Furnished Apartment Lease Agreement (UAE)

A Furnished Apartment Lease Agreement in the UAE is a tenancy contract between a landlord and a residential tenant that grants the tenant the right to occupy a fully or semi-furnished apartment for an agreed term, at an agreed annual rent, while both parties accept defined responsibilities for the furniture, appliances, and fittings included in the letting. The document differs from a standard unfurnished tenancy contract in two significant respects: it incorporates an inventory schedule recording the condition and completeness of all furnished items at the commencement of the tenancy, and it typically stipulates a security deposit of 10% of the annual rent rather than the 5% deposit customary for unfurnished units, reflecting the additional asset risk posed by the furniture and appliances.

Furnished apartment leases are common throughout the UAE, particularly in Dubai's premium residential communities including Dubai Marina, Jumeirah Beach Residence (JBR), Downtown Dubai, Business Bay, Palm Jumeirah, and Dubai Hills Estate, where owners letting short to medium-term furnished units attract a consistent market of newly arrived expatriate professionals, intra-company transferees, and families in transition between permanent homes. In Abu Dhabi, furnished lets are prevalent on Saadiyat Island, Al Reem Island, and in the central business district.

The governing legal framework for furnished residential tenancies in Dubai is Law No. 26 of 2007 Regulating Relationships Between Landlords and Tenants in the Emirate of Dubai, as amended by Law No. 33 of 2008. These laws apply regardless of whether the unit is furnished or unfurnished: the addition of furniture to the letting does not change the landlord's and tenant's statutory rights and obligations, but it does add a layer of asset-management duties. The Real Estate Regulatory Agency (RERA), operating under the Dubai Land Department (DLD), oversees Ejari registration for all residential tenancies including furnished lets. For short-term holiday rentals of furnished apartments, separate licensing requirements apply under Dubai Tourism's holiday home regulations, and those arrangements fall outside the scope of this agreement.

A well-drafted UAE furnished apartment lease on forms-legal.com protects the landlord's furniture investment, gives the tenant a clear record of what was present and its condition on arrival, and establishes the framework for fair deposit accounting at the end of the tenancy.

A Furnished Apartment Lease Agreement UAE is needed in any of the following circumstances.

A property owner lets a fully or semi-furnished apartment to a residential tenant on a fixed term of one year (the most common duration in Dubai) or longer. The lease captures the inventory so the landlord can claim for missing or damaged items at the end of the tenancy. This is especially common in high-demand communities such as Dubai Marina, JBR, Downtown Dubai, and Palm Jumeirah, where furnished apartments command premium rents.

A relocation management company or corporate housing provider places an employee in a furnished apartment. Many multinational employers represented in DIFC, Tecom, or Dubai Internet City provide fully furnished short-stay accommodation for new hires during their settling-in period, and the furnished lease formalises the sublease or direct tenancy arrangement and ensures Ejari registration for visa and utility purposes.

An investor or holiday-home licensee switches a property from short-term holiday rental to a medium-term furnished tenancy (typically six months to two years) to achieve more stable occupancy. The Department of Economy and Tourism (DET, formerly Dubai Tourism) holiday home regime applies only to short-term letting; longer stays require a standard furnished tenancy agreement registered through Ejari under RERA's oversight.

A property management company lets a furnished apartment on behalf of an owner and needs a contract that clearly delineates the owner's asset inventory and the tenant's obligations with respect to it. Management companies such as Driven Properties, CBRE, and Allsopp & Allsopp Lettings routinely use furnished lease agreements that include detailed inventory schedules.

A tenant who rented an unfurnished apartment and subsequently requested furnishing — perhaps agreeing with the landlord to add appliances, furniture, or a fit-out allowance — needs the original contract supplemented or replaced by a furnished lease that documents the new inventory.

In each case, the furnished apartment lease agreement should be signed before the tenant takes possession, and the inventory schedule should be completed and signed at the same time, ideally with photographs attached as an annex.

A complete UAE Furnished Apartment Lease Agreement should contain the following provisions.

Party identification: Full legal names, Emirates ID numbers, and contact details for both landlord and tenant. Where the landlord is a company, the Trade Licence number issued by the Dubai Economic Authority (DEA) or the relevant emirate authority should be stated.

Property description and DLD reference: The full address of the apartment including building name, unit number, floor, community, and emirate. The DLD title deed number or Makani number is required for Ejari registration and should be recorded.

Inventory schedule: A detailed schedule listing every item of furniture (beds, sofas, dining table and chairs, wardrobes), appliance (refrigerator, oven, washing machine, dishwasher, air-conditioning units), electronic equipment (television, audio system), and miscellaneous items (curtains, blinds, artwork, kitchenware). Each item should note its make, model, condition, and any pre-existing damage. On forms-legal.com, the template provides a structured inventory field to record these details.

Furnishing level: Whether the apartment is fully furnished (furniture, appliances, and kitchenware), semi-furnished (furniture and white goods only), or furnished with white goods and kitchen appliances only.

Tenancy term: Start and end dates. Most Dubai furnished tenancies run for one year and renew annually.

Annual rent and payment structure: The annual rent in AED, the number of post-dated cheques, and the cheque dates. Fewer cheques generally attract a lower overall rent.

Security deposit: For furnished units, 10% of annual rent is the Dubai market standard. The deposit grounds and return timeline should be stated.

Ejari registration details: The Ejari number once registered, and the obligation on the relevant party (typically the landlord or their agent) to register within the required period.

Maintenance threshold: A monetary threshold below which the tenant is responsible for minor repairs, with major structural and mechanical repairs remaining the landlord's obligation under Article 16 of Law No. 26 of 2007.

