All You Need To Know When Renting A House In DUBAI

John Doe August 25th, 2020

Dubai is one of the most sought after places in the world to live a luxury and comfortable life. Such demand means that there is always a house getting sold or a property getting rented out, so there is a dire need to educate potential residents about the rules and regulations about these properties. Today we will guide you step by step about renting out properties in Dubai.

Potential tenants who are visiting Dubai for the first time often really ignore tenancy contracts and their details. This makes them more vulnerable to penalties and liabilities. Always be thorough when going through tenancy contracts to know what your obligations are and what you are liable for. Beware of cost whether it be maintenance cost or broker fee so that it is easy for you to plan ahead. Unlike in many countries, Dubai doesn’t give you an opportunity to pay in 12 months, so in order to keep your cash flow cycle correct you need to plan wisely ahead of getting a property on rent. Says Jason Hayes, CEO of LuxuryProperty.com, Dubai’s luxury brokerage.

DOCUMENTS

Documents are vital when renting out a property in Dubai either you are a resident or expatriate. For residents Emirates ID is important and as far as expatriates are concerned a copy of passport along with the signature page is a prerequisite to rent a property in Dubai. For some people, their IDs or passports may be in processing, in such a case you need to request the Ministry of Emiratisation and Human Resources to issue you a letter in this regard.

IS A BANK ACCOUNT NECESSARY?

Many new potential residents in Dubai are unaware of the fact that any one dealing in property whether it be purchasing or just renting out, all transactions have to channel through bank accounts by means of cheque or pay orders. So in many cases, people usually get all the documents ready and have already found a suitable place but don’t possess a bank account which then is very difficult for them because half of the work is already done and now you will have to wait for the bank.

EJARI

EJARI is a tenancy contracts electronic registration system in Dubai that regulates all such transactions. When all your documents are completed you are required to submit it EJARI through an online portable which is mandatory and verifies that all documents are legal and complete as per the laws and regulations of Dubai.

Such as any other developed country in the world, Dubai has this system to validate tenancy contracts. When everything is validated by government authorities, there are rare instances where a dispute arises between the parties. Once EJARI accepts your application, an EJARI number is issued to the tenant which will then help him get basic amenities like water, electricity, communication etc.

MAINTENANCE COSTS

Every tenancy contract has a clause related to maintenance. Other than payment of maintenance charges there are some responsibilities of the tenant relating to safe keeping and maintaining the Landlord’s property. For example, a tenant is responsible to keep all furniture and fitting in decent condition as they were given to him. Any major maintenance costs are borne by the Landlord like mechanical changes, electrical fitting and air conditioning. Usually, the landlord has to pay anything that exceeds 500 AEDs as a rule of thumb

INITIAL DEPOSIT AND BROKER FEE

In Dubai, tenants are required to pay 5% of the total rental amount of the house as initial deposit. This is the usual case and it can get up to 10% if the rented house has furniture and fittings. Once your contract is over, this amount is refunded back to you provided that the property is in decent condition.

Broker’s or Agency fee often amounts to 5% of the rental amount and some agencies and brokers charge a fixed 5000 AEDs for each transaction. These rates are outlined in the brokerage agreements.

OTHER PERMISSION REQUIRED TO MOVE IN

Dubai is distributed into many communities and sub-communities. Some of these communities require the tenants to get a move-in permit as security to move all their furniture and other stuff. The date and time of moving is communicated in advance with the removal company, the administrators, and the security of the community and the tenant. You should discuss community-related requirements with your broker in advance and get things ready in order to avoid any inconvenience.