Q: Last year was very difficult for the business as we really feel the effect of pandemic. Everything else was suffering and there’s the delay in salaries and some payables in the company and that include that office rent. We were being charged of AED 60k for 1 year, payable in 12 installments. At first, we were okay and paying it on time, but later on, although we were paying, it is getting delayed due to delay of receivables as well and with low cashflow. Tenancy: July 2021 to July 19, 2022 Recently, the company started recovering so all the pending dues for the office rent were paid before the end of tenancy contract. However, the landlord kept saying that we need to vacate the office as we are delaying the payment last couple of months. NO notice from his side thru email, no agency involved. He plans to increase the rent, I asked him how much is it but still wants us to evict us. I have two days more until the end of tenancy, does the landlord have the right to evict us?

Q: The 2-year tenancy contract for our rented office in Dubai is coming to an end on 30.01.2023. On 24.3.22 we received a notice of non-renewal from our landlord at the time. On 28.03.22, however, the property was sold. We never received any communication or termination from the new landlord. If there is no communication with our new landlord, will our tenancy contract be automatically renewed (1 or 2 years) as per Article 25(2) of the Tenancy Law?

Q: Back in April, I had signed for an office space in order to start registering my business. However, due to my investor backing out immediately afterwards, I had to halt my plans and cancel the office space. However, the office space management refused to cancel the lease as the contract has a clause stating that in the event of cancellation of the contract, I am still liable to pay the entire amount of the rent, regardless of not having used the office space at all. They continued to make invoices and are threatening with legal action if I do not pay. I would like some advice on how to handle this situation as I do not have the funds necessary to pay off an office space for one year. I feel it is unfair that they should force me to pay for an office I have not used nor planned on using, having informed them of this within a month of the contract being signed.

An interview-format article covering the topic of defaulting on commercial lease in the UAE and related procedures. This is from the legal podcast of lawyer Ludmila Yamalova, the founder of Lawgical with LYLAW. In this article, Ludmila discusses what one should do if the tenant becomes unresponsive.

The provisions of this Law apply to real property leased out in the Emirate of Dubai, including vacant and agricultural lands, but excluding hotel establishments and real property provided by natural or legal persons as accommodation to their employees at no charge.

Provisions of this Law supersede articles (2), (3), (4), (9), (13), (14), (15), (25), (26), (29), and (36) of Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai. 

This Decree establishes a specialised judicial system to hear rent disputes and develops the procedure for determination of such disputes through an expeditious and simple process for the purpose of realising social and economic stability for all persons involved with the real property rental and other related sectors.