What To Look For In A Sublease Contract In Dubai 

Hmmn. Renting in Dubai can be tricky.

Sublease contracts? Even trickier. Some landlords may try to sneak in unfair terms.

While these contracts often have a lot of details, with confusing terms and hidden rules – it’s not as scary as it sounds. With a little know-how, you can spot the important stuff and avoid surprises.

That’s where this blog comes in. We’ll show you what to look out for in your Dubai sublease contract.

No fancy lawyer talk, just straight facts to help you rent smartly.

TL;DR

• Always get written landlord consent before subletting in Dubai.
• Ensure your sublease contract covers all essential elements, including term, rent, responsibilities, and any other thing you and the landlord agree with.
• There are legal risks, including potential eviction and fines for unauthorized subleasing.

Why You Need A Sublease Contract for Vacation Rentals In Dubai

If you plan to use a rented apartment for Airbnb, you need a sublease contract from your landlord. That is, the sublease terms must be included in the original lease with your landlord.

Now, when you sign a lease agreement with the landlord, your name is meant to be on the agreement – as the person that’ll stay in that property during the agreed period. This means you can’t sublet it to anyone else as per the agreement.

But here’s the catch. 

You can form an LLC (Limited Liability Corporation) so you’ll be able to sublet the property in Airbnb or Holiday Homes — since a company cannot “sleep” in the bed or the apartment provided. 

Therefore, by signing the original lease agreement with your company’s name, you can easily sublet the property to guests without making any changes in the initial rent or lease agreement.

Yet, even if you sign the lease agreement with an LLC or not, it’s crucial that your landlord still knows you want to use the apartment for an Airbnb. This is necessary so you avoid legal trouble in the long run.

Key Components of a Sublease Contract For Airbnb In Dubai

When subletting in Dubai, a well-drafted sublease contract is needed for a smooth short term rental experience.

Photo by: Andrea Piqua

Every good sublease contract should cover these basics:

• Rent amount and payment schedule
• When the lease starts and ends
• Names of the parties involved
• Responsibilities of each party
• Airbnb lease addendum
• Security deposit details
• Property address

Let’s explore each of these in more detail.

1. Sublease Term

The sublease term (duration of lease) is crucial. It must fit inside your main lease. If your main lease ends in December, your short term rental can’t run until January. Double-check these dates to avoid headaches later. If you also plan on using the apartment for an Airbnb, make sure the terms (conditions) are included in the sublease contract. 

2. Airbnb Lease Addendum

Also, the Airbnb lease addendum should be in your lease agreement. This allows you, as the tenant, to list the rental property on Airbnb. The addendum is added to the original lease, and it sets the terms for things like additional security deposits, liability insurance, sharing of revenue (if you plan to share revenue with your landlord) or any extra details. 

The Airbnb lease addendum ensures you and the landlord are on the same page before any rentals take place, preventing future disagreements or complications.

3. Rent Amount and Due Dates

Your contract should clearly state the rent amount and due dates. And if there are late fees included, be on the lookout for that as well. Just like you wouldn’t want to be caught in a Dubai summer without AC, you don’t want to be caught without clear payment terms.

4. Security Deposit

The security deposit section is a must. The landlord will include:

• Amount of the deposit
• Conditions for deductions
• When and how it will be returned

This isn’t just good practice – it’s required by Dubai law.

5. Responsibilities of Both Parties

The sublease contract will also spell out who’s responsible for what. This typically includes:

• Utilities payments
• Maintenance and repairs
• Following building-specific rules

Additional Clauses to Consider In Dubai’s Sublease Contract

Additional clauses in your sublease contract will provide extra protection — mostly for your landlord. They’re like insurance policies – the landlord hopes he/she won’t need them, but glad they’re there if they do.

Photo by: Karolina Kaboompics

1. Early Termination Clause

Sometimes things don’t work out. Maybe you got a job offer in Abu Dhabi, or you’ve decided to turn the apartment into a home gym. 

This clause outlines what happens if you need to end the lease early. It’s useful in situations like:

• Job relocation
• Financial difficulties
• Family emergencies

Think of it as a prenup for your sublease. It sets the rules for a clean break if things don’t work out.

2. Property Condition Documentation

This is a detailed record of the property’s condition at move-in. It’s like taking a “before” picture when you start a home renovation project.

