Residents living in designated shared housing in Dubai will be able to terminate their tenancy before the contract expires and seek a refund of rent paid in advance under the emirate’s new shared-housing law.
Under Law No. 4 of 2026, an occupant may terminate a shared-housing lease at any time during its term, provided the required notice is given to the lessor.
The minimum notice period is 30 days. However, if the tenancy contract stipulates a longer notice period, that longer period applies. This means, for instance, that a resident whose contract requires 60 days’ notice would have to comply with that requirement rather than relying on the 30-day statutory minimum.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
The provision is part of Dubai’s new regulatory framework for shared housing, with the detailed requirements and licensing procedures still being rolled out. Dubai Municipality previously told Khaleej Times that details and requirements under the law would be announced, with a new service to be added to its Services Guide to facilitate shared-housing licensing.
How much rent can be refunded?
The law gives residents who terminate their contract in accordance with the notice provisions the right to request the return of rent they have paid in advance. However, the law allows the lessor to deduct the value of one month’s rent from the advance payment before returning the balance.
The provision could become relevant where residents have paid several months of rent upfront.
Under the new shared-housing framework, the default is for rent to be paid monthly in advance unless the occupant and lessor agree on a different arrangement. Electricity and water charges are also included in the rent unless the parties agree otherwise.
What if the refund is not paid?
The law provides a specific route for residents who do not receive the money they have claimed.
If the occupant does not recover the amount within 30 days of notifying the lessor of the refund request, they may submit a petition to the Execution Judge seeking recovery of the rent.
The Rental Disputes Centre has exclusive jurisdiction over disputes relating to rights and obligations established under the shared-housing law.
How should notice be given?
The manner in which residents give notice could also be important if a disagreement subsequently arises.
The law states that notices relating to termination can be served through a notary public, sent to the email address registered in the tenancy contract, delivered by hand or served through another legally approved method.
Residents should therefore ensure that notice is given through one of the recognised methods rather than relying on an informal verbal conversation.
What if the property is sold?
The law contains another significant protection for shared-housing residents: a change in ownership does not automatically bring their contract to an end.
If a shared-housing property is transferred to a new owner, the existing tenancy agreement remains unaffected and the occupant has the right to continue living there in accordance with the contract signed with the previous owner.
Shared-housing contracts must specify the duration of the tenancy and remain in force until that period expires unless they are terminated in accordance with the law.
The provisions are part of a framework that formalises shared housing in Dubai through permits, registered tenancy contracts, occupancy standards and specific rights and responsibilities for owners, authorised establishments and residents.
Source: Khaleej Times