Statutory Rights to Evict a Tenant in Dubai
Contract termination provisions available to a Landlord.
A landlord or tenant may terminate a lease (tenancy contract) under contractual provisions that have been expressly agreed between them. Depending on what has been agreed, there may be a landlord-only break option, a tenant-only break option or a mutual break option whereby either party can terminate the contract subject to conditions being met.
Alternatively, there may be statutory provisions that allow such a termination by a landlord are discussed below.
Law No. 26 of 2007 Regulating the Relationship Between Landlords and Tenants
in the Emirate of Dubai, as amended by Law No. 33 of 2008.
Eviction of the Tenant during the term of the Lease.
Article 25(1) of the amendment stipulates grounds on which a landlord can evict a tenant prior to the expiry of the lease term. A landlord can demand the eviction of a tenant prior to the expiry of the tenancy contract by serving notice on the tenant. Note: In recent Court cases, judges have insisted that the Notice must be served by Notary Public or Registered Post so that it is registered at Dubai Court.
The grounds for termination are:
(a) The tenant fails to pay rent within 30 days of the landlord’s payment notification, unless there are other time frames agreed.
(b) The tenant subleases the property or any part of it without the landlord’s written approval. Eviction shall apply both to the tenant and the subtenant, and the subtenant can claim compensation from the tenant.
(c) The tenant uses or allows others to use the property for illegal or immoral activities.
(d) The tenant has left a commercial property unoccupied for 30 consecutive days or 90 non-consecutive days in one year, unless otherwise agreed.
(e) The tenant causes intentional damage or irreparable changes that endanger the property’s safety, or due to the tenant’s gross negligence to take proper precautions the tenant allows others to cause such damage.
(f) A tenant uses the property for non-permitted uses.
(g) The property is condemned, provided the landlord must prove such condition by a technical report issued or accredited by the Dubai Municipality.
(h) The tenant fails to observe legal obligations or tenancy contract conditions within 30 days from the date of the landlord’s breach notification.
(i) Development requirements in the emirate require demolition and reconstruction of the property in accordance with government authorities’ instructions.
If the Landlord wishes to exercise this right to terminate, the Landlord must give the Tenant written notice through the Notary Public or registered mail. The notice must state which of the above categories applies. Should the Tenant not accept the legal grounds contained in the notice and the Tenant refuses to vacate, the Landlord may file a case with the Rental Dispute Settlement Centre (RDC) to determine the validity of the notice and for the Tenant to submit a case in reply. The RDC will consider the case and then make the appropriate orders, provided the lease agreement is registered in the Ejari system.
Eviction of the Tenant upon expiry of the term of the Lease.
Article 25(2) deals with a scenario whereby a landlord may request eviction of a tenant upon expiry of the lease term.
Here a tenant must be notified by way of a notice sent through the Notary Public or by Registered Mail at least 12 months (365 days) prior to the proposed date of eviction.
The grounds are:
(a) The owner wishes to demolish the property or add new constructions that prevent the tenant from enjoying the property, provided that the landlord obtains the necessary licences for such construction.
(b) The property requires renovation or heavy maintenance, which cannot be executed while the tenant is occupying the property, provided that a technical report is issued or accredited by the Dubai Municipality.
(c) The owner wishes to use the property personally or by a next of kin of first degree, provided there is no suitable alternative property for that purpose. In such circumstances, a landlord may not rent out the property for at least a further two years for residential property and three years for non-residential property. The Tenant may claim compensation from the landlord through the RDC for a breach of this provision, if the premises is leased out earlier.
(d) The owner wishes to sell the property.
Civil Law
Some landlords may also consider terminating a contract under the provisions of the Civil Code if the tenant has failed to comply with obligations. For example, a landlord may serve notice to terminate if the tenant has not undertaken certain works by a set date. The landlord will need to serve a recorded notice and provide evidence of such non-compliance. It must be assumed that by serving such notice does not mean that the lease will be automatically terminated. A tenant could also seek to terminate a contract if the landlord was under an obligation to do something and failed to do so.
As demonstrated above, a landlord may have a number of options to terminate a lease whereas a tenant will have less. In all cases, a landlord should always seek expert advice on how to properly terminate a lease. In recent Court cases, judges have insisted that the Notice must be served by Notary Public or Registered Post so that it is registered at Dubai Court.