UAE landlords are under no legal obligation to rent their properties to any applicant and may refuse tenants with poor credit history or financial risk indicators, according to a legal expert.
A new tenant screening solution launched on Sunday allows UAE landlords to request prospective tenants' credit scores. Photos by KT File
“UAE tenancy laws do not regulate how landlords select prospective tenants, nor do they impose any obligation to accept an applicant. Accordingly, a landlord is legally free to decline a tenancy application based on a low credit score or any other financial risk indicator,” said Asma Siddiqui, Senior Associate at BSA Law.
The clarification comes after Etihad Credit Bureau on Sunday launched a new Tenant Screening solution, enabling private landlords to request the credit scores of prospective tenants. However, the information is only shared once tenants approve the request through UAE PASS. Tenants are also under no legal obligation to share their credit score with landlords.
Siddiqui said the new tenant screening service by Etihad Credit Bureau simply enables landlords to access a tenant’s credit score with the tenant’s consent via UAE PASS.
She added that the service is not based on a new law, but operates under the existing legal framework — primarily Federal Law No. 6 of 2010 on Credit Information (as amended), which already allows non-financial entities to access credit reports with an individual’s consent, and Cabinet Resolution No. 115 of 2021, which operationalises access to credit data for non-financial institutions.
How to improve credit score
A credit score is a number that represents an individual’s credit history and ability to repay loans and financial obligations. It acts as a rating that indicates a person’s overall creditworthiness.
A high credit score generally means faster approval for personal loans and other financial products. Applicants with higher scores may also qualify for lower interest rates, helping them save on loan repayments.
Some of the key factors influencing a credit score include an individual’s payment track record for bills and loans, as well as the number of loans and credit cards they hold.
Timely payment of utility charges, credit card bills, personal and auto loan installments and other dues, improve UAE residents’ credit scores. Even a few late payments can drag credit score down.
According to Etihad Credit Bureau, a credit score can be obtained for Dh10.5, while a full credit report costs Dh84.
Eviction
Commenting on whether landlords can ask tenants to vacate properties if their credit scores decline, Siddiqui said eviction remains strictly limited to the specific statutory grounds listed under UAE tenancy laws. These include non-payment of rent, illegal use of the property, subletting without permission, or a landlord seeking personal use of the property with proper notice.
“A credit score change is not one of these grounds. Once the tenancy contract is duly executed, a landlord cannot evict a tenant simply on the basis of their credit score declining. It is pertinent to note that the Etihad Credit Bureau service is purely a pre-contract screening tool. It does not amend tenancy legislation or create any new eviction rights,” she added.
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Waheed Abbas
Waheed Abbas is Assistant Editor, covering real estate, aviation and other business stories that dir...