Renting in Dubai – the information you need to know
Many people living in Dubai rent their home and while we have seen an increase in people buying property in the UAE, renters still outnumber owner-occupiers.
This article is an overview of Dubai rental law and applies to all residential property in Dubai, no matter who owns it.
The body that oversees the legislation is the real Estate Regulatory Agency (RERA) part of Dubai Land Department. This is a summary of the main points of the law.
- Most contracts are for a period of one year and unless a notice period is stated in the contract a tenant is not entitled to a refund if they want to leave earlier.
- Non-renewal clauses added by landlords are invalid and unenforceable, so if a landlord does not make contact by 90 days before renewal a contract will renew on the exact same terms. If a tenant wishes to leave, they must also provide the landlord with notice per the contract terms, usually 90 days prior to the contact end date.
- If the landlord wants to increase the rent, which can only happen at renewal, they must provide 90 days’ notice and the increase can only be in accordance with the Real Estate Regulatory Agency (RERA) calculator. If proper notice is not provided then the rent cannot be increased, no matter what the calculator says.
- A landlord can evict a tenant for specific reasons only and NOT because they want to re-let the property at a higher rent. Permitted reasons are that the property is to be sold; an immediate family member is to take up residence but only if another property is not available; if the owner wishes to demolish the property; and if the property requires renovation or comprehensive maintenance which cannot be carried out while the tenant is occupying the property. Of course, non-payment of rent is a reason for eviction, as is unauthorised subletting.
- If a landlord intends to evict for one of these legally acceptable reasons, then the tenant must be given 12 months’ notice. This must be delivered in writing by Public Notary or registered post to be binding.
- If the landlord has claimed the property is required for their family and they do not move in, the evicted tenant may apply for compensation. The landlord is also not permitted to rent out the property for two years in this situation.
- RERA provides advice and guidance but complaints should be made to the Rental Committee, part of Dubai’s Land Department. The fee is 3.5% of the annual rent, payable upfront, and if you win, the landlord should pay this as well as any compensation.
- The landlord is responsible for the maintenance of a property and reasonable amount of wear and tear is permitted as stated in the rental laws. A tenant should make a good all and any damage. Tenants are not obliged to repaint a property on vacating unless they have signed a contract that states they will do so. This is an extra clause added by some landlords and is not part of the law.
- All rental contracts should now be registered under the Ejari system and you will need a registered contract to be protected under the law and if you need to make a complaint against your landlord.
Despite the rules about the limits to rent increases, there have been cases where a property owner has obtained specific approval from the court to increase to a level above the calculator. They have to show that the rent is well under the average and it is not a common occurrence.
Some other points to consider:
As mentioned above, tenants are not obliged to repaint but it is always best to request an additional clause in a contract to protect yourself. Ask that it is confirmed in writing that you are not obliged to repaint the property when handing it back. The exception here is if you have redecorated in a different colour.
While landlords are responsible for maintenance, it is standard for tenants to deal with minor issues. Often a contract will state a limit, usually AED 500 or AED 1,000 above which the landlord must bear the cost. Agree how problems will be handled at outset to make life easier all round.
If you have pets, get written confirmation that they are permitted. Again, this is to protect yourself.
The owner or agent has no right to enter a tenanted property. If you are leaving, they can ask if you will permit viewings and while you don’t have to, it can be smart to be amenable and allow some viewings by prior agreement.
It is usual for the tenant to pay the estate agent with the normal fee being 5% of the annual rent. This can be higher for cheaper properties and lower for more expensive ones.
Tips for Tenants
Unless you are renting from a very well-known company, obtain proof of ownership of the property. The landlord should provide a passport and EID copy as well as a copy of the title deed, or local proof of ownership. If in any doubt, go to the Land Department on Baniyas Road in Deira to get confirmation. They are super helpful and will give you peace of mind.
If you are asked for cash, or told the agent takes the rent on behalf of the landlord, then walk away. In fact, run away.
Make sure you are dealing with a properly registered and authorised estate agent. Sadly, there are way too many shady firms operating in this field. The individual agent should be listed on the Dubai REST app and don’t trust anyone who claims they are waiting to renew their annual licence as there is a delay in taking exams. That’s a common scam. Not all agents are authorised to deal with rental properties so again, if in any doubt at all, check with the Dubai Land Department.
When you move in, take photos of any damage, any cracks, chips to cupboards and so forth. That way you can demonstrate that such damage has not been caused by you.
If you have a garden, take a few shots of that too.
Find out the exact brand and shade of paint that the property has been painted in. It is likely to be by Jotun but they have lots of off-white shades and you want a perfect match. Then buy a tin and use it for touch-ups to keep the place looking good.
Get all workmen to wash their hands when they come in to avoid dirty fingerprints on your white or cream walls. Voice of experience here.
Owners and landlords
It has been standard to ask a tenant to pay annually or six-monthly upfront to protect yourself. If you want to offer more frequent payments, or indeed in any situation, you can ask a tenant to provide a copy of an Al Etihad Credit Bureau enquiry to show that they have a good financial record.
You can make your life easier, by agreeing how any maintenance or other problems will be dealt with before they arise.
Having a good relationship between landlord and tenant benefits everyone. The tenant is happy and looks after a property. The landlord’s investment is taken care of.
The law is clear and protects all interests in a fair manner.
© British Expats Dubai August 2024