Renting a Property in Dubai: Things to Know

For newcomers in particular, renting a property in Dubai may be both an exciting and complicated procedure. It's crucial to be knowledgeable before signing a lease because of the ever-changing real estate market, the variety of housing options available, and the particular legal requirements. Before renting a home in Dubai, keep the following points in mind.

1. Understand the Rental Laws and Regulations

The Real Estate Regulatory Agency (RERA) oversees the rental market in Dubai and makes sure that landlords and tenants are treated fairly. Tenants can avoid overpaying by using the RERA Rental Index, which offers recommendations on fair rental rates. Law No. 26 of 2007, which delineates the rights of both landlords and tenants, must also be adhered to in rental agreements.

Example: If your landlord unexpectedly raises the rent, you can check the RERA Rental Index to determine if the increase is legal.

2. Pick the Proper Site

There are numerous residential areas in Dubai that may accommodate a range of budgets and lifestyles. Think about things like accessibility to places of employment, public transportation, educational institutions, and entertainment venues.

Example: If you work in DIFC, a property in Business Bay or Downtown Dubai would reduce commute time. Alternatively, if you prefer a quieter environment, Jumeirah Village Circle (JVC) or Arabian Ranches might be better options.

3. Examine the terms of payment.

The majority of landlords in Dubai require one to four checks per year, and rent is normally paid in postdated checks. Although it is less typical, some homes accept monthly payments. Make sure the terms you negotiate fit your budget.

Example: If your budget is tight, try negotiating a 12-cheque payment plan instead of paying in one or two installments.

4. Verify the Landlord and Property Ownership

Before making any payments, ensure that the landlord is the rightful owner of the property. Ask for a copy of the Title Deed and verify their identity through the Dubai Land Department.

Example: If you’re dealing with an agent, ask them to show their RERA certification to confirm they are a legitimate broker.

5. Recognize Extra Expenses

Tenants must budget for other costs beyond rent, such as:

• A security deposit is typically equal to 10% of the rent for furnished properties and 5% of the rent for unfurnished ones.

• Agency costs (usually five percent of the rent each year)

• Ejari registration charge (legal contract registration costs AED 220)

• Connection fees for DEWA (Dubai Electricity and Water Authority)

Example: If your rent is AED 100,000 per year, expect to pay around AED 5,000 in agency fees and a similar amount as a security deposit.

6. Examine the Maintenance Duties

Make it clear who is in charge of maintenance—the landlord or the tenant. Major maintenance is the landlord's obligation, whereas small repairs are typically funded by the renters.

Example: If your air conditioning unit breaks down, check your contract to see if the landlord is responsible for repairs before arranging for a technician.

7. Register Your Tenancy Contract with Ejari

Rental agreements must be formally registered with the Dubai Land Department via the Ejari system. It protects both landlords and tenants and is required for setting up utilities and residence visas.

Example: If you need to apply for a visa renewal or get a new internet connection, an Ejari registration certificate will be necessary.

8. Recognize the Eviction Guidelines

If a landlord wants to sell the property or utilize it for personal purposes, they have to give a written notice of 12 months. Planning ahead is much easier when you are aware of your rights.

Example: If your landlord tells you they want to move in, they must give you a formal 12-month notice before asking you to vacate.