses, article 4 states:
- Any leased property requires a written Lease Contract signed mutually between the tenant and landlord.
- All lease contracts related to Real Property are to be registered with RERA.
Sub-Lease Contract Expiry
The term of a sub-lease contract assigned between the tenant and the sub-tenant expires when the original rental contract expires. The original rental contract is signed between the first tenant and landlord.
However, if the landlord agrees to extend the term of the sub-lease contract, the term will automatically be extended for all three parties.
The Legality of Sub-Leasing
As per Article 24, sub-leasing in Dubai is illegal or otherwise agreed upon by both parties according to the registered Ejari contract. The tenant is not allowed to sign the use of or to sub-lease the real property to other subtenants unless the written consent of the landlord is provided.
Chances of Eviction
New property landlords are allowed to evict tenants for several reasons. They can range from failing to pay rent within 30 days, using the property for illegal reasons or the tenant refusing to fulfil their obligations set by their lease contract.
The chances of eviction while sub-leasing in Dubai is based on the following terms:
- If the tenant decides to sub-let the real property or any area from it without obtaining the written approval of the landlord.
- If this is to occur, the sub-lessee is given an eviction notice and has the right to obtain compensation from the tenant.
This is carried out to protect the sub-tenant’s rights and to allow them to gain any compensation for damages directly from the tenant. Besides, the renter or landlord must register co-occupants on Ejari to ensure their rights.
Termination of Lease Contract
As per Article 30, the committee can order the termination of the lease contract while the real property is still occupied by the sub-tenant. When that happens, the sub-tenant is allowed to continue living in the residential premises under the original terms of the Sublease contract.
This is done mainly to protect the sub-tenant’s rights and to give them grace time to find another place before moving out.
Laws That Apply to Sub-Tenants
After leasing out a property from the original tenant, the sub-tenant falls under the same category and has to follow the same rules as the original lessee. Some important clauses are listed below.
The Rent
Here are the rent clauses that the tenants must follow when sub-leasing in Dubai:
- The landlord and tenant should specify the rent in their lease contract and cannot be changed before 2 years from the original date.
- The rent covers the use of properties in the residential premises such as swimming pools, gyms, health clubs and car parks.
- Tenants must pay the rent in Dubai on agreed time.
- If either party does not want to renew the lease contract, it must be informed 90 days before the contract expires.
Landlord’s Obligations
There are certain obligations that the landlord has to fulfil for the sub-tenant, listed below:
- The landlord is required to give the property in good condition and it should not have any issues beforehand.
- The landlord is also responsible for any maintenance work for the tenant.
- The tenant should be provided with the approvals in case of decoration work by the landlord.
Tenant’s Obligations
As the sub-lessee, the same clauses are used as the original tenant:
- The tenant should pay rent on the due dates and needs to maintain the upkeep of the premises at all times.
- When entering a lease contract, a security deposit (refundable) is taken to ensure the maintenance of the real property.
- Once the lease contract ends, the tenant needs to hand over the property to the landlord in original condition.
- The lessee must pay all taxes required from the Dubai government unless stated otherwise by the lease contract.
- The lessee cannot remove any leasehold improvements upon handing over the property unless agreed otherwise.
Eviction Cases
The landlord can hand over an eviction notice under these clauses:
- If the tenant fails to pay rent within 30 days.
- If the property is used illegally.
- If changes are made to the property that question it’s safety.
- If the tenant does not fulfil an obligation imposed upon them.
FAQs
Here is the main difference between a sub-letting contract and Sub-leasing:
– Sub-letting is when a tenant rents out a part of the property to a third party with the original lease contract still active.
– Sub-leasing refers to the tenant becoming the sub-lessor and leasing out the rented property to a sub-tenant.
According to article 24 in Law No. (26) of 2007, the tenant can only sub-lease the apartment with written approval from the landlord in Dubai. Otherwise, it is considered illegal.
Covering all important clauses, including rent and eviction, and knowing the rules before signing a tenancy contract is important for sub-leasing in Dubai. Whether you’re a tenant or landlord, understanding these regulations can make or break your leasing experience.
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