A rental or lease agreement, either for a residential or commercial property, is the blueprint for a tenancy. The agreement lays out all of the rights and obligations of a tenant and a landlord. It is a highly practical legal document that’s full of the crucial business details. With a lease or rental agreement in UAE, make sure that it is signed by the signatories in front of a public notary in Dubai. This is to ensure that the document is binding and can hold up when taken in court.
Lease agreement: Add the following essential clauses in your Rental agreement
- Names of tenants and occupants
Every adult that lives in a rental, including the members of an unmarried or married couple, are to be named as the tenants. All of the adult occupants or tenants also need to sign the agreement in front of a public notary in Dubai. By requiring the official tenants in signing the agreement, the landlord gets a form of extra insurance as each tenant will be legally responsible in paying the entire rent and following the terms of the rental/lease agreement.
This means that when one of the tenants skips out or fails in paying the rent, the landlord can legally seek rent from the other tenants. Additionally, when one tenant is proven to be in violation of a term or condition in the lease/rental agreement, the landlord has the right in terminating the tenancy for all of the tenants and not just the violator or offender.
- Description of the rental property
Include the crucial details of the property, including the complete address with the unit number and name of the building, if applicable. You would also want to take note of the specific parking spots or storage areas that will be included with the rental. For instance, if your lease will include an assigned parking, make sure you right the spot or stall number. Similarly, add the specifications of the areas where tenants are allowed in accessing e.g. locked shed in a backyard.
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- Tenancy term
A rental agreement in UAE creates a short-term tenancy which renew until the tenants or the landlord terminate. As for leases, they create tenancies which terminate after a term e.g. a year as indicated in the leasing agreement. Whichever you use, make sure you are specific. Take note of the starting date of the rental or lease, the length of the tenancy, and the expiration date in the case of a lease.
- Rental price
Remember to not just write the amount of the lease or rent. In this clause of the rental/lease agreement in UAE, spell out the date of the payment which is typically the first week of the month. Don’t forget how the rent payment must be paid as well e.g. mailed to your office.
In order to avoid any confusion, add these details:
- Acceptable payment methods e.g. personal check only, which is rent payment in Dubai
- Any charges if the rent cheque bounces
- Whether there is a fee for late rental payments
- Amount of fee for a late rental payment
- Grace period, if applicable, for a late rental payment
- Security Deport
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Avoid the most common sources off disputes between tenants and landlords in UAE by being clear regarding the following:
- dollar amount for security deposit
- whether you expect each tenant in replenishing the deposit in case you’ve made a deduction while it’s mid-tenancy term e.g. if you’ve repaired a door or window that has been damaged two months into your tenancy agreement
- how you will potentially use the deposit e.g. to cover repair or unpaid rent
- how you won’t be able to use a security deposit made by the tenant
- how and when you’ll return the security deposit
- how deductions will be accounted for after a tenant moves out
- any non-refundable fees e.g. cleaning for pets
It is also a great idea if you include details on whether you will be holding the security deposit, as well as whether you will pay interest for the deposit of the tenant.
- Policies for repair and maintenance
Your best defense for rent-related battles and rent-withholding hassles is clearly explaining the policies for repair and maintenance.
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Policies for repair and maintenance should include:
- The responsibility of the tenants in maintaining sanitary and clean premises and to cover for any damage which they’ve caused e.g. wear and tear
- Requirement that tenants should alert the landlord regarding dangerous or defective conditions with all the details regarding procedures for managing repair requests and complaints
- Restrictions on repairs and alterations done by tenants e.g. prohibit any painting unless the landlord has given approval in writing
To know more about rental/lease agreements in Dubai and how to ensure they are considered legal and valid through notarization in UAE, call us here in Notary Public Dubai!