Stock Rental agreement / lease / tenants
Tenant seeks clarity as to whether or not he has the legal right to file a claim for compensation for the improvements he paid for in the rented unit. Image Credit: Shutterstock

Question:

Five (5) years ago, I rented a shop from someone and decorated the shop for a large sum of money. The contract says that the landlord has the right to vacate me upon the expiration of the contract in March 2024. Four (4) months ago, the landlord sent me a warning through the court to vacate the store upon the expiration of the contract.

My question: According to the Dubai rental law, does the landlord have the right to request eviction? In the event of eviction, do I have the legal right to file a claim for compensation for the amounts I paid for the store’s decorations? Please advise.

Answer:

To answer such question, I would advise the questioner that:

(1) He doesn’t have the right to request eviction because Paragraph 2 of Article 25 of Law No. (33) of 2008 Amending Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai, specifies the only conditions the landlord may request eviction upon expiry of the Tenancy Contract and after serving a one year notice, as follows:

a) Where the owner of the Real Property wishes to demolish the Real Property to reconstruct it, or to add any new constructions that will prevent the Tenant from using the Real Property, provided that the required permits are obtained from the competent entities;

b) where the Real Property is in a condition that requires restoration or comprehensive maintenance that cannot be carried out in the presence of the Tenant in the Real Property, provided that the condition of the Real Property is verified by a technical report issued by or attested to by Dubai Municipality;

c) where the owner of the Real Property wishes to take possession of it for his personal use or for use by any of his first-degree relatives, provided that the owner proves that he does not own another Real Property appropriate for such purpose; or

d) Where the owner of the Real Property wishes to sell the leased Real Property.

For the purposes of these conditions, the Landlord must notify the Tenant of the eviction reasons twelve (12) months prior to the date set for eviction, provided that this notice is given through a Notary Public or registered post.

(2) Regarding the decoration, you do not have the right to request or refund the amount unless agreed upon by the parties as per Article 23 of the same law above which mentions that lessee may not, upon evacuating and handing over the property, remove any fixed improvements added thereby, unless otherwise agreed upon by the parties.