A new co-living law in Dubai allows residents to terminate their lease before the contract expires and demand a refund of prepaid rent.
According to Law No. 4 of 2026, the tenant has the right to terminate the lease agreement at any time, provided they notify the landlord in a timely manner. The minimum notice period is 30 days, but if the contract specifies a longer period, that one applies.
This provision is part of Dubai's new regulatory framework for co-living, although detailed requirements and licensing procedures are still being implemented. Previously, the Dubai Municipality informed Khaleej Times that the law's details would be announced, and a new service would be added to the Service Guide to simplify co-living licensing.
The law grants residents who terminate the contract according to the notification terms the right to request a refund of prepaid rent. However, the law gives the landlord the right to deduct an amount equivalent to one month's rent from the prepayment before returning the balance.
This rule is particularly relevant for those who have paid rent several months in advance. Under the new co-living system, rent is defaulted to be paid monthly unless otherwise agreed upon by the tenant and landlord. Furthermore, utility bills for electricity and water are included in the rent unless the parties agree otherwise.
The law provides a special mechanism for residents who do not receive the due funds. If the tenant does not recover the amount within 30 days after notifying the landlord of the refund request, they can file a petition with the Enforcement Court to recover the rent.
The Rental Disputes Center has exclusive jurisdiction over disagreements concerning the rights and obligations established by the co-living law. The method of providing notice may also be significant in case of subsequent disputes.
The law stipulates that termination notices can be delivered via a notary, sent to the email registered in the lease agreement, handed over in person, or delivered by any other legally approved method. Therefore, residents should ensure that the notice is submitted using one of the recognized methods, rather than relying on an informal verbal conversation.
Another important protection for co-living residents is contained in the law: a change of property owner does not automatically terminate the contract. If the co-living property transfers to a new owner, the existing lease agreement remains valid, and the resident has the right to continue residing there according to the contract signed with the previous owner.
Co-living agreements must specify the lease term and remain valid until its end unless terminated in accordance with the law. These provisions are part of a structure that formalizes co-living in Dubai through permits, registered lease agreements, living standards, and specific rights and obligations for owners, authorized institutions, and residents.
