Understanding Article 26 of the Dubai Tenancy Law

One of the most common misconceptions among landlords in Dubai is that once they evict a tenant—whether for personal use or for the sale of the property—they are free to re-lease the unit if their plans change. This belief is not only incorrect but also legally risky. Article 26 of the Dubai Tenancy Law sets strict limits on re-leasing after eviction, and landlords who disregard these rules risk facing heavy compensation claims from former tenants.

What Article 26 Says

Article 26 of Law No. 26 of 2007, as amended by Law No. 33 of 2008, clearly states:

• If a landlord evicts a tenant for personal use of a residential property, the landlord cannot lease the property to another tenant for two years from the date of possession.
• If the eviction is for commercial property, the restriction period extends to three years.
• The Rental Disputes Settlement Centre (RDSC) may only approve a shorter period if the landlord presents compelling reasons.

Although the law directly links these restrictions to personal-use evictions under Article 25(2)(c), the RDSC has applied the same principle to evictions for sale. Courts have consistently ruled against landlords who evict tenants claiming a sale but then re-let the unit, often at higher rents, without actually completing a sale. Such actions are treated as bad faith and punished with substantial financial penalties.

Recent Tribunal Judgments: Heavy Penalties

The Rental Disputes Settlement Centre has made its position clear through multiple rulings:

• Case 1 – AED 180,000 Compensation: A landlord evicted a tenant for personal use but re-leased the property the same year. The Tribunal ordered AED 180,000 to cover relocation costs and tenant improvements.
• Case 2 – AED 200,000 Compensation: A landlord evicted for “sale” but never sold, instead re-leasing the property. The Tribunal imposed AED 200,000 in damages for bad-faith eviction.
• Case 3 – AED 53,000 Compensation: A landlord cited sale but quickly re-let the property post-eviction. The Tribunal awarded AED 53,000 to the tenant for rent differentials and moving expenses.

These cases show that intent matters. Eviction rights cannot be used as a pretext to obtain vacant possession and charge higher rents.

Risks for Landlords

Landlords who misuse eviction rights face several key risks:

• Compensation liability: Tenants can claim moving costs, rent differences, and damages.
• Loss of credibility: Courts take a strict view of bad-faith actions.
• Lease disruption: New rental contracts may be invalidated if challenged.

Best Practices for Compliance

To stay compliant and protect your ownership value:

• Ensure the eviction reason matches your genuine intent.
• Do not re-lease the property within the 2-year (residential) or 3-year (commercial) restriction period unless the RDSC authorizes it.
• If circumstances change after eviction, seek legal advice before acting.
• Keep proper documentation to prove compliance in case of disputes.

How Conveyancing Can Help

At Conveyancing, we support landlords in structuring eviction strategies with foresight and legal compliance. By guiding clients on Article 26 restrictions and proper documentation, we help avoid costly mistakes and safeguard long-term ownership value. Eviction is not just about repossession—it comes with post-eviction obligations designed to protect tenants and ensure fair market practices.

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For advice tailored to your situation, consult a qualified legal professional.