Finding a good rental home in Dubai is no less than immense pleasure for renters. You must be excited to sign the agreement and move in as soon as possible, right? However, one mistake which renters often make is that they do not pay full attention to the tenancy contract agreement in Dubai. This can cause disagreements and problems in future.
Therefore, it is necessary to practice due diligence when signing a tenancy agreement. We have prepared a tenancy contract checklist in Dubai. Addressing the elements mentioned in the list can help you avoid trouble in future. Let’s get started.
What is a Tenancy Agreement in Dubai and UAE?
Before we talk more about the tenancy contract checklist, let’s take a moment to understand what a tenancy contract really is. Essentially, it is a legal agreement between the landlord and the tenant that outlines the terms of renting a property. In Dubai, these rental agreements are regulated by the Dubai Land Department (DLD) and adhere to Law No. 26 of 2007.
The contract typically covers key details such as the rent amount, the lease duration, and the responsibilities of both parties. It also includes specific clauses that both the tenant and landlord have agreed upon. This document is crucial in establishing the rental relationship and ensures that both parties are clear on their rights and obligations.
Once both parties sign it, the tenancy contract becomes a legally binding agreement enforceable by law. Although the contract must align with local regulations, it can be customized as per the unique needs and arrangements of both the tenant and the landlord.
What are the Elements of Tenancy Contracts in Dubai and UAE?
Following are the key points covered in tenancy contracts in Dubai or UAE.
- Names and contact details of the tenant and the landlord
- Property address, including location, building name, and size
- Property plot number
- DEWA premise number
- Intended use of the property
- Length of the lease
- Agreed-upon rental amount
- Security deposit amount
- Payment method
- Date of contract signing
It is important to note that depending on agreement between tenant and the landlord, there can be other clauses in the tenancy contract.
Tenancy Contract Checklist for Dubai and UAE
Right, here are the key elements for the tenancy contract checklist for Dubai and UAE.
1. Verify the Broker
In the UAE, there are strict regulations in place to protect consumers from unlicensed businesses. If you are looking to work with a real estate agent, it is crucial to confirm their registration with the government. Agents in Dubai should be listed with RERA and on the Dubai Rest App.
In other Emirates, real estate agents must hold a broker license. Always ask for proof of registration before utilizing their services.
2. Request Proof of Maintenance Payments
In order to avoid issues with common areas and building facilities, check that the landlord has paid all maintenance bills. It is wise to ask for printed proof of these payments to prevent any legal troubles in the future.
3. Check the Landlord’s Background
Before signing any rental agreement, it is important to investigate the landlord’s history. Look into their rental track record to identify any potential issues, such as bankruptcy, pending lawsuits, or tax liens. This can help you avoid complications later on.
Also, ensure that the name on the title deed matches the name on the landlord’s passport or Emirates ID to verify that they are the actual owner of the property.
If you are renting in Dubai, request a Rental Good Conduct Certificate from the landlord, which is issued by the Dubai Land Department (DLD).
4. Verify Property Listings
Dubai has strict measures for the fairness and verification of the property listings. Still, it is highly recommended to check property listings from registered real estate companies’ websites such as Dubbizle, Bayut, PropertyFinder, Orchid Homes Real Estate, etc.
5. Visit the Property in Person
Do not rely solely on photos or videos provided by the owner or agent. Schedule a physical visit to inspect the property’s condition and ensure all the amenities you are paying for are functional. If anything requires repair, ask the landlord to fix it before you sign the lease.
6. Read the Contract Carefully
Both landlords and tenants are legally bound by the terms outlined in the tenancy contract. Make sure to read the document thoroughly. Pay close attention to any conditions that might not be immediately obvious. Look out for asterisks (∗), footnotes, or text in small fonts that could indicate unfavorable terms.
7. Discuss Repairs and Maintenance
Clarifying responsibilities for maintenance and repairs is essential. By law, landlords are generally responsible for these tasks unless otherwise agreed. Discuss who will handle repairs, who will pay for them, and how the process will be managed.
Sometimes, landlords may ask tenants to cover maintenance costs and deduct them from the rent, so it is best to address these issues upfront.
Read more about property maintenance laws and relevant disputes in Dubai.
8. Get Everything in Writing
After reviewing the contract, make sure it includes all the terms you have discussed with the landlord. Avoid relying on verbal agreements, as they are not legally binding.
9. Negotiate Rent and Payment Terms
In the UAE, rent is typically paid in advance through post-dated cheques or other agreed-upon methods. Discuss the annual rent and the timeline for the post-dated cheques to avoid penalties for late payments.
10. Discuss Early Termination of the Contract
Real estate laws require both parties to honor the contract’s duration, and one party cannot terminate it without the other’s consent. Agree on conditions that would lead to automatic termination of the contract.
If you travel frequently or are unsure how long you will stay, consider short-term rentals, which offer flexibility and may exempt you from signing a longer-term lease.
After the tenancy contract is prepared, it must be signed by all parties in the presence of a witness for it to become legally binding. Once you have signed the document, be sure to include the Ejari registration certificate along with copies of the identification documents for both the tenant and the landlord (such as Emirates ID or passport).
By addressing these key points before finalizing a rental agreement, you can help ensure a smoother and more secure renting experience.
Frequently Asked Questions
What documents are required for a tenancy contract in Dubai?
To set up a tenancy contract in Dubai, you will need the following documents:
- Copies of the tenant’s and landlord’s passports and visas.
- The title deed or proof of ownership for the property.
- A copy of the tenant’s Emirates ID (if available).
- The Ejari registration form (which you can find online or at authorized typing centers).
- The latest DEWA (Dubai Electricity and Water Authority) bill.
- A receipt for the security deposit (if applicable).
Who signs the tenancy contract in Dubai?
As per the Dubai Land Department (DLD), the authorized signatories for rental contracts in Dubai include:
- The tenant
- The landlord
- A licensed property management company
- The landlord’s legal representative holding a power of attorney
How do you download the tenancy contract?
To download a tenancy contract in Dubai, follow these steps:
- Access the Dubai Rest App or DLD Website: Sign in or register using your Emirates ID.
- Navigate to the Ejari Section: Locate your contract by entering the Ejari number or property details.
- Download the Contract: Click to save the contract as a PDF.
You can also visit an authorized Ejari typing center for help.
Summing it up
Practicing due diligence when choosing a rental home and signing a tenancy contract in Dubai can save you from troubles in future. Addressing all elements in the above-mentioned tenancy contract checklist in Dubai makes sure you have covered all bases. Alternatively, you can get professional help from a registered real estate agent in Dubai. Feel free to reach out to us if you need help with the tenancy agreement.