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Renting in Dubai

With Dubai’s rising skyline, there are multiple options, developments and communities available on lease for residential and commercial purposes. The choice is based on a range of factors from location and prices to facilities and infrastructure. It is imperative to know about the rules, rights and responsibilities of tenants, landlords and rental agreements in the Emirate. Most importantly, consulting a registered broker is a must.

In addition to payment of rent, tenants must pay housing fees to Dubai Municipality which is calculated at 5% of the yearly rental charges. Freehold property owners pay 5% of the value of the accommodation as per the RERA rental index for their location. For convenience and ease of payment, the housing fees are added to the monthly DEWA bills. In case, your landlord/broker has not registered the lease agreement, this can be done online through RERA's online portal called Ejari. If you prefer to register the rental contract in person, then you need to visit the Dubai Municipality Al Twar Centre. Take copies of the tenancy contract, a copy of the title deed, passport copies of both landlord and tenant, DEWA electricity bill showing account number and AED 195 as payment.

In case your annual rent has come down, you will need to register an updated tenancy contract with Dubai Municipality. You can either visit their offices, or do it online (register as new user to create login and password).
 
All tenancy contracts are renewable and clauses such as non-renewable are not recognized by Dubai Government. Rental increases in Dubai are only as per Law No. 43 of 2013, which states that rental increases can only be applied when compared with the average rent in the area as per RERA increase calculator. As per the law, the following applies:
 
If the tenant is paying
10 per cent or less below the average rent - no increase
Between 11 and 20 per cent below the average rent - 5 per cent increase
Between 21 and 30 per cent below the average rent - 10 per cent increase
Between 31 and 40 per cent below the average rent - 15 per cent increase
Between 41 and 50 per cent below the average rent - 20 per cent increase
 
Rental increases are also subject to Law No. 26 of 2007 (called "Law Regulating Relationship between Landlords and Tenants in the Emirate of Dubai") which states that a landlord must give 90 day's written notice before renewal for any proposed rental increase, subject to Law No. 43 of 2013 above.
 
In case a landlord wishes to evict a tenant, the landlord can only do so through a 12 month's written notice to vacate, in the form of a notarized document or via registered mail. The landlord must specify in the written notice if he/she intends to sell or use it for himself/herself or for immediate next of kin. The condition of sale or use by landlord/next of kin is valid for the next two years, which means the landlord who evicts a tenant on these grounds cannot rent the property for the next two years. In case you have been evicted and you find out subsequently that your landlord has relet the property, then you can open a rental dispute.
 
For any rental disputes between landlord or tenant in Dubai including free zones, you will need to refer to the Dubai's Rent Dispute Settlement Centre, based at Dubai's Land Department. This Centre has replaced the earlier DM Rent Committee for rent disputes and will settle rental disputes within 30 days.  
 
Published Date : 13/06/2017Back


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