Dubai’s new shared housing law allows tenants to get rent refunds when ending leases early

Estimated read time 3 min read
Picture for illustrative purposes only. ARCHIVE

Dubai residents living in designated shared housing can now end their tenancy before the contract expires and request a refund of rent paid in advance under the emirate’s new shared-housing law.

Under Dubai’s new shared housing law, which took effect on August 26, an occupant can terminate a shared-housing tenancy at any point during the contract, provided the required notice is given to the lessor. The minimum notice period is 30 days, although a longer period stated in the tenancy contract must be followed.

For example, a resident whose contract requires 60 days’ notice cannot rely on the 30-day minimum and must give the longer notice specified in the agreement.

The law also provides a mechanism for residents who have paid rent in advance. When a tenancy is properly terminated, the occupant can request the return of the unused advance rent. However, the lessor is allowed to deduct the equivalent of one month’s rent before returning the remaining amount. This could be particularly relevant to residents who have paid several months of rent upfront.

Under the new framework, rent is generally payable monthly in advance unless the resident and lessor agree to another arrangement. Electricity and water charges are also included in the rent unless otherwise agreed between the parties.

What if the landlord does not refund the rent?

The law sets out a route for residents who do not receive money they are entitled to recover.

If the refund has not been received within 30 days after the occupant notifies the lessor of the request, the resident can petition the Execution Judge to recover the amount.

The Rental Disputes Centre has exclusive jurisdiction over disputes concerning rights and obligations established under the shared-housing law.

How should tenants give notice?

Residents should also make sure their termination notice can be formally documented.

The law allows notices to be served through a notary public, sent to the email address registered in the tenancy contract, delivered by hand or served through another legally approved method. An informal verbal conversation with a landlord may therefore not provide the same level of protection if a dispute later arises.

A change in ownership does not automatically cancel a shared-housing tenancy.

If a property is sold, the existing agreement remains in effect, allowing the occupant to continue living in the property according to the contract signed with the previous owner.

The law forms part of Dubai’s wider framework for regulating shared housing, which includes permits, registered tenancy contracts and occupancy standards. It applies across Dubai, including private development zones and free zones, while collective labour accommodation is excluded. ICA/Expat Media


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