Finding a perfect rental home is a moment of joy and most tenants get eager to sign the tenancy agreement and move in. A tenancy agreement includes terms and conditions restricting you from doing certain things as a tenant. Therefore, before you get carried away with happiness, it is necessary to go through the tenancy agreement carefully.
To cater to this, here we have drafted a tenancy contract checklist which includes all necessary aspects that should be considered before signing the contract.
What Is Included in Tenancy Agreement
The tenancy agreement includes the following important information.
- Names and contact details of landlord and tenant
- Complete details regarding the property
- Details about property premises and their usage
- Rent amount and payment method
- Amount of security deposit
- The time period of contract validity
- Responsibility for repair and maintenance
These are the general clauses that should be included in the tenancy agreement. Other than that, special conditions can also be included, as per the agreement between both parties. Now that you are aware of the general terms, let’s move towards the tenancy agreement checklist.
Tenancy Contract Checklist for the UAE
Following are all the aspects that need to be catered to before signing a tenancy contract.
Verify Broker
UAE has strict rules and regulations against unlicensed businesses and people availing of their services. Therefore, if you are seeking assistance from a real estate agent in the UAE, make sure to verify their registration with the government. Dubai-based agents are listed on RERA and on Dubai Rest App. Whereas, other Emirates issue a broker licence to real estate agents. Ask for any of the above-mentioned registration proof from the agent before leveraging their services.
Check Landlord’s Background
Prior to taking any step towards signing the contract and sealing the deal, check the rental track record of the landlord. This will help in identifying any red flags related to the landlord such as bankruptcy, a pending lawsuit on the property or a tax lien to avoid any hassle in the future.
Pay close attention to the name spelling in the title deed and on the passport or Emirates ID to confirm the individual signing the agreement is the real owner of the property.
If you are renting a property in Dubai, ask for a Rental Good Conduct Certificate from the landlord issued by DLD.
Ask for Proof of Maintenance Bills
In case of pending bills, building authorities can restrict tenants from using common areas and facilities of the building. Therefore, it is necessary to ensure that the landlord has paid all the maintenance and other related payments. It is recommended to ask for printed proof of the cleared bills, to avoid any legal issues in the near future.
Visit the Property Physically
It is advised not to rely on photographs or videos of the property shown by the owner or agent. Schedule a visit to the property and closely inspect its physical condition. Ensure that all the necessary amenities you are paying for are in working condition. In case, any of it needs repair, ask the landlord to get it repaired prior to signing the contract.
Check for Property Listing
dubizzle is one of the largest property portals in the region known for authentic property listings. That said, you can verify whether the property is available for rent in the UAE or not, by the verified property listings on the portal.
Read Contract Thoroughly
Landlords and tenants are legally bound to cater to the terms and conditions mentioned in the tenancy contract. This signifies thorough reading of the contract printed on the paper in a clear and readable font. Look for subtle conditions mentioned in the contract that you have not agreed upon. Moreover, keep an eye on Asterisk (∗), text in small fonts or in footnotes to avoid agreeing on a condition that is not in your favour.
Get Everything in Written
Once you have thoroughly read the contract, ensure it includes all the conditions that you have discussed with the landlord. Do not rely on verbal discussions with the owner, as it does not hold any legal relevancy.
Discuss Damage and Repair Payments
Talking over the maintenance and repair is the most crucial element of the tenancy agreement checklist. According to the law, the landlord is responsible for maintenance and repairs of the building, until mutually agreed upon. If the landlord is solely responsible for the repair, discuss the repair process, who will pay and who will overlook the property during maintenance.
This is because, in some cases, landlords ask tenants to maintain the building and deduct the expenses from the annual rent. That said, for a healthy tenant-landlord relationship, it is better to talk over maintenance-related things prior to signing the agreement.
Negotiate Rent and Payment Method
The rent in UAE is paid in advance through a post-dated cheque or in other forms, as per the convenience of both parties. The time duration of these post-dated cheques depends upon the mutual agreement between both parties. Negotiate the annual rent and time duration of post-dated cheques, because, in case of delayed rent payment, tenants might have to pay the penalty.
Talk Over Early Contract Termination
Real estate law obligates both parties to complete the time duration of the contract and one party can not terminate it without the approval of another. Mutually agree on the conditions that automatically lead to the contract termination.
If you are a frequent traveller or not sure about your duration of stay in the rented property, it is better to opt for short-term rentals. The short-term rentals in UAE facilitate tenants to move in and out at their convenience, exempting them from signing a contract. Moreover, if you plan on moving out of a place before the contract expires, ending tenancy agreement early in Dubai can help you learn the whole process.
This was the tenancy contract checklist that tenants must adhere to before signing a legal contract with the landlord. If you are a tenant looking for an apartment, read our blog on things to consider when renting an apartment.
To know comprehensive details regarding the rental market of UAE, browse through our 2022 annual rent property market report of Dubai and other Emirates.
Stay tuned to dubizzle’s property blog for more information on the land department tenancy contract checklist.
