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Renting A Property In Dubai? Know The Rental Guidelines

We list the most important things you got to realize about renting an apartment in Dubai. Follow these simple rules for an easy renting experience within the city.

We list the most important things you got to realize about renting an apartment in Dubai. Follow these simple rules for an easy renting experience within the city.

Renting A Property In Dubai

1. The first and most important rule is to work only with RERA-registered brokers. If your broker does not have a Broker ID card, work with somebody else.

2. Register your contract with Ejari to form it legal. Attend any typing center together with your documents and register your contract with Ejari by paying AED 195 fee. Deposits, like security deposits or others, should even be stated in your Ejari. Make sure that you get a receipt for the deposit and retain this alongside proof of ownership of the property and a replica of the landlord’s passport.

3. One of the good things about renting in Dubai is your landlord cannot raise your rent on a whim consistent with Decree No (43) of 2013. If he/she does so, you’ll file a case with the Rent Committee supported Decree No (26) of 2013.

4. Increase in rent must follow the Rent Index set by RERA.

   a) If your rent is up to 10% less than the average rental value of similar units in Dubai, your landlord cannot increase your rent.

   b) If your rent is 11-20% less than the average rent of similar properties in the area, the landlord is legally entitled to a rent increase of 5%.

   c) Your landlord can hike your rent by 10% if your current rate is 20-30% less than the going value.A 15% increase is often made if your rent falls short by 30-40% of the typical rent.

   d) Your rent can be increased by 20% if your rent is more than 40% less than the average rental value of similar units.

5. Use the rental calculator to understand what proportion your landlord can legally raise the rent.

How does it work? Please contact any of Dubayt’s property rental specialists. Call on +971 52 648 0099

6. Your landlord should offer you a 90-day notice period should he or she wish to boost the property rent.

7. A landlord can only request eviction by giving 12 months’ written notice. This notice should be within the sort of a notarized document or sent via registered post.

8. If your landlord wishes to sell his or her property, he/she has to inform you by giving 12 months’ written notice.

9. If your landlord has asked you to evict the property due to her or his immediate next of kin moving in, then for 2 years from the date of the eviction, he/she cannot re-let the property.

If you’re trying to find a property to rent then we have got a lot of exciting options for you. Explore Dubayt’s latest properties for rent in Dubai.

Know More About Dubai Rental Situation

Dubai's New Rental Rules

Dubai Land Department (DLD) has stated that a new draft law is set to keep rents in Dubai unchanged for three years. This follows a prediction by the DLD’s Director-General in early January this year, after the DLD’s recommended clauses for the new law were accepted. No date has been set for when this law will come into force, but an official announcement will be made following the law’s publication in the official gazette.

Dubai's Current Rental Situation

The rental sector represents a significant proportion of the real estate market in Dubai. Landlords and tenants in Dubai generally dreaded the annual tenancy renewal. The haggling on the renewal rent, whether the market was going up or down, whether adequate notice was given by the landlord to the tenant, resulted in tenants looking to move to different properties, possibly having to downsize, and landlords potentially ending up with vacant properties.

Tenants not willing, or unable, to find suitable alternatives would end up swallowing the bitter pill that was the rent increase. In more dire situations, especially given the impact of the Covid-19 related restrictions on the economy in the past year, some Dubai residents would have had no choice but to leave Dubai.

Dubai's Real Estate Market Solution

This new law providing for a rent freeze is intended to create stability in Dubai’s real estate market, both for tenants, by alleviating any worries about increasing rents, and for landlords, whose disappointment at not being able to increase rents should be balanced by the fact that their property is less likely to end up vacant. The DLD anticipates that this law will stimulate and encourage investments in Dubai and increase the occupancy rate of real estate properties in the Emirate.

Judge Abdelqader Mousa, chairman of Dubai Rental Disputes Center, stated that landlords may not increase the rent for residential properties for three years from the date of the beginning of the tenancy. However, the rent may be increased after the expiry of that period based on the rental index. Importantly for existing tenants, Judge Mousa also stated that for tenancies concluded before the law coming into force, rent increases will be calculated only three years after the law comes into force.

The exact wording of the new draft law is not available for review yet, leaving some questions unanswered. Based on the currently limited information available, we provide our predictions on how this law will impact commercial property and free zones.

Dubai Commercial Properties For Rent

Although it is not certain, we believe based on the statement of Judge Mousa, the rent freeze will apply only to residential properties, not commercial ones. By extension, we believe malls will likely not be subject to the three-year freeze either.

Free zones

Whether free zones are covered in the draft law remains to be seen. Based on the above, we estimate that there will be a hybrid impact in free zones. Residential properties located within free zones will have rents frozen for three years, whereas offices, retail, and other non-residential property rents will not be subject to the freeze.

Locked in for three years?

This was not specifically addressed in the DLD announcement. One of the key purposes of this new law is to help stabilise tenants in Dubai, give them an alternative to moving out every year in search of cheaper properties, as is currently the case. Given that intent, we believe tenants are unlikely to be forced into a three-year lock-in period, and the law would likely provide for some notice period for terminating the tenancy.

The final text of the law is yet to be made public, and it may provide for extensions and carve-outs to the three-year freeze in rent. Even if this law does not apply to non-residential property, it is likely to attract expats to move to Dubai and encourage resident expats to lock in fair rates, creating a stabilising effect on Dubai’s residential real estate sector.