New law: Electricity and water costs included in rent unless otherwise agreed.
Families and bachelors—both men and women—will be legally allowed to opt for shared housing in Dubai once the new law regulating the sector comes into effect in late August, can reveal.
Rent will generally be payable monthly and in advance, unless landlords and occupants agree to a different payment schedule in the tenancy contract.
Dr Hasan Elhais, Legal Consultant at Amal Al Rashedi Lawyers and Legal Consultants, said the new law specifies six categories of residents who can be accommodated in shared housing:
- Families
- Individual women
- Individual men
- Female students
- Male students
- Government employees and workers of private companies and establishments
“This is significant because the new law’s definition of shared accommodation goes beyond the traditional concept of unrelated workers or individuals living together in the same property,” Elhais said.
Under the legislation, shared housing refers to arrangements where individuals or families are allocated their own designated space within a property while sharing common facilities and services, such as kitchens, dining areas, bathrooms and outdoor spaces.
However, Elhais stressed that this does not mean every eligible category will automatically be permitted to occupy every type of shared accommodation.
Dubai Municipality can establish specific standards for each category based on the type of property. It can also add, amend or remove eligible categories through subsequent decisions.
Practical guidance published by LexisNexis Middle East notes that properties that may be designated for shared housing include residential apartments, standalone houses, residential complexes, mixed-use buildings, townhouses and multi-storey buildings.
Each property must still comply with the applicable permit, occupancy, planning and safety requirements.
How will rent be paid?
The new law also establishes a default system for rent payments.
“Under Article 19, the occupant must pay the agreed rent monthly and in advance,” Elhais said.
However, landlords and occupants can agree to a different payment schedule. “Monthly payment in advance should be understood as the statutory default rather than an inflexible rule,” he said.
For example, the parties could agree on another payment frequency, provided the arrangement is clearly stated in the tenancy contract.
Tenancy contracts and any amendments must also be registered in the Shared Accommodation Registry.
Does rent include utility bills?
Electricity and water consumption charges will be included in the rent by default, Elhais said, unless the landlord and occupant agree otherwise.
Even when the parties agree to handle these charges separately, the landlord remains responsible for paying the electricity and water bills to the relevant service provider.
The statutory definition of rent also covers the occupant’s use of common facilities and services within the property.
“This is particularly significant in shared accommodation because facilities such as kitchens, dining areas, bathrooms and external areas form part of the shared living arrangement contemplated by the law,” Elhais said.
Can friends or relatives stay over?
The law distinguishes between a registered occupant and another person who effectively begins living in the occupant’s allocated space.
Elhais said Article 26 prohibits an occupant from allowing another person to reside in or benefit from their allocated space. Subletting the space is also prohibited.
However, the legislation does not expressly prohibit ordinary social visitors.
“The law does not expressly state that an occupant is prohibited from receiving ordinary social visitors, nor does it prescribe a specific number of hours or nights after which a guest automatically becomes a resident,” Elhais said.
The distinction would therefore depend on the nature of the arrangement. An occasional visit by a family member or friend would differ from a person who regularly sleeps at the property, keeps personal belongings there and effectively uses it as their home.
“The fact that the person is a family member or close friend does not, by itself, create an exemption,” he said.
Further rules governing visitors could also be introduced through implementing decisions or regulations applying to individual shared housing properties.
Why is Dubai regulating shared housing?
The new law, announced in March, is aimed at regulating the management and occupancy of shared housing across Dubai.
It seeks to protect the rights of property owners and residents, ensure safe and healthy living conditions, curb overcrowding and informal housing, address building and land-use violations, and promote fair rental practices.
The legislation applies across the emirate, including private development areas and free zones. Collective labour accommodation is excluded.
No property can be designated for shared housing without a permit. Dubai Municipality previously told Khaleej Times that applications for such permits had not yet opened and that the relevant procedures and requirements were still being prepared.
