Dubai is the land of opportunity and a higher living standard. Even though many immigrants from different parts of the world relocate to Dubai, not everyone can afford to purchase property there. Given the bullish real estate trend in Dubai, some people prefer to rent a property and enjoy all the perks of living in Dubai.
However, renting a property in Dubai has its considerations. It involves a host of best practices, legal considerations, and dos and don’ts that require a deeper understanding.
Therefore, in this article, we will discuss all there is to know about how to rent a property in Dubai. Let us begin by discussing two distinct types of rental properties in Dubai.
Types of Rental Properties: Long-Term and Short-Term Rentals in Dubai
We can divide rental properties in Dubai into two categories: i.e. long-term and short-term rentals. If you’re new in Dubai, it might be difficult to determine which is best for you.
Learning the key differences between them will help you rent a property in Dubai that fits your needs. The differences are as follows:
1. Legalities and Documentation
Short-term rentals are available on a daily, weekly, or monthly basis. They are best suited for tourists or people traveling for business/work. Short-term rentals are ideal because you don’t need to fulfill many legal requirements, unlike long-term rentals.
Conversely, you need to sign a lease contract of more than six months to rent a long-term property. There are also other types of registrations and documents involved (Ejari, DEWA, etc.), which we’ll discuss further.
2. Luxury and Utilities
Secondly, short-term rentals are often furnished with complete furniture, amenities, and utilities. On the other hand, long-term rentals are available both as furnished and unfurnished options. You also have to pay separately for utilities.
Renting a Property Long-Term: Key Things to Know
Whether you’re moving to Dubai for a higher standard of living or to work there permanently, a long-term rental property is the ideal choice.
Before jumping in, you must learn about key factors that could greatly impact your living experience. Use the following factors as a checklist before finalizing the deal with the landlord.
Here are some important things to consider when renting a property in Dubai for the long term.
- Setting a budget helps you avoid overspending. Before looking for properties, research how much rental properties cost and set a relative budget.
- Choose a property close to hospitals, schools, shopping malls, etc., especially if you’re moving in with family. Fuel costs due to long distances can add up to your monthly budget.
- Choose a location close to stations and public transport spots if you don’t have a car.
- Deeply research the area you’re interested in and learn about the people living there.
- If you have picked a building, inquire about onsite facilities like pools and gyms.
- Thoroughly investigate the landlord’s rental practices and background. You can get help from the rental status sheet here.
- Ask the landlord about any outstanding utility bills on the property, and mention in the contract that you won’t pay for any outstanding bills.
- Apart from the rent, hidden costs (discussed further) like Ejari registration, DEWA registration, and security deposits can put a dent in your budget. Make sure to account for them beforehand.
- If living with friends, make sure to read up on laws and regulations regarding it.
- Avoid living with roommates who are messy or have a criminal record.
- When splitting rent with roommates, get the terms and conditions in writing to protect yourself from missed rent and legal troubles.
- Make sure to abide by the rules and regulations put forward by the landlord. Failure to do so might cause eviction or legal problems.
How to Rent a Property in Dubai: The Complete Process
Once you have understood the basics of how to rent a property in Dubai, you can follow this step-by-step process to find a suitable property.
Looking for a Rental Property—Use Online Portals or Real Estate Agents
You can choose either way to help you rent a property in Dubai. Experienced and professional real estate agents can recommend the best locations based on your budget. They can inform you about common issues with the building you’re interested in.
On the other hand, accessing online real estate websites like Orchid Homes makes it really easy to find the appropriate rental property. You can apply different filters such as price range, property types, covered area, etc.
Some of the property types you can search for are:
- Apartments
- Commercial rental properties
- Villas
- Penthouses
- Apartment buildings
- Condominiums
- Single-family units
Visiting the Property
Once you have decided about a particular property/location, the next thing to do is visit the property. It is crucial, and we highly discourage purchasing a rental property without visiting it first.
On your visit, find out whether the property needs any maintenance. You should also learn about the nearby facilities, amenities, and the neighborhood.
Check how well the property fits your needs and go over things like the number of rooms, bathrooms, availability of utilities, kitchen, comfort, sunlight direction, etc.
Using the RERA Rental Calculator
Before negotiating the rent with the landlord, use the RERA Dubai rent calculator to check your property’s rental index. It would give you an estimate of how much rent you’ll have to pay based on the economy and current rental rates,
You can use this information to negotiate better rent with the landlord.
Negotiating and Making an Offer
After learning about the rental bracket, you can negotiate and make an offer to the landlord (or property management company). During the negotiation, decide the payment methods you’ll use for rental payments.
Cheques are usually the preferred method for paying rent. However, DLD has recently started allowing direct debit rental payments. It’s a good option if you wish to automate payments and eliminate cheque errors.
Depending on your convenience, you can choose quarterly or bi-annual payment durations. Generally, landlords in Dubai don’t prefer monthly payments. Instead, they prefer single or multiple post-dated cheques.
Reserving the Property
After the negotiations, paying a security deposit to the landlord to reserve the property is recommended.
We also recommend you capture photographs of your property to be eligible for a security deposit refund. Ask for a copy of the landlord’s ID and property’s title deed to protect yourself from rental scams in Dubai.
