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Subleasing in Dubai, while uncommon, can occur due to changing tenant circumstances. Reasons include financial challenges leading tenants to sublet a room or a tenant signing a 12-month lease but needing to leave before completion. Subletting is regulated by Article 24 of Law No. 26 of 2007, requiring written landlord consent. Unauthorized subleasing can result in eviction. Subtenants with approval have similar rights to the primary tenant. Effective communication with the landlord is crucial, exploring options like lease transfers or termination with agreed penalties. Short-term tenants may discuss subleasing before signing agreements.
WHAT EXACTLY IS SUB-LEASING?
In the context of real estate, subleasing, or subletting, refers to a property lease granted by the original tenant to a subtenant. In simpler terms, it involves the tenant renting out the property to a third party. This practice is commonly observed in two scenarios:
Firstly, when an agency secures the master lease for an entire building and subsequently subleases apartments to individual tenants. In this arrangement, each tenant in the building holds a sublease agreement with the agency.
The second scenario arises when an existing tenant sublets or rents either the entire or a portion of a rental property to a third party at any point during the contractual period.
SUBLETTING IS LEGAL IN DUBAI
Subleasing in Dubai is regulated by Article 24 of Law No. 26 of 2007. Unless explicitly stated otherwise in the tenancy agreement, tenants are required to obtain written authorization from the landlord before engaging in subleasing activities.
Moreover, Article 25 stipulates that subletting a property in Dubai without the landlord’s written consent is a basis for eviction. In essence, tenants are prohibited from subleasing a property in Dubai unless expressly allowed in the terms of the tenancy agreement.
REQUESTING PERMISSION FROM THE LANDLORD
If not explicitly addressed in the contract, tenants are required to obtain written authorization from their landlord. However, it’s noteworthy that only a limited number of landlords are open to considering this option. Various reasons underlie landlords’ reluctance to permit subleasing in Dubai, such as concerns about potential issues with the subtenant or doubts regarding the subtenant’s reliability compared to the original tenant.
It is essential to acknowledge that in cases where the landlord grants authorization for subletting, the original tenant bears responsibility for any damages caused by the subtenants.
WHAT IF TENANTS SUBLEASE WITH THE LANDLORD’S PERMISSION?
Subletting without obtaining the landlord’s explicit permission constitutes a breach of the tenancy contract and is deemed unlawful in Dubai. In such instances, irrespective of the contract’s expiration date, the landlord has the legal authority to terminate the tenancy lease agreement, leading to the eviction of both the primary tenant and any sub-tenants from the property.
Moreover, the original tenant may face legal consequences, including the possibility of a compensation claim, if they sublet the property in Dubai without securing consent from the landlord.
WHAT RIGHTS DO I HAVE TO SUBLET FROM ANOTHER TENANT?
In the case of a legally binding sublease, the subtenant is entitled to the same tenancy rights as the original tenant. For instance, landlords must provide subtenants with a 90-day notice period for any rent increases, and adjustments should be based on the rental index calculator.
Moreover, the eviction regulations and legal provisions applicable to primary tenants extend to sub-tenants. However, this applies only when there is a formal sublease agreement in place, featuring an approved subletting clause and written consent from the landlord. In the absence of a formal sublease agreement, subtenants may have limited rights, and the landlord retains the authority to evict them at any moment.
WHAT SUBLEASE OPTIONS DO TENANTS IN DUBAI HAVE?
Engaging in open communication with the landlord is advisable, as many landlords may be amenable to finding solutions. In instances where a subtenant presents challenges, the original tenant might explore options such as transferring the lease to another party.
If the prospect of transferring the lease proves unfeasible, the original tenant may find it more practical to terminate the lease, subject to any penalties stipulated in the contract.
For those not requiring a full-year lease commitment, the initial tenant may consider negotiating a sublease agreement with the landlord before finalizing the contract.
Evantis Realty is a leading real estate brokerage in Dubai, specializing in high-end properties across the city. With years of experience and a deep understanding of the market, Evantis Realty offers personalized service and expert advice to help clients navigate the dynamic Dubai real estate market with confidence.
