A Guide to Hassle-Free Renting
You will have a lot of choice when renting in Dubai. The city offers many great options and world-class amenities to meet every tenant’s needs, taste and budget. However, it is of course best to pick an apartment or villa with care from the outset.
Here are some other things to consider: -
1. It does not cost you any more money if you use your own broker to help you search for the ideal home.
In Dubai, the Tenant pays the Landlord’s brokerage fee. This is 5.25% (including VAT) of the rent agreed or 10.5% on furnished tenancies.
Your broker can organise the viewing appointments, help you with rental negotiations and guide you through the Tenancy Contract and assist you through the process in items 2 to 8 below at no extra cost to you. Your broker can actually save you time and money.
2. Know your requirements
You can choose from a range of communities in Dubai – from affordable, mid-range to premium. Budget is a key factor. Amenities are another important consideration. Look whether the community or villa has a shared pool, transport links, nearby schools. A convenience store or a coffee shop can increase the quality of life. Make a list of features and divide them into “needed” and “good to have”. Properties that tick more items in the “needed” list should be given priority.
3. Start your search online
Begin the search on property portals and online listings, and narrow down your selection based on specific needs like the number of bedrooms, type of property (villa, town house, apartment, serviced apartment, furnished, etc.) and the rent you can afford. Also check details like nearby transport links, schools, leisure zones and retail areas.
4. Choose an agent wisely
Pick a reputable RERA-certified agent. Get references from contacts and relatives. A broker should assist you in identifying the property or community and preparing and reviewing the contract. Ask about the agent’s history and the number of tenants they have placed in the last year. Check their website and testimonials.
5. Check the landlord’s demands
Some landlords now accept 6 or 12 cheques, but most still demand one or two post-paid cheques. Hence, a tenant needs to check this first with the owner or agent. It is also essential to consider the different costs of renting, such as security deposits, brokerage fee, relocation fees, utility fees etc..
The tenant must check the monthly payment terms, and both parties should agree on the date of payment. Also, the notice period should be agreed with the landlord and agent, and maintenance cost responsibilities and limits should be discussed and confirmed. It is also vital for the tenant to do thorough property inspection/snagging. This ensures there are no surprises after moving in and when moving out and getting the deposit.
6. Be aware of fake listings
The Dubai Land Department (DLD) introduced in 2016 the Trakheesi permit, which is mandatory for all real estate companies. Every listing/advertisement must include a permit number. The permit protects consumers and owners. It allows customers to validate if the listing is genuine or not and the owners can identify if an authorised agency has listed their properties. It has been made mandatory for online property advertisements to eliminate misrepresentation and fraud.
Anyone who finds a fake listing or advertisement should report the matter immediately. The online portal gives you an option to report it to them directly.
7. Sign a contract with care
Residential tenancy contracts in Dubai are usually for a one-year term. A rental agreement consists of the main page which states the names and contact details of both parties and information about the property, such as the rent, deposit amounts, and contract’s start and end date. This is the main page considered for Ejari registration. There are additional pages for any addendum or other terms and conditions agreed by both parties.
The key terms would include the responsibility or cover of maintenance, early termination or vacating/renewal clauses, insurance cover and contact details of both parties. In the clause related to property maintenance, the tenant would be responsible for minor or preventive maintenance up to 500 AED to 1,000 AED, depending on the property type. For a luxury or high-end property this is often a higher amount.
If the property is furnished, an inventory list will be attached.
The early-termination terms can vary in each agreement. The standard contract states a one-month notice and an equivalent of two months’ of rent as a penalty and the balance amount is returned to the tenant. However unforeseen circumstances can lead to early termination of the contract. Moreover, a tenant or landlord must notify each other 90 days before the expiry of a valid lease contract for any change in the agreement, or for the tenant to renew or vacate the property. Any increase in rent should follow the rental increase calculator.
8. Ready the documents
A tenancy agreement requires copies of the title deed and the owner’s passport, visa and Emirates ID (if a UAE resident). If the owner has authorised and given a POA, then the same would apply with the POA holder. Tenants would need to ask for the DEWA registration number/premise number to register the DEWA utility in their name. All the above would need to be requested through the real estate agent, who can verify the title deed and guide you through the process.
