UAE Rent Law 2025: Key Changes Every Tenant and Landlord Should Know

Last Modified: 25-June, 2025

Whether you’re a seasoned investor, a first-time tenant, or a landlord managing properties, understanding the UAE Rent Law 2025 is crucial for staying ahead in today’s dynamic real estate market. The year 2025 has introduced several critical updates to tenancy regulations in Dubai and Ajman—designed to protect tenant rights while ensuring landlords maintain fair returns.

Quick Summary: 2025 Rent Law Updates in Dubai & Ajman

This comprehensive guide explains the new legal changes, how they impact landlords and tenants, and Ajman-specific rules, and answers the most frequently asked questions.

Always consult your contract or legal advisor if unclear. Need expert help? Contact IM Properties.

What’s New in UAE Rent Law 2025?

The rental landscape in the UAE has evolved to create a more transparent and structured process for both parties. Here are the key updates introduced this year:

Laws Referenced in UAE Rent Law 2025 – Explained

Understanding Rent Increases

In Dubai, rent hikes are governed by Article 10 of Dubai Law No. 26 of 2007, amended in 2008. The RERA Index continues to be the official tool to determine how much a landlord can increase rent. A hike is only allowed if your rent is 11% or more below the market average.

The capped structure remains:

• Less than 10% below market = No increase
• 11–20% below = 5% increase
• 21–30% below = 10% increase
• 31–40% below = 15% increase
• More than 40% below = 20% increase

In Ajman, while there’s no codified index, ARRA now mandates landlords to give 90 days’ notice ahead of renewal and justifies the increase based on market evidence or property upgrades.

Tenant Eviction Rules Simplified

Dubai’s Articles 25 and 26 make it clear: landlords may evict a tenant only for valid reasons like personal use, sale, or demolition, with a 12-month written notice issued via a notary or registered mail.

Ajman mirrors these rules under ARRA but with a more case-by-case approach. Landlords must present legitimate cause and serve early notice with written documentation.

 Security Deposits & Hidden Fees – What’s New?

In 2025, Ajman has moved toward greater transparency. While there’s no federal deposit cap, most landlords now charge 1 month’s rent. Higher-end units may involve tiered deposits, as practiced by firms like Aqaar.

Also, tenants in Ajman are responsible for utility deposits, including:

• FEWA (Electricity & Water)
• Ajman Sewerage

All of these must be clearly stated in the contract to avoid disputes.

Who Handles Maintenance?

In Dubai, maintenance is split: landlords handle major issues (plumbing, AC, structural), while tenants cover minor ones (light bulbs, filters).

In Ajman, the tenancy contract defines the split. New and renewed contracts often include property management firms that cover major maintenance, while minor fixes are typically the tenant’s responsibility.

✅ Always ask for a written maintenance clause.

Key Tenant Rights in 2025

As a tenant, your rights include:

• Right to renew your lease unless there’s a legal eviction reason
• Right to fair and capped rent increases (RERA/ARRA)
• Right to live in a well-maintained unit
• Right to privacy – landlords must give prior notice to enter
• Right to clear communication – especially for rent hikes or evictions

Best Practices for Landlords and Tenants in 2025

Whether you’re renting out or moving into a property, these best practices will help avoid disputes:

For Tenants:

• Read all clauses carefully—especially around maintenance and renewal
• Ask for written rent increase or eviction notices
• Keep all receipts and communication for future reference

For Landlords:

• Use the RERA index in Dubai to set rent increases
• In Ajman, justify increases with market data or improvements
• Always provide written notice and disclose all fees

Ajman: Rising in Tenant Interest

As rents in Dubai continue to rise, many tenants are looking toward Ajman for affordable alternatives. Ajman offers:

• Lower rents as compared to Dubai and Sharjah ((up to 40% less))
• Flexible security deposit rules
• Support from ARRA on disputes and legalities
• Proximity to Dubai for commuters

Tenants seeking value-for-money apartments are increasingly exploring Al Rashidiya, Al Bustan, and Ajman Corniche areas.

🔗 Check out apartments for rent in Ajman on Improperties.

Final Thoughts

The UAE Rent Law 2025 brings much-needed clarity and structure to the real estate rental sector. While Dubai remains highly regulated under RERA, Ajman offers increasing legal safeguards with more room for negotiation and affordability.

📞 Need help with your rental or renewal? Contact our experts at IM Properties today for transparent advice, rent negotiations, and hand-picked studio or apartment listings.

FAQs

Can a landlord increase the rent every year in Dubai?

Yes, but only according to RERA’s rental index. If the property is not significantly underpriced compared to the market rate, rent cannot be increased.

What is the maximum rent increase as per RERA?

Up to 20%, depending on how much lower your rent is compared to the market average.

Can a landlord refuse to renew a lease in Dubai?

Yes, but only for legal reasons. These include property sale, personal use, or major renovation. A 12-month notice is mandatory.

Can tenants refuse viewings in Dubai or Ajman?

Yes, unless it’s mentioned in the contract. Otherwise, landlords must get tenant approval before showing the property.

What are the tenant’s rights regarding maintenance in Ajman?

Major maintenance is handled by the property owner or management company. Minor maintenance (like replacing faucets or minor electrical issues) is usually the tenant’s responsibility.