A Comprehensive Guide to Renting in Dubai
Dubai, one of the smartest metropolitans in the world, offers an enviable lifestyle full of luxuries and amenities. Considering the top-notch lifestyle, security and career opportunities, many consider living, working and investing in the city.
Laws and initiatives in the real estate sector have eased the buying and renting processes. Besides, the availability of rental properties and flexible options, such as short-term rentals, makes renting a preferable choice for many.
If you are moving to the Emirate and have no idea about the next step to rent in Dubai, this is a complete and comprehensive guide to help you at each step.
ULTIMATE GUIDE TO RENTING PROPERTY IN DUBAI
Renting a property has become a popular choice for many. Tourists and corporate officers visiting Dubai prefer to rent. Moreover, expats and nationals working in Dubai can also find long and short-term rentals in Dubai.
However, if you are new to the Emirate, this comprehensive guide to renting properties in Dubai will help you understand the laws, regulations, criteria, contracts and processes involved.
What are Long-term and Short-term Rentals in Dubai?
Dubai caters to the needs of thousands of tourists and expats from all over the world. The city provides two rental options: long-term and short-term rentals.
Short-term rentals are available on a daily, weekly or monthly basis. For instance, when a tourist or business personnel visits the Emirate, they can choose from daily or monthly short-term rentals in Dubai.
Long-term rentals refer to tenancy contracts signed for more than six months. Moreover, long-term rentals in Dubai have specific requirements such as Ejari, whereas short-term rentals don’t require contract registration.
Additionally, the main difference between long and short-term rentals in Dubai is that the latter are mostly furnished apartments or houses and include utilities, such as water and electricity in the rental amount. However, long-term rentals are available as furnished and unfurnished alongside the utility bills are paid separately.
Why Should You Go for Long-term Rentals or Short-term Rentals in Dubai?
When you decide to rent in Dubai, you have several options to choose from. While short and long-term rentals have their own set of pros and cons, it is essential to analyse your requirements and staying duration when renting in Dubai.
Short-term rentals are highly preferred by tourists and business professionals who visit Dubai for a shorter period of time. Meanwhile, if you have moved to the city for employment purposes and plan to stay more than six months, it is recommended to choose a long-term rental.
Factors to Consider When Renting a Property for Long-term
Tenants need to consider several aspects when renting a property. Following are some essentials that should be part of your house or apartment renting checklist:
- Determine your budget.
- Find a location that is in proximity to hospitals, shopping malls, schools, and offices. If you don’t have a car, it is better to choose a location near stations and stops for public transport in Dubai.
- Check for the facilities available in the building, such as the swimming pool and gym.
- Inspect the property condition properly.
- Check the landlord’s rental background by requesting the rental good conduct certificate in Dubai.
- Look out for any outstanding utility bills.
- Calculate the hidden renting costs in Dubai to avoid any future budget constraints.
- If you are renting with friends in Dubai, learn about the laws and regulations related to it.
- Since rooms for rent in Dubai are also available, avoid roommates who are bad, messy or toxic.
- Always find out the details and regulations when renting with roommates in Dubai.
Tenants or landlords can file a rental dispute in Dubai if any party causes inconveniences. Therefore, abiding by the rules is essential for a beneficial lease contract.
How to Find a Property
After creating a checklist and deciding between long and short-term rentals, the next thing is to find the right property. Here are guidelines that will help find a perfect home to rent in Dubai.
Search Online or Hire a Real Estate Agent
While hiring a real estate agent verified by RERA has its advantages, potential renters can search for rental houses in Dubai on online platforms such as dubizzle and Bayut. Moreover, authenticated and approved real estate agents can bring experience to the table and help search for the property that meets your criteria.
Besides, you can add filters and search the property according to your needs. For instance, users can search according to the following property types:
- Residential or commercial apartment
- Residential or commercial villa
- Hotel apartments
- Holiday homes
Additionally, you can search according to the rent value, number of rooms and covered area.
Visit the Property
After you have searched for a rental property in Dubai, the next step is to pay a visit before renting one. During your visit, assess the property if it requires maintenance. Besides, check the functionality of the apartment and see if it matches your requirements.
RERA Rent Calculator
After visiting the property, you can find out the average rent using the RERA rent calculator. For instance, if you want to rent a studio apartment in DAMAC Hills, you can check its rental index which ranges from AED 36,000 to AED 44,000 per annum according to the RERA rental index calculator.
That said, the RERA rental calculator will help tenants negotiate the rent according to the property conditions. Moreover, tenants or landlords can benefit from the lease valuation certificate in Dubai. This certificate will help find the approximate rental value as per the Dubai Land Department (DLD).
Make an Offer
After you have used the RERA rent calculator and visited the property, make an offer to the landlord or the property management company. When making negotiations, ensure that you decide on rental payment methods in Dubai. Moreover, you can also decide on bi-annual or quarterly rent payments and pay them through multiple post-dated cheques.
