What can I do if my tenant doesn't pay rent?
Dealing with a tenant who fails to pay rent can be frustrating for landlords, but there are clear steps you can take to resolve the issue under Dubai’s real estate laws. The Dubai Rental Law (Law No. 26 of 2007 and its amendments) offers landlords legal protection and a process to follow when tenants default on payments. Here's a step-by-step guide on what to do if your tenant doesn’t pay rent in Dubai.
1. Review the Rental Agreement
Before taking any action, review your rental agreement. This document is legally binding and should outline the terms of rent payment, grace periods, and consequences for non-payment. Most agreements give tenants a grace period of up to 30 days to make payments. Ensure that your tenant has indeed breached these terms before escalating the issue.
2. Serve a Formal Notice
If your tenant has missed the rent payment, the first official step is to send a written notice demanding payment. Under Dubai law, the landlord must provide the tenant with a 30-day notice period to settle any outstanding rent. The notice should be sent through registered mail or notarized delivery, so there’s a record of communication. Make sure to clearly state the total amount due and give the tenant a deadline to pay within 30 days.
3. File a Complaint with the Rental Dispute Settlement Centre (RDSC)
If the tenant fails to pay rent after the 30-day notice period, you can escalate the matter by filing a complaint with the Rental Dispute Settlement Centre (RDSC). This government body handles all tenancy disputes in Dubai.
You’ll need to submit:
The rental agreement
Proof of non-payment (such as bounced cheques or correspondence)
A copy of the written notice you served the tenant
Once filed, the RDSC will notify the tenant and schedule a hearing. The cost of filing a complaint is typically 3.5% of the disputed rental amount, with a minimum of AED 500 and a maximum of AED 20,000.
4. Eviction Process
If the RDSC finds in your favor, you can request the eviction of the tenant. The law allows landlords to evict a tenant for non-payment if they have not cleared outstanding rent within the 30-day notice period. However, keep in mind that evictions can take time, and tenants may appeal the decision, potentially delaying the process.
For the eviction to proceed smoothly, the RDSC will issue an official eviction notice that will be carried out by Dubai authorities.
5. Recovering Unpaid Rent
While eviction may resolve the issue of removing a problematic tenant, landlords often want to recover the unpaid rent. If the RDSC rules in your favor, it will issue a judgment to this effect, and you can proceed to claim unpaid rent through the legal system. If the tenant has bounced cheques, this can also lead to further legal action, including criminal proceedings.
6. Preventive Measures
To avoid facing non-payment issues in the future, there are several preventive steps landlords can take:
Thorough tenant screening: Always perform background checks on potential tenants to assess their financial stability.
Post-dated cheques: It is common practice in Dubai to request post-dated cheques for the entire lease term. If a cheque bounces, this gives you grounds for immediate legal action.