Historic Overview
Subletting is a common practice in the real estate market, especially where landlords entrust leasing agents to manage properties. These agents, acting as original tenants, may sublease the property to third parties. However, with rising rental costs, many tenants in UAE resort to sharing accommodation to split expenses, often without the landlord’s consent. This practice exposes all parties—landlords, tenants, and subtenants—to potential legal risks.
However, is this legal? What risks do the landlord, tenant, and subtenant face from shared accommodation, and what law governs this relationship?
Legal Framework
Under Article (25)(1)(b) of Law No. (26) of 2007, a tenant cannot sublease or share the property, in whole or part, without the landlord’s written permission. If this condition is violated, the landlord has the right to terminate the tenancy agreement, and the subtenant is subject to eviction. Furthermore, Article (25)(1)(w) grants the subtenant the right to claim compensation from the tenant if a dispute arises.
Case 1: The Landlord Does Not Permit Subleasing
If the landlord has not granted permission for subleasing, they may file a case with the Rental Dispute Center (RDC) to terminate the lease and evict the tenant. The Center will appoint an expert to inspect the unit and verify occupancy by unauthorized individuals. The expert will assess the occupants’ identities, their connection to the property, and their relationship with both the tenant and landlord. If subleasing is confirmed, the RDC will issue a ruling to terminate the lease and order the subtenant’s immediate eviction.
Case 2: The Landlord Grants Permission to Sublease
If a subtenant wishes to continue occupying the property after the eviction of the original tenant, they may do so with the landlord’s written consent, provided the tenancy contract is still valid. Article (30) of Law No. (26) of 2007 stipulates that if the Rental Dispute Judge terminates the original lease, but the subtenant holds a valid sublease with the landlord’s approval, the subtenant may remain in the property under the terms of the existing contract.
Landlord’s Right to Compensation for Unauthorized Subletting
Under Article (25)(1)(b) of Law No. (26) of 2007, as amended, unauthorized subletting without the landlord’s written consent is a breach of contract, entitling the landlord to seek eviction of both the tenant and subtenant. In addition, if the sublease generates higher revenue than the original tenancy agreement, the landlord may pursue a claim for compensation. This can be initiated through the Rental Dispute Center to recover the financial difference between the revenue earned from the sublease and the rent stipulated in the original contract. Such claims for compensation are in addition to any eviction orders issued. To mitigate these risks, landlords are advised to include clear prohibitions or conditions on subletting within the tenancy agreements, thereby strengthening their legal position in the event of a dispute.
Practical Considerations
Before entering into a sublease agreement, it is essential to request a copy of the original lease from the tenant, ensuring it is registered with Ejari. If the lease explicitly permits subletting or if the landlord has issued written consent, the sublease is legally valid. However, if no such consent exists, the sublease violates the law.
If subleasing is unauthorized, the landlord can file a case with the RDC to terminate the lease and evict the occupants. An investigation will follow, and an eviction order may be issued, requiring the subtenant to vacate immediately.
It is important to note that Ejari does not allow separate lease registrations or the registration of subleases for residential units. While a sublease contract provides some protection in disputes with the original tenant, it does not establish any direct legal relationship with the landlord.
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