Subletting Apartments in Dubai: What Every Tenant Should Know

Dubai’s rental market provides provisions for many people to rent or lease properties. Renting a property in Dubai is governed by certain rules and regulations that must be followed by both the tenants and landlords.

Key Rules and Regulations Concerning Renting

• Registering the Agreement - It is mandatory for the tenant to get the tenancy contract or agreement registered under the RERA through the  Ejari system.
• Rent Increase Legislation - As per the Dubai New RERA Rental Index, the landlord is required to inform the tenants of any rental increase prior to a period of 90 days. This helps in maintaining fair rents and protects the tenants against sudden increase in pricing.
• Tenancy Contract - A written tenancy contract is required to be agreed upon between the landlords and tenants. This contract is usually for a fixed term of 1 year and can be renewed.
• Security Deposit - A security deposit is required, which is usually 5% of annual rent for unfurnished properties and 10% for furnished ones, and is refunded at the end of tenancy.
• Property Maintenance - The tenants must maintain the property in a good and reasonable condition, and the landlords can inspect the property at any time to ensure that necessary conditions are met and look out for any major repairs if required.

Dubai offers a diverse range of apartment options for its people to enjoy a luxurious and comfortable life, incorporating world-class infrastructure and over-the-top amenities and facilities.

Types of Apartment Options in Dubai

Apartment Type	Overview of the proper	Ideal For	Size
Studio Apartments	It is a single-room unit comprising an open living space, a kitchen, and a separate bathroom	Singles, students, and short-term renters	Ranging from 300 to 700 square feet
1-Bedroom Apartments	This residential unit consists of a separate one-bedroom, a living area, a kitchen, and a bathroom	Singles, couples, and young professionals	Ranging from 700 to 1300 square feet
2-Bedroom Apartments	These residences offer two separate bedrooms with spacious living spaces and kitchen areas.	Small or nuclear families, professionals, and expatriates	Ranging from 1350 to 2000 square feet
3-Bedroom Apartments	It is a type of apartment that comprises three bedrooms, a kitchen, and an abundant living area for a comfortable livelihood	Families, larger groups, and individuals	Ranging from 1600 to 2500 square feet. May vary depending on the location
Duplex Apartments	This is a two-level apartment connected by an internal staircase	Families or people seeking a more spacious and private life	Ranging from 500 to 2160 square feet
Loft Apartments	These are open-plan apartments that feature open floor plans, high ceilings, and large windows	Artists, couples seeking contemporary designs, and working professionals	Ranging from 700 to over 2000 square feet, with some even exceeding 6000 square feet
Penthouse Apartments	Luxury units on the top floors with panoramic views and exceptional amenities	High-net-worth individuals, luxury seekers, and investment-oriented buyers	Typically range from 5000 to 10000 square feet, but some luxurious and large penthouses may range up to 77000 square feet
Serviced Apartments	These are fully furnished residential units with hotel-like amenities and a variety of services	Business travelers, tourists, and expats	Available in the studio to 3-bedroom apartments

Subletting Apartments in Dubai

Subletting an apartment means renting the apartment by an already residing tenant to another person. Subletting apartments in Dubai requires the written permission from the landlord and must be done within the provisions of the tenancy agreement and the laws governing the tenant agreements. Sharing a rented apartment without the approval of the landlord is considered illegal, and this breach of contract can lead to eviction of both the tenants and the sub-tenants.

Subletting an apartment is done mainly in two conditions:

• When an institution or agency gets the lease for a building and further rents it out to multiple tenants, each done as per the subletting agreements or contracts.
• When a pre-existing tenant sublets a section or part of its property on lease to a third party for several reasons, but mainly financial pressure or instability.