Here’s why it matters:

• Protects you from being blamed for pre-existing damage
• Helps resolve disputes about property condition
• Makes the move-out process smoother

Remember, these clauses aren’t just legal jargon. They’re tools to make your subleasing experience in Dubai smoother and more secure.

Legal Framework and Regulations for Sublease Contracts In Dubai

Photo by: Sora Shimazaki

Two main laws govern subleasing in Dubai:

1. Law No. 26 of 2007: Regulates the relationship between landlords and tenants.
2. Law No. 33 of 2008: Amends some provisions of Law No. 26.

These laws set the rules for evictions, rent increases, contract renewals, maintenance responsibilities.

Key points to remember:

• You need written permission from your landlord to sublease.
• You’re responsible for any damage caused by your guests.

Breaking these rules can lead to fines or even eviction. Which is why we’ll explore them in detail below.

1. Dubai Tenancy Law

Article 24 and Article 25 are a big deal if you’re thinking about subleasing. Let’s examine what they both mean.

• Article 24: Sublease Permission

Article 24 says you need your landlord’s written permission to sublease. Not a verbal “okay,” not a nod and a wink. Written. On paper. In black and white.

Why’s this so important?

Well, without it, you’ll be in trouble for subleasing your rented apartment for Airbnb – without permission:

• Your landlord can evict you
• You might face legal action
• You could lose your security deposit

It’s like driving without a license. Sure, you might get away with it for a while, but when you’re caught, it’s not pretty.

• Article 25: Grounds for Eviction

Article 25 is Article 24’s partner in crime. It says if you get evicted, your guests gets the boot too. Ouch.

Photo by: Sora Shimazaki

Here are the grounds for eviction in Dubai:

1. Not paying rent
2. Damaging the property
3. Subleasing without written consent
4. Using the property for illegal activities

Your landlord must give 30 days’ written notice before filing for eviction, and it typically takes 2-3 months from notice to court-ordered eviction. Also note that eviction can make it harder to rent in Dubai in the future. Some landlords check eviction records.

Following these rules isn’t just about avoiding trouble.

It’s respecting the property and the landlord. Plus, it keeps the Dubai property market fair for everyone.

Risks and Considerations for Subleasing A Property In Dubai

When subleasing in Dubai, it’s crucial to understand the risks involved and know about them upfront than to be caught off guard later. 

What Are the Legal Risks of Subleasing In Dubai?

• Breach of Contract: Unauthorized subletting violates your lease agreement. This can lead to legal action from your landlord.
• Visa Complications: If you’re an expat, lease violations could affect your residency status. Dubai authorities take housing regulations seriously.
• Criminal Charges: In extreme cases, if you’re found involved in illegal activities, you could will face criminal charges.

Financial Penalties of Illegal Subleasing For Short Term Rentals

The cost of unauthorized subletting ranges from 200 to 100,000 AED, depending on the violation’s severity.

• Additional Costs: 
• • Legal fees if the case goes to court
  • Compensation to the landlord for any damages
  • Loss of your security deposit
• Impact on Rent: Some landlords may increase rent significantly after discovering unauthorized subleasing.
• Long-term Consequences: Large fines can affect your credit rating in the UAE, making it harder to get loans or credit cards.

FAQs on Sublease Contracts In Dubai

1. What Are The Rules For Dubai Subletting?

Subleasing in Dubai requires written permission from the landlord. The sublease term can’t exceed the main lease, and the renter must follow Dubai’s tenancy laws.

2. How Long Are Rental Contracts In Dubai?

Rental contracts in Dubai typically last for one year, but can range from 3 months to 5 years depending on the agreement between landlord and tenant.

3. Is Subletting Illegal In Dubai?

No. Subleasing isn’t illegal in Dubai if done with the landlord’s written permission and in compliance with local laws. Unauthorized subletting, however, can lead to eviction and fines.

4. How Do You Write A Sublease Agreement?

A sublease agreement should include the parties’ names, property details, lease term, rent amount, security deposit, responsibilities of each party, and any specific conditions agreed upon.

Outro Thoughts

So there you have it – the ins and outs of sublease agreements in Dubai.

Remember, it’s not just about signing on the dotted line –  it’s knowing what you’re getting into. 

• Ask questions
• Take your time
• Don’t be afraid to negotiate

And if it all feels too much? Don’t sweat it. 

Homevy can help you. Whether you’re a property owner looking to maximize your investment or a tenant looking to make bank with short term rentals – Homevy’s got your back. We know the Dubai real estate market like the back of our hand.

Catch you on the next one.