UAE Residency Rights: Can You Stay in Your Company-Rented Dubai Apartment After Resigning?

A Dubai resident, Michael, has inquired about his rights concerning a company-rented apartment after resigning from his job. His employer provided the apartment as part of his employment package, with the tenancy contract and rent payments handled by the company. Michael assumed he and his family could remain in the apartment until the contract expired, given it's their home. However, his HR department indicated he might have to vacate immediately upon resignation because the company is the legal tenant.

The expert clarifies that if the employer is listed as the tenant on the tenancy agreement and Ejari, their contractual relationship with the landlord is primary. Michael's right to occupy the apartment stems from his employment, not an independent tenancy. He is advised to review his tenancy agreement, Ejari registration, and employment contract or company housing policy for specific clauses regarding accommodation upon employment termination.

While it's not guaranteed that the family can stay, it's also not a certainty they must leave. Michael is encouraged to proactively communicate with the landlord. The landlord might be willing to establish a new tenancy agreement in Michael's name after the company's obligations are settled. From the landlord's perspective, keeping a known and responsible occupant could be preferable to finding a new tenant and facing potential vacancies. Any new arrangement must be formally documented, avoiding informal understandings.

In a separate query, Daniel from Manchester is considering purchasing an off-plan apartment in Dubai with a developer's advertised 'guaranteed 10 per cent return for three years after handover.' He questions the source of this high return and whether the developer is obligated to cover shortfalls if rental income is insufficient. He also expresses suspicion about guarantees significantly exceeding market rates.

The advice given is to scrutinize any investment promising a 'guaranteed' return. It's crucial to identify who is providing the guarantee and to obtain the written rental guarantee agreement. Investors should understand how the 10 per cent is calculated (e.g., based on purchase price or amount paid) and whether costs like service charges, furnishing, and management fees are deducted before or after the guaranteed payment. Restrictions on occupying or selling the property during the guarantee period should also be clarified.

Crucially, the promised income should be compared with the realistic open-market rental value. A significant difference suggests the 'guarantee' might be funded through other means, potentially a higher purchase price. The recommendation is to evaluate the property itself—its comparable prices, realistic rent, location, developer reputation, and resale demand—before considering the incentive. The ultimate test is whether one would be happy owning the apartment at the given price even if the guarantee were removed.