A tenant holding a residence visa may opt to rent out or sublet the apartment to a third party, but after obtaining approval from the tenant as per the established laws. Let’s take a look at some of the significant benefits associated with the same:

• Legal Ability and Permission to Sublet - A residence visa provides the tenant with the legal ability to get permission from the landlord to sublet their apartment.
• Access to Ejari Registration - Registering in the Ejari system under the RERA is a prerequisite for any legal rental subletting transaction. Only residents and people possessing a residence visa can access the Ejari registration.
• Security and Legal Protection - Owning a residence visa provides an individual access to Dubai’s rental dispute center in case of any subletting issue.
• Opening Bank Accounts for Payments - Residence Visa holders can open bank accounts in the UAE, making it easier for them to collect rental income and accept payments via bank transfers. 
• Building Trust between Landlords and Tenants - Landlords often prefer tenants holding a residence visa, as it is more feasible to verify such people and confirm their identities, therefore making it easier for the tenants to get approval from the landlords for subletting the apartments.

Two main laws regulate and administer the relationship between landlords and tenants in the Emirate of Dubai. Law No. (26) of 2007 and Law No. (33) of 2008, amending Law No. (26) of 2007, provide a set of articles that impart rules and regulations for landlords and tenants. 

Law No. (26) of 2007 

Article (1)—This law will be cited as "Law No.( 26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai."

Article (2)—In implementing the provisions of the law, certain terms are used, whose definitions and meanings are indicated:

A. Emirate:  The Emirate of Dubai

B. RERA: The Real Estate Regulatory Agency

C. Real Property: Immovable property annexed to it which is leased out for accommodation or conducting a business activity, trade, profession, or any other lawful activity.

D. Lease Contract: It is a contract by which the landlord is bound to allow the tenant to use the real property for a specific purpose, over a specific term, and under specific consideration.

E. Landlord: A natural or legal person entitled by the law to dispose of real property. It also includes a person to whom ownership of the real property is transferred during the term of a lease contract, an agent or legal representative of the landlord, or a tenant permitted by the landlord to sublet the real property.

F. Tenant: A natural or legal person entitled to use real property under a lease contract, or any person to whom the lease is legally transferred from the tenant.

G. Subtenant: A natural or legal person entitled to use the real property or any part thereof under a lease contract entered into with the tenant.

H. Rent: The specified consideration that the tenant will be bound to pay by the lease contract.

I. Tribunal: The Special Tribunal for settling disputes between landlords and tenants.

J. Notice: A written notification sent by either party to the lease contract to the other through a notary public, by registered post, or by any other technological means approved by law.

Article (3) - The provisions of this Law will apply to real property leased out in the Emirate, including vacant and agricultural lands, but excluding hotel establishments and real property provided by natural or legal persons as accommodation to their employees at no charge.

Article (4) - Provisions for the lease contract
Articles (5) to (8) - Provisions for the terms of the lease contract
Articles (9) to (14) - Regulations regarding the rent
Articles (15) to (18) - Regulations relating to the landlord’s obligations
Articles (19) to (24) - Regulations relating to the tenant’s obligations
Article (25) - Provisions related to eviction of the tenant from the real property.

1. The Landlord may evict the tenant from the real property before the expiry of the lease contract term in the following cases: 

A. Where the tenant fails to pay the rent or any part thereof within thirty (30) days from the date of service of notice by the landlord; 

B. Where the tenant sublets 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.

C. Where the tenant uses the real property or allows others to use it for any illegal purpose or a purpose that breaches public order or morals.

D. Where the tenant makes a change to the real property that endangers its safety in a manner that is impossible to restore it to its original state, or damages the real property willfully, through gross negligence, by failing to exercise due diligence, or by allowing others to cause such damage.

E. Where the tenant uses the real property for a purpose other than that for which the real property was let, or uses such real property in a manner that violates planning, construction, and use-of-land regulations in force in the Emirate.

F. Where the real property is condemned, provided that the landlord proves this by a technical report attested to by Dubai Municipality.

G. 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.

    2.  On expiry of the lease contract, the landlord may seek eviction of the tenant from the real property if: 

A. A competent government entity requires demolition and reconstruction of the real property as per urban development requirements in the emirate.

B. The real property requires full renovation or maintenance that cannot be carried out in the presence of the tenant, provided that the condition of the real property is verified under a technical report attested to by Dubai Municipality.

