COVID-19: You can terminate your rental contract if you lose your job – Dubai Rental Dispute Centre

Judgement by rent dispute centre terms employment termination as ‘emergency circumstance'

Last updated: June 17, 2020 | 17:00

2 MIN READ

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If you have lost your job, it is now possible to terminate your rental contract in Dubai.

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A recent judgement by Dubai's Rental Dispute Management Centre (RDC) confirmed that leases can be terminated in two cases.

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1. Force majeure or 2. 'Emergency circumstances'

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Picture used for illustrative purposes only.

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In the case before the rental dispute centre, the claimant was unable to complete the contract due to loss of job.

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The RDC ruled that the claimant's case came within 'emergency circumstances'

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It became impossible for the claimant to continue the lease, according the centre's judgement.

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What does it mean for the tenant?

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Earlier, tenants could not cite job loss as a reason to terminate a rental agreement.

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Picture used for illustrative purposes only.

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Wael El Tounsy, head of Real Estate Dispute Resolution at Baker McKenzie Habib Al Mulla, said that it would be best for the tenant to approach their landlord directly to inform them of the job loss and request for lease termination.

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Get your dues cleared, whether it is the water and electricity bill, or any other service charge and request for lease termination.

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Picture used for illustrative purposes only.

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Your landlord may agree to terminate the lease. If not, you can reach out to the rental dispute centre.

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Picture used for illustrative purposes only.

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Each case varies and the judgement, too, can depend on various factors.

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What can go against the tenant? If you have a good record as a tenant, paying your rent on time, the good record will work in your favour.

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Picture used for illustrative purposes only.

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But if you have a history of missing rent or other disputes with your landlord, these can go against you.

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How to file a rental dispute in Dubai.

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How to file a rental dispute in Abu Dhabi.

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How to file a rental dispute in Sharjah.

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How to file a rental dispute in Ajman.

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