How to Rent a Property in Dubai: Agreements & Documents
In this section, we will discuss different documents and registrations needed to rent a property in Dubai.
Tenancy Agreement
Renting a long-term property in Dubai involves registering and signing some important legal documents. The first document in this regard is the tenancy agreement.
The tenancy agreement in Dubai outlines the terms and conditions between the tenant and the landlord. It is a legal contract that is regulated and recorded by RERA. A tenancy agreement is also known as a “lease agreement” or a “rental agreement.”
Let us take a look at the key laws and regulations outlined in the tenancy agreement in Dubai.
Key Tenancy Terms & Conditions
- Discuss the tenancy term and contract length/tenure with the landlord before signing the agreement.
- As a tenant, you should ensure the rent is relative to the RERA rent calculator. Landlords can raise the rent by 20%, given that the current rental value is 40% lower than the market. However, the landlord must issue you a 90-day notice each time before increasing the rent.
- The tenancy agreement should also mention the exit clause detailing conditions where tenants can end the lease early.
- The tenancy agreement will include an eviction clause detailing conditions that permit the landlord to issue you an eviction notice.
Before signing the tenancy contract, take as much time as you need to read it thoroughly. Go over the fine print and consult a legal professional if there’s any confusion.
Ejari Dubai Registration
After signing a tenancy contract, you must register it with the Ejari system using their online portal or Dubai REST app. You’ll need the following documents for Ejari registration:
- Landlord’s passport
- Tenant’s Emirates ID
- Original unified tenancy contract
- Property’s title deed
- An assigned number of PoA (Power of Attorney) without enclosing it, given that the PoA is issued in Dubai
- An enclosed PoA (Power of Attorney), if issued in an Emirate other than Dubai
You’ll also need to pay the following fees for registering your tenancy agreement on Ejari Dubai.
- Ejari Registration Fee: AED 155 + VAT
- Knowledge Fee: AED 10
- Innovation Fee: AED 10
Renewing Ejari Dubai Registration
Landlords and tenants can renew their Ejari registration by submitting the following documents:
- For Landlords
- Copy of property ownership documents
- Emirates ID or valid passport
- For Tenants
- Emirates ID copy
- Tenancy agreement
Some other documents may also be required, such as:
- Tenant’s ID proof
- Title deed
- Copy of previous Ejari contract
- Recent DEWA bill copy
- Validation of the provided data by submitting an undertaking when applying for renewal via Real Estate Services Trustee
DEWA Registration
DEWA (Dubai Electricity and Water Authority) is Dubai’s official utility services provider. After Ejari, you must register with them while renting a property in Dubai.
Like Ejari, you can register on DEWA using their mobile application (Play Store and Apple Store). The app offers multiple functionalities like new registration, disconnection, etc.
You’ll need to provide the following details to open a new DEWA account in your name:
- Tenant’s passport copy & Emirates ID
- Landlord’s passport copy
- Ejari number
- DEWA premises number
- Filled and signed DEWA form
- Security deposit
DEWA Fee Payment
You can make payments for DEWA registration using different methods, such as credit cards, direct debits, or paying utility bills through ATMs.
In addition to the bills, you’ll have to pay a Dubai Municipality Housing fee, which is 5% of the annual rent. You have the option to pay it by dividing it into monthly installments.
Move-in Permit
Specific communities in Dubai might require a move-in permit to rent a property in Dubai.
Your landlord will tell you if the specific property you’re interested in requires such a permit. You can find out how to apply for it on the developer’s website. There’s usually a 5-day processing period.
Communities requiring a move-in permit include Arabian Ranches, The Springs, Downtown Dubai, Dubai Marina, The Meadows, The Greens, and Emirates Hills.
You may need to submit the following documents for a move-in permit:
- Certificate of payment completion
- Emirates ID/ passport copy
- Copy of the property’s most recent Service Charge Receipt (by the landlord)
- Copy of the Tenancy Contract
FAQS
- What happens if I cancel my rental contract early?
You should include the terms and conditions related to early cancellation of tenancy in the contract. If you don’t, you may have to pay two months’ rent as a penalty for early cancellation.
Sometimes, your landlord may waive this fee if you can help them find another tenant in your place.
- How important is Ejari registration in Dubai?
Ejari registration is mandatory for renting a property in Dubai. This document serves as a rental contract between the landlord and the tenant. It protects the rights and outlines the responsibilities of both parties.
- How can I file a dispute against my landlord?
Yes. If the landlord isn’t fulfilling their due obligations and responsibilities as per the laws, tenants are entitled to submit a complaint to the Rental Dispute Settlement Centre (RDC).
If your landlord isn’t fulfilling their obligations in the tenancy agreement, you can file a complaint against them at the Rental Dispute Settlement Center (RDC).
Final Words
This extensive guide should be the first step in understanding how to rent a property in Dubai.
However, only an experienced Dubai real estate agent knows the ground realities. Such a professional can guide you about the best properties with the best prices and protect you from rental property scams.
Therefore, hiring a real estate agent is the right way to ensure that your hard-earned money is invested in a rental place that is safe, comfortable, and up to the quality standards you are hoping for!
