Dubai tenant faces eviction over Dh2.4m unpaid commercial rent

A Dubai tenant has been ordered to vacate a commercial property in Business Bay after failing to pay Dh2.415 million in rent, with a court committee ruling that a subsequent attempt to settle the outstanding amount came too late to prevent eviction.

The First Instance Committee at Dubai’s Rental Disputes Settlement Centre ordered the tenant to hand over the property vacant and free of occupants and belongings, after finding that the tenant had failed to pay the rent within 30 days of receiving a formal legal notice from the landlord.

The dispute arose from a commercial tenancy agreement worth a total of Dh2,415,000. According to the case details, the tenant failed to pay the rent from the beginning of the contractual relationship, allowing the entire rental amount to accumulate as an outstanding debt.

The landlord subsequently took legal action, serving the tenant with a formal notice demanding payment of the outstanding rent or eviction of the property within the statutory 30-day period from the date of notification.

However, the tenant failed to settle the amount within the deadline.

During the proceedings, the tenant attempted to demonstrate a willingness to pay by submitting a certificate of offer and deposit, showing that steps had been taken to pay the outstanding rent.

The committee, however, rejected the attempt as grounds for preventing eviction, ruling that the offer and deposit procedure had been initiated only after the 30-day legal deadline had expired.

In its judgment, the committee referred to Dubai Law No. 26 of 2007, as amended by Law No. 33 of 2008, which regulates the relationship between landlords and tenants in the emirate.

Under the law, a landlord is entitled to seek eviction if a tenant fails to pay rent within 30 days of receiving a formal legal notice demanding payment.

The committee stressed that once the statutory deadline passes without payment, the landlord becomes entitled to seek eviction. Any subsequent payment arrangements or steps taken by the tenant after the deadline do not automatically prevent the landlord from exercising that right.

The committee therefore ordered the tenant to vacate the commercial property and hand it back vacant, while also requiring payment of any further rental amounts accruing on an annual basis until the date of actual eviction.

The tenant was additionally ordered to pay the applicable fees and legal costs.

The ruling highlights the importance of meeting legal deadlines in rental disputes, making clear that a tenant's intention to pay or a belated attempt to settle outstanding rent may not be sufficient to protect their tenancy rights once the statutory period has expired.

Established under Decree No. 26 of 2013, Dubai's Rental Disputes Settlement Centre is a specialised judicial authority responsible for resolving rental disputes and disputes involving jointly owned properties in the emirate.

The centre has exclusive jurisdiction to settle disputes between landlords and tenants in Dubai and its free zones. It aims to resolve cases swiftly and transparently through an innovative digital system, while supporting stability in the emirate's rental and real estate sectors.

It also provides alternative dispute resolution services through its Reconciliation and Amicable Settlement Department and handles the enforcement of judgments through a dedicated Enforcement Department.

The centre plays a key role in promoting a stable and sustainable rental environment in Dubai.