fam Properties' real estate specialists have compiled a guide for new residents on what to expect when renting property in Dubai. This article provides an overview regarding payment options, rental laws and what is required from the tenant to rent property in Dubai.
Type of Lease Agreement
Most landlords in Dubai rent their property on a fixed-term contract, an agreement between the landlord and tenant to uphold the obligations of the contract within a time frame. Rental agreements are usually annually in Dubai. Tenants should thoroughly understand the contract before signing anything. Ask many questions to the landlord or real estate agent before signing the lease agreement. The contract should define the term of the agreement, amenities, listed costs, payment method and which maintenance responsibilities belong to the tenant and landlord.
Proper Documentation Required
Dubai's rental laws require tenants to present their national passport, visa copy and Emirates ID to rent an apartment. New arrivers should seek an unfixed contract if they do not have possession of all appropriate documents.
Landlords rarely accept monthly rent payments in Dubai and will request rent to be paid in cheques; from a single cheque or up to 4 cheques. This system provides assurances to landlords that the tenant will follow the rules and uphold his duration of the contract. The agreed upon number of cheques for payment is usually negotiable. Landlords might lower the rent amount if fewer cheques are paid in a year.
Renting property in Dubai requires a security deposit, which is typically 5% of the annual rent amount and a real estate agent's fee. The security deposit will be refunded upon the completion of the lease agreement. Tenants will also pay the Dubai Electric and Water Authority(DEWA), which can cost approximately AED 2,000 just to register and a monthly amount which depends on utility usage.
Avoid Bounced Cheques in the UAE
Submitting a cheque while knowing it will bounce is a criminal offence in the UAE. Article 401 of the Penal Code of the UAE states that a person can face imprisonment or a fine if proven to deliberately issue a cheque known to bounce. Be aware if landlords include a penalty amount to be paid by the tenants if a cheque bounces. Clarify if this clause exists before signing the lease agreement. Tenants are not required to pay any penalty if it is not specified in their lease agreement.
Register With Ejari is Mandatory
Ejari is a rental portal by the Real Estate Regulatory Agency(RERA) to maintain and improve Dubai's rental market transactions. Registering with Ejari is mandatory for all residents renting in Dubai. Tenants are typically responsible for Ejari registration costs. Unregistered Ejari tenants will not be able to file a legal case against their landlord in Dubai. It is highly recommended to register with Ejari as soon as the lease agreement begins.