Legal route for Dubai tenants when landlords refuse rent payments.
A rent dispute can put Dubai tenants in a difficult position when a landlord refuses to accept the rent being offered. If you believe a proposed rent increase exceeds the amount permitted under Dubai’s rental rules, you may wish to continue paying the existing rent. But what happens if the landlord refuses to accept the payment?
Dubai’s Rental Dispute Centre (RDC) offers an ‘Offer and Deposit’ procedure that allows tenants to formally offer the rent to their landlord through the legal process when payment is refused. The procedure may also apply in certain cases involving the handover of property keys.
However, tenants should note that filing an ‘Offer and Deposit’ application does not, by itself, determine whether a rent increase is lawful or guarantee a tenancy renewal on the terms preferred by the tenant.
Landlord refusing your rent? This is where ‘Offer and Deposit’ comes in
In simple terms, an ‘Offer and Deposit’ application allows a tenant to submit a disputed rent payment through an official RDC process, rather than being left holding 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,” Elhais explained.
A tenant may typically use the procedure when a landlord refuses to accept rent, including during a dispute over a tenancy renewal, or refuses to receive the keys when a property is being surrendered.
For landlords, the process provides a formal channel through which offered rent or keys can be received while preserving their position on any unresolved tenancy dispute. Its use in key handover cases depends on the circumstances.
In simple terms, if you owe rent but your landlord refuses to accept the payment because of a dispute, you can use the RDC’s process to formally offer and deposit the amount rather than simply holding on to the money and potentially facing a non-payment dispute.
However, the tenant must formally 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 has been offered while preserving their position on any unresolved dispute. It can also be used to hand over keys to the tenant if the tenant does not wish to do so after the agreement has been concluded.”
Dr Hassan Elhais, Senior Legal Consultant at Amal Alrashedi Lawyers & Legal Consultants
How to apply for ‘Offer and Deposit’ in Dubai
Tenants can access the service through a Real Estate Services Trustee Centre or via the RDC website.
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, a valid trade licence and the Emirates ID of the named manager.
- Documents must be in Arabic or accompanied by a legal translation.
Elhais also strongly recommends that tenants keep evidence showing they attempted to make the payment. This could include emails, messages, notices or other written communications showing when the payment was offered and how the landlord responded.
Keeping a written record is particularly important, as it can be difficult to establish an undocumented conversation if the dispute later becomes a legal matter.
The fees include Dh50 for the Offer and Deposit application, Dh10 Knowledge Fee and Dh10 Innovation Fee. If the application is registered through a Real Estate Services Trustee Centre, an additional Dh130 plus VAT on the partner’s service fee applies.
What happens after you submit the application?
Submitting an Offer and Deposit application does not mean it will automatically be approved. Elhais explained that a judge reviews the request, after which the decision is made available online.
If the application is approved, the applicant must follow the order and complete any required deposit or handover procedures.
To apply online, visit rdc.gov.ae, create an account and enter the required personal and Ejari details.
Tenants should have all supporting documents ready before submitting the application.
“The RDC arranges formal notification to the landlord through its judicial notification procedures. Applicants should provide accurate contact details and confirm that the notification has been completed, rather than assume that a private email or message to the landlord replaces the Centre’s process,” he said.
In other words, sending the landlord a WhatsApp message or email does not, by itself, mean the RDC’s formal notification requirements have been fulfilled.
Does ‘Offer and Deposit’ settle the rent dispute?
Not necessarily. An ‘Offer and Deposit’ application should not be treated as a final ruling on the wider dispute between the landlord and tenant, Elhais explained.
If the dispute continues, either party can pursue conciliation through the RDC or file the appropriate rental claim, depending on the nature of the dispute. Successfully depositing rent does not, by itself, establish that a disputed rent increase is invalid or guarantee that the tenant can renew the tenancy on their preferred terms.
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. 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 approved and the RDC accepts the Offer and Deposit, the rent is held in the RDC’s treasury on behalf of the landlord. The landlord is then notified and can receive the funds through the RDC’s procedures.
Importantly, the deposited amount 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. 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. Tenants should therefore retain both the order and proof that the deposit was completed,” 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. 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,” Elhais said.
