How to lease a property?
lifestyle
PROPERTY
IN THIS ARTICLE:
The majority of expats coming to the UAE rent apartments. The relationship between tenant and landlord is strictly regulated, with the rights of both parties protected by legislation and through a unified property arrangement system. The following is a selection of key information about renting in Dubai.
01
Regulation
Consider some specifics of regulation Dubai’s key law in the rental of premises is Law No. 26 of 2007 governing landlord-tenant relations. It was supplemented in 2008 by Law No. 33, which contains new rules and amendments to certain articles of Law No. 26.
Property payment
Please that the property can only be increased after 2 years from the conclusion of the contract.
Property increases are only possible by a certain amount set by RERA (Ministry of Real Estate of Dubai).
Thus, parties can use a special online calculator on the Dubai Land Department (DLD) website to calculate the increase in value. DLD has also released a special DUBAI REST Application where such a calculator is available. You need to select the type of property and enter all the necessary details (area, floor area, number of rooms, etc) into the proposed form in order to use the service. The online calculator will then calculate how much the property price can be increased by.
Property increases are only possible by a certain amount set by RERA (Ministry of Real Estate of Dubai).
Thus, parties can use a special online calculator on the Dubai Land Department (DLD) website to calculate the increase in value. DLD has also released a special DUBAI REST Application where such a calculator is available. You need to select the type of property and enter all the necessary details (area, floor area, number of rooms, etc) into the proposed form in order to use the service. The online calculator will then calculate how much the property price can be increased by.
Change of property ownership
If the owner of the property changes, this does not affect the tenant’s right to remain in the flat until the end of the period stated in the agreement.
Auto-renewal
At the end of the tenancy agreement, it is automatically renewed for the same period or for a year if the tenant continues to live in the property and the landlord does not object. The terms and conditions of the property remain the same.
Repairs and other work on the premises
The tenant is obliged to ask the landlord for official permission to make changes to the premises (repairs etc.).
Early termination of contract
It is virtually impossible to terminate the contract early without objective reasons and the consent of the other party.
Amendments to the contract
If one of the parties wants to make changes to the contract, it must inform the other party at least three months before the end of the contract (for example, to increase the rent).
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02
Where can I find a property?
Short-term leases
Apartments for short-term rentals can be found on airbnb.com
Long-term and short-term leases
You can also use dubizzle.com for long-term and short-term rentals. There you can also search for office and other non-residential premises.
Realtor services
Some people use the services of estate agents who can find the right property quickly. If you need help with your search, write to us. We have an extensive network of realtors in the UAE who can find any property (apartment, office, warehouse or studio).
03
How to apply the rent?
The Dubai government has approved a model lease agreement. The document is in two languages — Arabic and English — making it convenient for expats.
The tenant pays the rent at the time of signing the agreement, usually by cheque. It is common for the tenant to write 4 cheques for 1 year and pay the rent once every 3 months.
All contracts have to be registered with RERA through the online system EJARI. Information about the property, the parties to the transaction and the terms and conditions of the contract are entered into the system. Usually, the registration of the contract in EJARI is initiated by the owner of the premises. A unique barcode is assigned to each registered agreement.
The fee is paid by the tenant if the real estate agency is involved in the conclusion of the contract. The fee is usually 5% of the annual rent.
The tenant pays the rent at the time of signing the agreement, usually by cheque. It is common for the tenant to write 4 cheques for 1 year and pay the rent once every 3 months.
All contracts have to be registered with RERA through the online system EJARI. Information about the property, the parties to the transaction and the terms and conditions of the contract are entered into the system. Usually, the registration of the contract in EJARI is initiated by the owner of the premises. A unique barcode is assigned to each registered agreement.
The fee is paid by the tenant if the real estate agency is involved in the conclusion of the contract. The fee is usually 5% of the annual rent.
04
Municipal tax
Most emirates impose a municipal rent tax on property. It is usually paid by the tenant or their employer. The tax is levied on the annual rent.
The tax rate in Dubai is 5% for apartments and 10% for commercial property. In Abu Dhabi the tax rate for apartments is 3% and in Sharjah it is 2%.
The tax rate in Dubai is 5% for apartments and 10% for commercial property. In Abu Dhabi the tax rate for apartments is 3% and in Sharjah it is 2%.
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