UAE Property: ‘What are the consequences if I sub-let my rented apartment?’

The Deira district of Dubai. Some tenancy contracts expressly forbid subleases. Getty Images

Question: I want to try to make a business from my rented apartment but have heard that this may be illegal. What are the consequences if I sub-let my apartment without written permission, and how can I do it correctly? BM, Dubai

Answer: As per Article 24 of Law 26/2007, any form of subleasing or assignment requires prior written consent from the landlord and a registered sublease Ejari, otherwise it constitutes a material breach.

Common repercussions include eviction proceedings where the landlord can file for eviction of both the original tenant and the unauthorised subtenant. Another one could be security deposit forfeiture as funds are often used to cover legal fees or administrative costs associated with any eviction.

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Lastly, there could be service disruptions because Ejari records tie into Dubai Electricity and Water Authority (Dewa) and telecom or internet applications, resulting in utilities for an unregistered subtenant being potentially blocked, leading to abrupt disconnections.

If you want to sub-let legally, I suggest you firstly read your tenancy contract because some contracts expressly forbid subleases. If yours does, renegotiation with the landlord is the only path.

But in any case, submit a formal request to the landlord and provide details of the prospective subtenant (passport, Emirates ID) and intended lease term. It may be helpful to invite the landlord into your new agreement in order to share any potential income.

Draft an addendum specifying the rent amount, the duration and all responsibilities, for all parties to sign. Register with Ejari by submitting the addendum and landlord’s approval to the Ejari portal. Once registered, the sublease is fully recognised and Dewa, telecoms, internet and A/C can be transferred seamlessly.

By following a transparent process, tenants preserve their security deposit, avoid legal disputes and maintain access to uninterrupted services.

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Q: My landlord has applied a rent increase above the Real Estate Regulatory Authority-index cap. If I refuse to pay the higher rate, can they evict me? DK, Dubai

A: Under the updated Dubai Land Department rental index, landlords may raise rent only within prescribed bands, based on how far the existing rent falls below current market value. This can be checked legally using the DLD website or going on the Dubai Rest Application.

• 0 per cent to 10 per cent below market: no rent increase
• 11 per cent to 20 per cent below market: up to 5 per cent increase
• 21 per cent to 30 per cent below market: up to 10 per cent increase
• 31 per cent to 40 per cent below market: up to 15 per cent increase
• Above 40 per cent below market: up to 20 per cent increase

If the landlord has given you the necessary 90 days’ notice from the date of renewal to change the contract and if the proposed rent increase does not exceed these caps, you are legally bound to accept or risk non-payment, falling under an eviction ground. If he has not provided the 90 days’ notice, any increase allowed or not would not be valid anyway.

Let us assume he gave you the 90 days’ notice but the rent increase exceeds the allowable percentage, I would suggest you write to your landlord by responding within 30 days of receiving the notice, citing the exact Rera cap and providing a screenshot of the official rental calculator result.

If the landlord does not agree or insists on the illegal increase, I would proceed to file with the Rental Dispute Settlement Centre. You can lodge a case online or at the dispute resolution centre in the DLD building in Deira, Dubai.

You must do this within 30 days of the rent increase notice. You will most probably be asked to attend a mediation session as the Rera will set a meeting where both parties can negotiate. Landlords often agree to a smaller increase rather than prolong a dispute.

If mediation fails, a tribunal issues a binding ruling within 15 to 30 days, typically siding with the tenant if the landlord’s increase breaches the cap.

Importantly, landlords cannot serve an eviction notice solely for refusing an unlawful increase. Any eviction attempt on those grounds will probably be dismissed, and the landlord may even face penalties for defying Rera regulations.

The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to [e-mail]