Reserve the property
It is a common practice that tenants pay a security deposit in advance when they rent in Dubai. However, it is recommended that you click the photographs of the property at that time to receive a complete security deposit refund in Dubai.
Moreover, an important tip before renting is to ask for a landlord’s ID copy and title deed to avoid rental property scams.
Tenancy Agreement In Dubai
After finalising the deal and reserving the property, the next step is to sign a tenancy agreement in Dubai. Ejari, an initiative by RERA, governs and records all tenancy contracts. Besides, if any party is involved in breaking the rules, they may have to face serious consequences.
Let’s understand tenancy laws and regulations and how to register on Ejari.
RERA rental laws in Dubai regulate the relationship between tenants and landlords. Moreover, Dubai rental rules state the following terms and conditions for lease contracts:
- Discuss the tenancy term. For instance, to rent a villa in Dubai you will have to discuss the contract length with the landlord.
- Rent should be set according to the RERA rent calculator. However, landlords can increase the rent by a maximum of 20% if the rental value is 40% lower than the market value. That said, the landlord will have to provide a 90 days notice before increasing the rent.
- Mention an early exit clause. It means that the tenants have the right to terminate the lease early in Dubai if they don’t get the basic rights when renting a property.
- According to the tenancy laws, landlords can also serve a tenancy eviction notice in Dubai if the tenants don’t pay the due rent and bills or cause any damage to the property.
- It is important to add a clause about tenancy terms when drafting a lease agreement.
Ensure that you read the tenancy contract thoroughly before signing the agreement. After signing the tenancy agreement, the landlord or tenant must register the contract into the Ejari system by RERA.
Ejari Registration and Renewal
After signing the contract, you can register your lease agreement at the Ejari portal. The following documents are required to register for Ejari in Dubai:
- Landlord’s passport
- Tenant’s Emirates ID
- The title deed of the property
- Original unified tenancy contract
- An assigned number of the Power of Attorney (PoA) is required without enclosing it (if the PoA is issued in Dubai)
- An enclosed PoA is required if it is issued in another Emirate
You can simply register Ejari online via the Dubai REST app by submitting the required documents and the following fees:
- Ejari Registration Fee: AED 155 + VAT
- Innovation Fee: AED 10
- Knowledge Fee: AED 10
Users can request Ejari renewal in Dubai by submitting the following documents:
- Landlord needs to submit the following documents:
- Emirates ID or valid passport
- Copy of property ownership documents
- Tenants need to provide the following documents:
- Tenancy agreement
- Emirates ID copy
Some additional documents are required if the Ejari renewal is for a residential property on rent in Dubai:
- Recent DEWA bill copy
- Submission of undertaking form to validate the provided data when applying for renewal via Real Estate Services Trustee
- Tenant’s ID proof
- Title deed
- Copy of previous Ejari contract
Rental Payments in Dubai
After registering Ejari, another important thing to consider when renting in Dubai is rental payment methods. Although the preferred mode of payment is via cheques. However, DLD has recently announced direct debit rental payments in Dubai. This system will automate payments and reduce cheque errors.
Dubai Electricity and Water Authority (DEWA) is an official utility service distributor in the Emirate. When you rent in Dubai, you need to register with DEWA as well.
Requirements for a New Connection
Here is the requirement to open a new DEWA account:
- DEWA premises number
- Ejari number
- Landlord’s passport copy
- Tenant’s passport copy & Emirates ID
- DEWA form
- Security deposit payment
You can complete all the processes via DEWA mobile application. From registering a new account to requesting a DEWA disconnection, the smart app offers convenient and easy processes.
DEWA Bill Payment
You can pay DEWA bills through several methods. You can use credit cards, set up direct debits or pay utility bills in Dubai via bank ATMs.
Dubai Municipality Housing Fees
Alongside utility bills, the Dubai Municipality Housing fee is added to the DEWA bill. Dubai Municipality fees are calculated as 5% of the annual rent. Tenants can pay this fee by dividing it into monthly instalments.
Here are the frequently asked questions about renting in Dubai.
HOW MUCH IS THE RENT COST IN DUBAI?
Rent cost depends upon several factors, such as location, amenities, facilities, neighbourhood and the property’s condition. However, you can read dubizzle 2022 Dubai annual rental market report to get an in-depth analysis of average rental costs and find out popular areas to rent in the Emirate.
IS EJARI MANDATORY IN DUBAI?
Yes. Since Ejari protects the rights of landlords and tenants and regulates the tenancy contract, it is essential to register the lease agreement.
CAN I FILE A RENT 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).
DO I NEED A MOVE-IN AND MOVE-OUT PERMIT WHEN RENTING IN DUBAI?
Yes, popular projects and communities require the tenants to apply for move-in and move-out permits. For instance, you can request the move-in and move-out permit from Dubai Properties, Emaar or any other project by submitting the required documents.
That wraps up our comprehensive guide to renting in Dubai. You can find residential and commercial properties to rent in Dubai and ensure that you follow the complete procedures.
Stay connected to the dubizzle property blog for more guides and insights on the real estate market in the UAE.