Rent increase cap: Reference to the RERA Rental Index and Decree No. 43 of 2013, and the 90-day notice requirement under Law No. 33 of 2008.

Dispute resolution: Reference to the Rental Disputes Settlement Centre (RDSC), which has jurisdiction over all registered Dubai residential tenancies. The Dubai Courts' Execution Court enforces RDSC judgments. Templates on forms-legal.com include this clause by default.

Completing a UAE Furnished Apartment Lease Agreement involves several practical steps.

Step 1 — Conduct an inventory inspection: Before signing, the landlord and tenant should walk through the apartment together and record the condition of every item of furniture and appliance on the inventory schedule. Photograph every room, every piece of furniture, every appliance (including the inside of the oven and refrigerator), and all walls, floors, and fixtures. Timestamps on photographs are important. Both parties should sign the inventory schedule.

Step 2 — Enter party details: Record full legal names, Emirates ID numbers (for residents) or passport numbers (for those whose UAE residency visa is pending), and contact details. Ensure the landlord's name matches the DLD title deed.

Step 3 — Complete property details: Enter the apartment address, DLD title deed number (found on the title deed certificate issued by the Dubai Land Department), apartment type, and floor area.

Step 4 — Record the tenancy term and rent: Enter the start and end dates, the annual rent in AED, the number of post-dated cheques, and the security deposit amount. Check the RERA Rental Index via the Dubai REST app or the DLD website to verify that the agreed rent is within the permitted range for the community and apartment type.

Step 5 — Set maintenance and conditions: Define the minor maintenance threshold (the maximum cost the tenant bears per repair), confirm whether alterations or pets are permitted, and confirm whether sub-letting is allowed.

Step 6 — Register the tenancy: After signing, apply for Ejari registration through the Dubai REST app, the DLD online portal, or an approved Ejari typing centre. Upload the signed contract, the title deed, the Emirates IDs of both parties, and the DEWA premises number. The Ejari certificate typically issues within 24 hours. The registered Ejari certificate enables the tenant to connect DEWA utilities, access the RERA Rental Index for rent increase checks, and use the address for UAE residency visa renewal through the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP).

Several specific legal requirements govern furnished apartment leases in the UAE.

Ejari registration (mandatory in Dubai): Law No. 26 of 2007 (Article 22) requires all residential tenancy contracts to be registered through the Ejari system. The certificate is the legal proof of tenancy and is required to connect DEWA accounts, renew residency visas, and file RDSC claims. The DLD imposes an Ejari fee of approximately AED 220.

Rent increase cap (Decree No. 43 of 2013): Any rent increase on renewal must comply with the RERA Rental Index calculator. The cap ranges from 0% (if current rent is within 10% of the market average) to a maximum of 20% (if more than 40% below market). Notice must be given at least 90 days before expiry per Article (1) of Law No. 33 of 2008.

Security deposit handling (UAE Civil Code Federal Law No. 5 of 1985): The deposit is held by the landlord as trustee. Deductions on vacating must be supported by invoices or professional quotations. Under Article 25(3) of Law No. 33 of 2008, the landlord must return the deposit within a reasonable time; the RDSC routinely treats 30 days as the standard. The landlord may deduct for missing or damaged inventory items beyond fair wear and tear, provided an item-by-item comparison of the entry and exit inventory schedules is available.

Maintenance obligations (Article 16, Law No. 26 of 2007): The landlord is obliged to maintain the property in a condition fit for the agreed use. Structural repairs, replacement of major appliances due to age or manufacturing defect, and HVAC overhaul remain the landlord's responsibility regardless of what the contract says. A contract clause purporting to transfer these obligations to the tenant is unenforceable against the tenant.

Skipping the inventory schedule at move-in is the most costly mistake in a furnished tenancy. Without a signed, dated inventory showing pre-existing damage, the landlord has no reliable evidence to support deduction claims, and the tenant has no defence against unfair charges. Both parties benefit from a meticulous entry inventory, ideally with time-stamped photographs of every room, every piece of furniture, every appliance, and all walls, floors, and fixtures.

Setting the deposit at 5% instead of 10% for a furnished unit understates the landlord's asset exposure. If a tenant damages or removes furniture worth AED 20,000 and the deposit is only AED 5,000 on an AED 100,000 annual rent, the landlord faces a significant shortfall. The 10% deposit is the Dubai market standard for furnished units and is recognised by the RDSC in deposit adjudications.

Failing to register with Ejari leaves the tenant unable to connect DEWA utilities in their name and without RDSC standing to file a tenancy dispute. Many furnished tenants assume that because the landlord has managed utilities informally in the past, registration is optional. Under Article 22 of Law No. 26 of 2007, registration is mandatory, and the consequences of non-registration — inability to access the RDSC, inability to obtain a DLD-verified tenancy certificate for visa purposes — can be severe.

Not specifying a maintenance threshold leads to disputes about whether a broken appliance is a minor repair (tenant's cost) or a landlord obligation under Article 16 of Law No. 26 of 2007. A clear AED threshold — commonly AED 500 to AED 1,000 per incident — avoids ambiguity and aligns with how most Dubai property managers handle minor maintenance.

Ignoring the RERA rental increase cap on renewal. Some landlords in high-demand furnished markets (JBR, Dubai Marina, Downtown Dubai) attempt to impose increases above the permitted percentage under Decree No. 43 of 2013. Tenants who are aware of the RERA Rental Index calculator can challenge excessive increases at the RDSC and are likely to succeed.