Published in: Gulf News
A rent dispute can leave Dubai tenants in a difficult position if a landlord refuses to accept the payment they are offering.
If you believe a proposed rent increase is above the amount allowed under Dubai's rental rules, you may want to continue paying the previous rent but what should you do if your landlord will not accept it?
The Dubai's Rental Dispute Centre (RDC) offers an 'Offer and Deposit' procedure, which allows a tenant to formally offer rent to the landlord through the legal process when the landlord refuses to receive it. The procedure can also apply in certain situations involving the handover of property keys.
However, tenants should understand that filing an Offer and Deposit application does not by itself decide whether a rent increase is legal or guarantee a renewal on the tenant's preferred terms.
Landlord refusing your rent? This is where Offer and Deposit comes in
In simple terms, an Offer and Deposit application allows a tenant to put a disputed rent payment through an official RDC process rather than being left with the money while the landlord refuses to accept it.
Dr. Hassan Elhais, Senior Legal Consultant at Amal Alrashedi Lawyers & Legal Consultants, said the RDC officially refers to the procedure as Offer and Deposit.
“It allows an applicant to seek a judge's order to formally offer rent or property keys to the landlord without determining the parties' wider tenancy rights,” Dr. Hassan Elhais explained.
A tenant may typically use the procedure when a landlord refuses to accept rent, including during a disagreement over a tenancy renewal, or refuses to receive the keys when a property is being surrendered.
- For landlords, the procedure provides a formal channel to receive what has been offered while preserving their position regarding any unresolved dispute. It can also be used in situations involving the handover of keys, depending on the circumstances.
- In simple terms - you owe rent, but there is a dispute and your landlord will not take the payment. Rather than simply holding on to the money and potentially being accused of non-payment, you can ask the RDC to formally accept the payment through its process.
- However, the tenant must legally register the matter with the RDC and follow the required procedure.
A tenant would typically use it when the landlord refuses rent, including during a renewal disagreement or refuses to receive the keys when the property is being surrendered. For landlords, it provides a formal channel to receive what is offered while preserving their position on any unresolved dispute as well as to give keys to the tenant if the tenant does not wish to do such after the agreement has been made.
How to apply for Offer and Deposit in Dubai
Tenants can access the service through a Real Estate Services Trustee or through the RDC website.
To apply online, visit rdc.gov.ae, create an account and enter the required personal and Ejari details.
Tenants should have their supporting documents ready before submitting the application. The published requirements include:
- A written application, known as the Offer and Deposit motion.
- Emirates ID.
- The latest signed tenancy contract.
- A proposed renewal contract on the same terms, where relevant.
- Copies of cheques and relevant correspondence.
- For companies, the current trade licence and Emirates ID of the named manager.
- Documents must be in Arabic or accompanied by a legal translation.
Dr. Hassan Elhais strongly recommends that tenants should also keep evidence showing that they attempted to make the payment. This could include emails, messages, notices or other written communication showing when the payment was offered and how the landlord responded. Keeping a written record is particularly important because an undocumented conversation can be difficult to establish later.
The fees include Dh50 for the Offer and Deposit, Dh10 Knowledge Fee and Dh10 Innovation Fee. If the claim is registered through a Real Estate Services Trustee Centre, an additional Dh130 plus VAT on the partner's service fee will apply.
What happens after you submit the application?
Submitting an Offer and Deposit application does not mean that it will automatically be approved. Dr. Hassan Elhais explained that a judge considers the request, with the decision then becoming available online.
If the application is approved, the applicant must follow the order and complete any required deposit or handover steps.
“The RDC arranges formal notification to the landlord through its judicial notification procedures and applicants should provide accurate contact details and confirm that notification has been completed, rather than assume that a private email or message to the landlord replaces the Centre's process,” he said.
This means a tenant should not assume that simply sending the landlord a WhatsApp message or email is equivalent to completing the RDC notification process.
Does Offer and Deposit settle the rent dispute?
Not really, an Offer and Deposit application should not be treated as a final judgment on the wider disagreement between the landlord and tenant, Dr. Hassan Elhais explained.
If the dispute continues, either party can pursue RDC conciliation or the appropriate rental claim, depending on the issue.
For example, successfully depositing rent does not, by itself, establish that a disputed rent increase is invalid or guarantee that the tenant will be able to renew the tenancy on their preferred terms.
Dr. Hassan Elhais also warned tenants that they must continue meeting their rental obligations as they fall due.
“Meanwhile, the tenant should continue meeting rent obligations as they fall due and retain payment records and a pending dispute is not a rent holiday as Dubai's tenancy law expressly maintains the payment obligation during eviction proceedings,” he said.
What happens to the rent after it is deposited?
If the motion is successful and the RDC agrees to accept the Offer and Deposit, the rent is held by the RDC's treasury for the landlord. The landlord is then notified to receive the money through the RDC's procedures.
Importantly, this is the rent payment itself. It is not an application fee and does not replace a security deposit.
“A compliant deposit can protect the tenant against allegations of non-payment for the rent covered and the RDC’s published guidance states that, where its prescribed deposit procedure is followed, the tenant is regarded as having paid from the date the judge accepts the request and tenants should retain both the order and proof of the completed deposit,” Elhais said.
However, filing the application is not the same as completing the payment.
“Late payment or failure to comply with the order can still create exposure and depositing the previous rent also does not by itself, establish that a disputed increase is invalid or guarantee renewal on the tenant's preferred terms,” Dr. Hassan Elhais said.
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