UAE Tenant Screening: Can Landlords Reject Low Credit Scores?

Khaleej Times

UAE Tenant Screening: Can Landlords Reject Low Credit Scores?

UAE landlords can legally reject prospective tenants with poor credit history using the new Etihad Credit Bureau screening tool, but they cannot evict existing tenants if scores drop.

The rental landscape in the UAE is experiencing a significant shift with the introduction of the Etihad Credit Bureau’s (ECB) new Tenant Screening solution. This tool allows private landlords to request the credit scores of prospective tenants before signing a lease. But does a low credit score give a landlord the legal right to reject an applicant?

According to legal experts, the short answer is yes.

## Landlords Have No Legal Obligation to Accept Every Applicant Asma Siddiqui, Senior Associate at BSA Law, recently clarified that UAE tenancy laws do not regulate how landlords choose their tenants, nor do they force a landlord to accept any specific applicant. Because of this, landlords are entirely within their legal rights to reject a tenancy application if a prospective tenant has a low credit score or presents other financial risks.

This new screening service doesn't stem from a brand-new law. Instead, it operates within the UAE's existing legal framework—specifically Federal Law No. 6 of 2010 on Credit Information and Cabinet Resolution No. 115 of 2021. These laws already permit non-financial institutions to access credit details, provided they have the individual's consent.

## How Does the Tenant Screening Process Work? The system relies heavily on mutual consent and the UAE PASS application. Here is how the process unfolds:

A credit score is determined by factors like timely utility bill payments, credit card history, and active loans. While a high score can speed up lease approvals, a poor history of late payments can make securing a prime rental property much harder.

## Can a Drop in Credit Score Lead to Eviction? A common concern among tenants is whether a landlord can evict them if their financial situation changes and their credit score drops mid-lease.

The legal answer here is a firm no. Siddiqui emphasized that the ECB’s screening tool is strictly a pre-contractual assessment. Once a tenancy contract is signed and executed, a landlord cannot evict a tenant simply because their credit score has decreased.

Evictions in the UAE remain strictly bound by statutory tenancy laws. Landlords can only demand eviction under specific circumstances, such as: * Non-payment of rent * Subletting without the landlord's written consent * Using the property for illegal activities * The landlord requiring the property for personal use (subject to the proper statutory notice period of 12 months)

## What This Means for Real Estate Agents For Dubai property agents, this update is a powerful tool to streamline tenant vetting and build trust with landlord clients. You can now advise landlords to utilize this screening tool to minimize the risk of rental defaults.

However, agents must also manage expectations. Remind your landlords that tenant consent via UAE PASS is mandatory, and that a credit check is only useful *before* the contract is signed. For tenants, agents should stress the importance of maintaining a healthy credit score in the UAE to ensure smooth rental transactions in an increasingly competitive market.

Based on reporting from Khaleej Times. Summary and analysis by Propilot AI.

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