Dubai’s New Shared Housing Law Requires 30 Days’ Notice, with One Month’s Rent Deducted Before Advance Payments Are Refunded.
Residents living in designated shared housing in Dubai will be permitted to end their tenancy before the contract expires and request a refund of rent paid in advance under the emirate’s new shared-housing law.
Under Law No. 4 of 2026, an occupant can terminate a shared-housing tenancy at any point during the contract period, provided the required notice is given to the lessor.
The law sets a minimum notice period of 30 days. However, if the tenancy agreement specifies a longer notice period, the contractual requirement must be followed. For example, a resident whose agreement requires 60 days’ notice would need to comply with that period rather than the statutory 30-day minimum.
The provision forms part of Dubai’s new regulatory framework for shared housing, while further details on requirements and licensing procedures are still being introduced. Dubai Municipality previously said that additional requirements under the law would be announced and that a new service would be added to its Services Guide to facilitate shared-housing licensing.
How much rent can be refunded?
Residents who terminate their shared-housing contracts in line with the required notice provisions are entitled to request a refund of rent paid in advance. However, the law allows the lessor to deduct the equivalent of one month’s rent before returning the remaining balance.
This provision could be particularly relevant for residents who have paid several months of rent upfront.
Under the new shared-housing framework, rent is generally payable monthly in advance unless the occupant and lessor agree to a different arrangement. Electricity and water charges are also included in the rent unless otherwise agreed by both parties.
What if the refund is not paid?
The law sets out a specific process for residents who do not receive the refund they have requested.
If an occupant does not recover the amount within 30 days of notifying the lessor of the refund request, they can submit a petition to the Execution Judge seeking recovery of the outstanding rent.
The Rental Disputes Centre has exclusive jurisdiction over disputes involving rights and obligations established under the shared-housing law.
How should notice be given?
The method used to provide notice may also be important if a dispute arises later.
Under the law, termination notices can be served through a notary public, sent to the email address registered in the tenancy contract, delivered by hand or issued through another legally recognised method.
Residents should therefore make sure their notice is provided through one of the approved channels rather than relying solely on an informal verbal conversation.
What if the property is sold?
The law also provides protection for shared-housing residents when a property changes ownership, as the sale or transfer of the property does not automatically terminate an existing tenancy agreement.
If a shared-housing property is transferred to a new owner, the existing contract remains valid, and the occupant retains the right to continue living in the property under the terms agreed with the previous owner.
Shared-housing contracts must specify the tenancy period and remain valid until that term expires unless they are terminated earlier in accordance with the law.
These provisions form part of Dubai’s broader framework to regulate and formalise shared housing through permits, registered tenancy agreements, occupancy standards, and clearly defined rights and responsibilities for property owners, authorised establishments and residents.
