What Happens If My Tenant Doesn't Pay Rent? (Dubai 2023)

As a landlord, it can be frustrating when a tenant fails to pay their rent. Whilst non-payment of rent doesn’t happen too often, when it does, it can lead to legal disputes and financial losses. 

If you’re in a situation where your tenant has failed to pay their rent, you might be wondering what to do about it, what options you have to recover the unpaid rent and whether you can evict them. Let’s discuss. 

Real Estate Regulatory Agency (RERA)

The first thing to be aware of is the Real Estate Regulatory Agency (RERA) of Dubai has outlined specific laws which govern the relationship between tenants and landlords. These laws were created to minimise the risk of disputes and misunderstandings. 

It is very important to understand that these laws have been strictly designed to protect both the landlord and the tenant. The legal process for eviction can be lengthy and intricate, and it is crucial that you follow the correct legal procedures to avoid any delay or substantial loss. It is advisable to seek the assistance of a legal professional who can guide you through the process and ensure that your rights as a landlord are protected.

1 - Contact The Tenant

The first thing you can do if your tenant doesn’t pay their rent is to informally contact them to remind them of their rental obligations. Let them know that the rent is now due and that you will take further action if the payment is not made. Ensure that you communicate this to the tenant in writing. 

Hopefully, this is all that will be required to solve the problem, but if the tenant still fails to pay their rent, you can serve a legal notice. 

2 - Serve A Legal Notice

Once the cheque is returned unpaid, the landlord or the managing agent will inform the tenant of it and request them to make the payment. Some landlords provide up to 48 hours to make the payment, and some are even flexible up to a week’s time, it’s the landlord’s prerogative. If the tenant fails to pay their rent by the end of this period, the landlord can issue a 30-day legal notice to the tenant demanding payment.

The legal notice should outline exactly how much the tenant owes, including any late fees (if any are specified within the tenancy agreement) and what action the landlord will take should payment still not be made within 30 days. 

The legal notice must be notarised through a UAE notary and served through registered post. If the tenant fails to pay their rent within 30 days, the situation can be escalated to the Rental Dispute Center (RDC).

3 -  Rental Dispute Center

The RDC is responsible for resolving disputes between landlords and tenants, and it is the first port of call for any disputes related to rental properties in Dubai. Once the landlord files a case, the RDC will issue a notice to the tenant, informing them of the case and setting a date for the hearing. At the hearing, both the landlord and tenant will be given an opportunity to present their case, and the RDC will make a judgment based on the evidence presented. All the documents have to be translated into Arabic and submitted along with a memorandum, outlining the terms of a contract and any other details. 

If the RDC rules in favour of the landlord, the tenant will be ordered to pay the outstanding rent, along with any legal fees incurred by the landlord. If the tenant still does not pay within the specified time period, the landlord can request that the RDC issue an eviction order. The eviction order will give the tenant a specified period to vacate the property, and if the tenant fails to vacate, the landlord can request the RDC to evict the tenant. The RDC will then appoint personnel to execute the eviction. 

Preventing Tenant Issues

Whilst there is always some risk of encountering issues with your tenant, there are steps you can take to minimise this risk. The first is to ensure that you have a well-drafted tenancy agreement in place, which clearly outlines the terms and conditions of the tenancy and the consequences of non-payment of rent. You should also conduct thorough tenant screenings and maintain a good relationship with your tenants to avoid any disputes.

Creating a well-drafted tenancy agreement, screening tenants, maintaining a good relationship and acting promptly are all things that an experienced property manager can do on your behalf. 

Here at Betterhomes, we manage the UAE’s largest portfolio of residential and commercial properties, with over 8,500 units under management. Find out more about Betterhomes Property Management here.