C. 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.

D. The landlord wishes to repossess the real property for use by him or any of his first-degree relatives.

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

Article (26) - On expiry of the lease contract, the landlord requests possession of the real property for his personal use or use by any of his first-degree relatives and gets such possession by the Tribunal, then the landlord may not rent the real property to a third party before at least one (1) calendar year from the date of repossessing the real property, otherwise, the tenant may be awarded appropriate compensation on request.

Law No. (33) of 2008 Amending Law No. (26) of 2007

Article (1)—Articles (2), (3), (4), (9), (13), (14), (15), (25), (26), (29), and (36) of the Original Law are superseded and the new Articles are implemented in this law.

For example, the eviction cases were transformed as follows:

Article (25) 

1. A landlord may request eviction of the tenant from the real property before the expiry of the lease contract only in the following cases:

A. Where the tenant fails to pay the rent or any part thereof within thirty (30) days from the date of service of a notice on the tenant by the landlord requesting the payment.

B. Where the tenant sublets the real property or any part thereof without obtaining the landlord's written approval, in this case, the eviction will apply to the tenant and to the subtenant, who will reserve the right to claim compensation from the tenant.

C. Where the tenant uses the real property or allows others to use it for any illegal purpose or a purpose that conflicts with public order or morals.

D. Unless otherwise agreed by the parties, where the leased real property is used as business premises and the tenant leaves it unoccupied without a valid reason for thirty (30) consecutive days or ninety (90) non-consecutive days in a year.

E. Where the tenant makes any change to the real property that endangers its safety that is impossible to restore it to its original state or causes damage to the real property as a result of his deliberate act or through his gross negligence by failing to exercise due caution and care or allowing others to cause that damage.

F. Where the tenant uses the real property for a purpose other than that for which it is leased or otherwise uses the real property in a manner that violates the planning, construction, and land use regulations in force in the Emirate.

G. Where the real property is likely to collapse, provided that the landlord proves this by a technical report certified by the Dubai Municipality.

H. Where the tenant fails to comply with any of his obligations under this law or any of the lease contract terms within thirty (30) days from the date of the notice requesting him to comply with that obligation or term is served upon him by the landlord.

I. Where the competent government entities decide that the demolition and reconstruction of the Real Property are mandated following the urban development requirements in the emirate.

For paragraph (1) of this Article, the landlord will serve a notice on the tenant through a notary public or by registered mail.

      2. On expiry of the lease contract, the landlord may seek eviction of the tenant from the real property if:

A. The real property owner wishes to demolish and reconstruct it or add any new structures, preventing the tenant from using the real property, provided that the owner obtains the required permits from the competent entities.

B. The real property requires restoration or maintenance that cannot be carried out while the tenant occupies the real property, provided that the condition of the real property is verified by a technical report certified by the Dubai Municipality.

C. The real property owner wishes to retake possession of the real property for his use or use by any of his first-degree relatives, provided that the owner proves that he does not own any alternative real property.

D. The leased real property owner wishes to sell it.

For paragraph (2) of this Article, the Landlord must notify the tenant of the eviction reasons at least twelve (12) months before the date of eviction, and the notice must be served through a notary public or by registered mail.

Article (26)—Where the Tribunal rules in favour of the landlord retaking possession of the real property for his use or use by any of his first-degree relatives, following sub-paragraph (2)(c) of Article (25) of this Law, the landlord may not rent the real property to a third party before at least two (2) years in case of residential real property, or three (3) years in case of non-residential real property, from the date of retaking possession of the same, otherwise, the tenant may request the Tribunal to award him appropriate compensation.

In the luxurious city of the future, Dubai, tenants can sublet their properties for reasons such as to reduce the financial pressure and instability faced by them, but this should be done after the approval of the landlord. The entire process must be done under the rules and regulations provided in Law No. (26) of 2007 and Law No. (33) of 2008, amending Law No. (26) of 2007 governing the relationship between the tenants and landlords.

While the prime benefits of subletting apartments are financial assistance but it also serves various other significant advantages, such as generating a potential income, flexibility, and helping avoid vacancies, which is beneficial for both the landlords and the tenants.