UAE Property: ‘Should I pay a penalty if I break my lease early?’

Question: For personal reasons, I need to break my lease early. Do I have to pay a penalty? AG, Dubai

Answer: Carefully read through your rental contract because in most cases you will have to pay a penalty for breaking the lease early.

If your contract includes a break clause, which typically allows early termination with 60 or 90 days’ notice, you would still pay a penalty – usually one or two months' rent.

If there’s no break clause, you are legally liable for the remainder of the lease. However, many landlords are willing to negotiate, especially if you help to find a new tenant. Having a good business relationship with your landlord is very important, especially in situations like this. Mediate and try to get any agreement in writing.

If the landlord is unco-operative or tries to retain your full deposit without cause, you can raise a complaint with the Rental Dispute Settlement Committee. The RDSC can often negotiate between the parties to find common ground and mediate such disputes fairly.

Q: My landlord is evicting me for his personal use of the property, but I suspect it’s just a tactic, given how market rents have performed in recent months. I don’t want to move out. What are the chances I can stay? WT, Dubai

A: Landlords can evict tenants for personal use only if they or a first-degree relative will occupy the property. They must give you notarised 12-month notice and are not allowed to re-let the property for two years after you leave. They also have the burden of proof that they do not own another suitable property that they could use instead.

If the landlord rents out the property again after eviction, that’s a violation of Article 25(2)(a). You can file a case at the RDSC, and if the court determines the landlord acted in bad faith, you could be awarded compensation. This could be equivalent to the rent plus costs, but the amount will be determined by the judge of the day at the RDSC.

Keep all written communication and document what happens after the notice period. Evidence is vital to proving misuse of this clause.

However similar cases heard at the RDSC might appear, the outcomes may differ. This is because the law in the UAE is not set on precedent. Bear this in mind if you wish to pursue a case.

Q: The air conditioning is not working properly in the property I rent, but the landlord won’t fix it. Isn’t that his responsibility?

I’ve been in this apartment for two years without too much hassle, but the landlord has recently become difficult. Please advise. KT, Dubai

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A: Under Article 16 of Dubai’s tenancy law, landlords are responsible for major maintenance and structural repairs, including air conditioning, unless your contract clearly states otherwise.

Tenants may be responsible for minor repairs up to a value (usually Dh500 or Dh1,000), but anything beyond that, especially vital systems like cooling, must be handled by the landlord. If they fail to act:

• Send a written request citing the law and your lease.
• If there’s no response, you can file a complaint with the Dubai Land Department or the RDSC.
• In some cases, you may fix the issue yourself with written permission and deduct the cost from rent. If the problem is unbearable, especially now in the summer heat, I would get three quotes and pick the most suitable one, not necessarily the cheapest or most expensive, just so you can live in comfort. You can always sort out repayment at a later stage. I would advise this if the landlord is unresponsive.

Do not withhold rent as this could weaken your legal standing. Always go through proper channels.

The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mariovolpi64@gmail.com