UAE Law and Practice Contributed by: Duncan Pickering, Nicola de Sylva and Sean Cope, DLA Piper Middle East LLP
6.10 Payment of Utilities and Telecommunications
Certain works require the consent of government authorities. In order to obtain such consent, these government authorities will require evi - dence of the landlord’s consent to such works. 6.14 Specific Regulations There is a maximum number of tenants who are permitted to occupy a single dwelling, which varies depending on the type of and number of rooms in the dwelling. Two months’ notice for renewal or termination is required for residential leases. Commercial Commercial leases have similar rules to those applicable to residential leases, with minor exceptions. Three months’ notice for renewal or termination is required for commercial leases. Hotels/serviced apartments Abu Dhabi Residential There are no specific provisions that apply to hotel leases. Leases of serviced apartments do not fall within the ambit of landlord and tenant legislation. Dubai The same laws currently apply to residential, industrial, office and retail leases. The excep - tion to this is accommodation provided by an employer to an employee. The DIFC Leasing Law 2020 draws a distinction between leases of commercial and of residential premises, with enhanced protections afforded to tenants of residential premises. 6.15 Effect of the Tenant’s Insolvency Insolvency law applies only to commercial com - panies. If a tenant (not a commercial company)
Premises will usually be individually metered. In such cases, the tenant will usually purchase services such as electricity or water directly from suppliers. Where premises are not individu - ally metered, leases may be inclusive of utilities and telecommunications, and the landlord may recover such costs through the service or sepa - rate utility charge. 6.11 Insurance Issues A landlord will typically pay for building insurance in a multi-let property, and a tenant will pay for its own contents insurance. A landlord operating a service charge will then recover the costs of the building insurance through the service charge. Under UAE federal law, there is automatic rent cesser following damage or destruction of the property. 6.12 Restrictions on the Use of Real Estate Leases normally specify the permitted use. If the lease is silent on this matter, the use should be consistent with zoning authorised for such property and the licensed activities of the tenant company. 6.13 Tenant’s Ability to Alter and Improve Real Estate Abu Dhabi and Dubai laws both require the ten - ant to obtain the consent of the landlord to all proposed works. The terms of a lease may also set out: • what kinds of alteration or improvement works the tenant is permitted to carry out; • when the landlord’s consent should be sought for such works; and • whether any types of works (eg, structural) are absolutely prohibited.
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