Rental income is an important factor in investing in Dubai. But what should you do if a tenant misses a payment?
Knowing your rights as well as the correct steps can help you to navigate these situations calmly. Here is what landlords and future property investors should know.
Check Your Tenancy Agreement
Start by checking your tenancy contract and payment schedule. Confirm when the rent was due and whether you agreed to any changes with the tenant.
Maintain records of payments and communication about the outstanding amount. These may be useful if the matter needs to be resolved formally.
Can You Take Actions After One Missed Payment
Yes. Under Article 25(1)(a) of Dubai Law No. 26 of 2007, as amended, a landlord may seek eviction if the tenant fails to pay all or part of the rent within 30 days of receiving a formal notice demanding payment, unless the parties agreed otherwise.
You do not necessarily need to wait for multiple missed payments. However, eviction is not automatic.
Understand the 30 Day Notice Period
The landlord must serve a formal payment notice through a Notary Public or registered mail. The 30-day period starts when the notice is served, not simply when the rent was due.
If the rent remains unpaid after the required period, the landlord may file a case with Dubai’s Rental Disputes Center (RDC). The case must follow the proper legal process.
How to File a Rental Dispute
If the rent remains unpaid, a landlord may file a rental dispute at Dubai's Rental Disputes Center. Here are some steps that might be helpful to get started.
Try to resolve the issue through friendly-communication, keep records of every conversation and always agree to trackable payment arrangements.
Serve a formal notice if you are seeking eviction. It should be done through official channels and make sure to have a copy of all shared documents with you.
Register the case online. Visit the RDC website to lodge an online dispute. Create an account or sign in, enter the tenancy and parties' details, state your claim, upload the supporting documents and follow the instructions to submit it.
Prepare the required documents (always check with the authorities)
A copy of the latest tenancy contract or Ejari.
Your Emirates ID if you are an individual landlord. For a company, the commercial license and the manager's or owner's photo ID.
A bank letter or statement showing the claimant's IBAN.
For an eviction claim, a copy of the notarised notice and notification officer's report, or the registered-mail record and proof of receipt.
Supporting evidence, such as payment records, correspondence with the tenant, cheques, notices, a property management agreement or a power of attorney, where relevant.
Check language requirements. Documents must be in Arabic or legally translated to Arabic and uploaded into the RDC system. Hard copies will not be accepted if you are placing an online inquiry.
Check fees carefully before filing. Different services cost different payments. Make sure you check the total amount of all the add ons before you submit.
Know What to Avoid
Do not change the locks, remove the tenant’s belongings or disconnect essential services to force them out. Follow the legal process and seek qualified advice if you are unsure how to proceed.
Plan Ahead When Investing in Rental Property
Before buying a property to rent out, understanding the tenancy terms, payment arrangements and your responsibilities as a landlord. Keep clear records and make sure you understand the steps available if a payment is missed.
Rental property can be a useful asset, but managing it also means being prepared for different situations.
Planning to invest in Dubai property? Anarock Middle East can help you explore property options based on your goals and requirements. Contact our team to discuss your investment plans.
*This article provides general information, not legal advice. Check the latest legislation and consult a qualified legal professional for advice on your circumstances.