Renting Property in Dubai: Current Features

9:26 pm  |  09.09.2023

About 80% of Dubai residents are renters, making buying an apartment for rental purposes a profitable investment. However, the Dubai real estate rental market has its own characteristics. Here, the rights of each party are equally protected: it is difficult to evict a tenant even after the end of the lease agreement, and landlords do not have the right to inflate the cost of services.

Renting Housing in Dubai: Regulatory Documents

The relationship between the parties is strictly controlled by the special agency RERA and laws 33, 26, and 43.

Dubai Land Department (DLD)

Long-term rental of real estate in Dubai is available only to residents of the country, but an owner with any legal status can rent out housing. To do this, you will need to conclude a lease agreement with the tenant. The agreement form is available for download on the official website of the Dubai Land Department (DLD).

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The agreement completed and signed by the parties is registered in the Ejari system within 30 days in one of the following ways: at DLD branches, online on the department’s website, or through the DubaiREST application. To successfully register, you will need to provide the following documents:

  • A note indicating the electricity meter number (if the metering devices are shared);
  • Copies of identification documents of the tenant and owner of the property, copies of real estate documents;
  • Original contract.

The registration fee is paid by the tenant.

Its amount in the typing center is 220 AED, online or in the mobile application – 175 AED. As confirmation of successful registration, the tenant receives an Ejari certificate.

Registration of the agreement is the responsibility of the lessor. All changes to the document and additions to it are also subject to registration.

The validity period of the lease agreement is established by the parties. Upon its expiration and in the absence of objections from the tenant, the contract is automatically extended for a year, the tenant continues to live in the premises under the same conditions.

If there is a registered agreement, the tenant cannot be evicted from the rented premises, even if the property has been sold to a new owner. If either the tenant or landlord wishes to modify the terms of the existing contract, such as duration or rent amount, one party must inform the other at least 90 days prior to the contract’s expiration.

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By agreement of the parties, the contract may be terminated early. It is noteworthy that even the death of the homeowner is not grounds for eviction. In this case, all contractual relations are inherited.

Duties of the Parties

Participants in a transaction are required to adhere to certain rules established by law and specified in the contract. In particular, the owner cannot visit the rental property without the consent of the tenant. The property being rented out must be maintained in a condition that allows full use during the entire contract term. The owner is responsible for any defects due to technical wear and tear.

The tenant is obliged to make payments under the contract on time and return the premises in proper condition (with the exception of cases of natural wear and tear). The tenant’s monthly payments include utility bills and municipal fees. The property owner makes an annual payment for house maintenance.

A tenant can be evicted early if:

  • he fails to pay rent or comply with other terms of the lease;
  • housing is subleased without the consent of the owner;
  • housing is used for illegal activities;
  • it damages the condition of the premises.

But even in these cases, the owner of the property is obliged to send the tenant an official letter in advance (1 month in advance) demanding to vacate the premises. You also need to get permission from RERA to evict the tenant.

If the contract is not renewed, taking into account the terms of the lease specified in it, it is necessary to notify the owner of the eviction in advance. If such notice is not received, the landlord has the right to demand compensation from the tenant.

In case the landlord intends to perform significant repairs on the property, reconstruct or demolish it, sell it, or utilize it for personal residence (provided they don’t own another dwelling), then after the lease agreement is over, the landlord can legally evict the tenant. He must inform the tenant of his decision at least 12 months in advance.

If the lease has expired, but the tenant does not communicate, the owner can send a letter certified by a notary demanding eviction. If the notice remains unanswered, you can file a lawsuit.

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About the Increase in Cost

Law No. 43 of 2013 regulates rent increase restrictions. Use DLD’s online calculator to determine the maximum rate increase.

Despite increased demand, landlords cannot increase the cost of services at their discretion. According to Art. 9 of the Law “On Rent”, homeowners must set a rental rate acceptable to each of the parties. Moreover, it is prohibited to increase it during the first two years. The owner is obliged to inform the tenant about the increase in cost no less than 60 days before the date of renewal of the contract. If a tenant does not agree to the new lease terms, they can file a complaint with the Rental Dispute Resolution Center (RDSC).

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