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Understanding Administration Fees in Dubai Rental Apartments

Question: I have been living in a rented residential apartment for nearly eight years. Each year, my real estate agency charges me Dh1,500 as an ‘administration fee’ in addition to the Ejari fee and rent increases. I would like to understand whether this is legal, how this amount is determined, and whether I can challenge it.

Answer: Pursuant to your query, it is assumed that the apartment you reside in is in the emirate of Dubai, and the provisions of the Dubai rent law are applicable.

In the emirate of Dubai, a landlord-tenant relationship is governed by a tenancy contract. This contract must clearly state the details of the property being rented, the purpose for which it is being rented, the duration of the rental contract, the rent amount, and the mode of payment. This is in accordance with Article 4(1) of Law No. (33) of 2008 Amending Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai.

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“The contractual relationship between a Landlord and a Tenant will be regulated by a tenancy contract which includes a description of the leased Real Property that leaves no room for uncertainty; the purpose of the lease; the term of the Rent Contract; the Rent and its payment method; and the name of the Real Property owner if the Landlord is not the owner.”

Further, under the terms of a tenancy contract, the various payment obligations (towards government entities for fees and taxes) of the landlord and tenant are determined. In most cases, such payments are the tenant's obligation, unless otherwise stated in the tenancy contract. This follows Article 22 of the Law No (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai which reads as follows: “Unless the Rent Contract states otherwise, the tenant must pay all fees and taxes owed to government entities and departments in relation to the use of the real Property, and must pay the fees or taxes prescribed for any sublease of the real property.”

However, in this instance, it is assumed that the annual administration fee charged by the real estate agency is a fee for their services in completing the renewal of the tenancy contract. If the rent contract clearly states that such an administration fee is payable by you on renewal, then the real estate agency may charge this administration fee. However, if there is no mention of this fee payable by you to the real estate agency, you may clarify this with the real estate agency.

If you have never agreed to pay this administrative fee and the matter remains unresolved with the real estate agency, you may consider escalating this issue with the Rental Dispute Settlement Centre at the Dubai Land Department or to the Real Estate Regulatory Agency against your real estate agency.

Applicable Law:

Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai
Law No. (33) of 2008 Amending Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai

Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: [email protected] or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.

Disclaimer: The information provided above is intended for general guidance and does not constitute legal advice. It is recommended to seek formal legal counsel.