Rent Procedure in Dubai

The rental procedure in Dubai is extremely systematic and convenient. All thanks to RERA since it has started to standardize and regulate the relationship between the landlords and tenants. However, only an inhabitant of Dubai can sign the lease agreement and connect the utility services. Also, the tenancy must be administrated with a written tenancy contract agreement with the pertinent information, along with registration with the RERA. The Law that was enacted after 2007 describes and classifies the scope of implementation together with articles relating to:

1. Responsibility of the landlord
2. Responsibility of the tenant
3. Expatriation
4. General rules

• It must be noted that from January 1st, 2008 the rental cap has been fixed at 5%. That is to say the landlords cannot raise the rent higher than 5% of the existing rental agreement for a period of 2 years.
  
• Rent in advance for tenancy agreements in Dubai is quarterly paid in advance; or as otherwise settled on the lease agreement.
  
• All the new hiring’s must be registered with the Real Estate Regulatory Agency (RERA).
  
• If a broker or agent is involved they must hold the broker’s register registration ID card and 5% of the annual rent amount must be given to him. This is the service fee to the agent and is payable upon signing a rental contract agreement.
  
• The office of the agent must be licensed so as to perform the real estate renting to landlords and tenants by the Department of Economic Development. This is an exceptional activity permit and is distinguished from sales license in order to put forward the rental and management service.

As a tenant you should first talk to different agents, meet them, discuss your wants and needs, and then accordingly make up your mind as to which one suits best.

Tenancy Law in Dubai

The tenant laws in Dubai are strict and one must adhere to all of them. Given below are some of the vital steps and documents that are required if you plan to move in to Dubai.

Documents:

• A copy of your passport
• A copy of your residency UAE visa which will help you to sign a lease
• A report of income from your employer so as to show how much you can afford as well as a proof of your employment
• A signed claim for tenancy with all the necessary information provided
• As a rule you need to have a security deposit equivalent to 4 weeks of rent. This deposit will be refunded to you when you leave the place. However, the tenancy law states that you need to give the property back to the owner in the same condition as when you had taken it.
• The security deposit should be filed with RERA (Real Estate Regulatory Association) along with the lease when signed.
• Make sure to ask for a copy of the 'title deed' or 'proof of ownership'

Given below are some of the basic yet extremely essential steps that need to be in kept in mind before signing up as a tenant.

Question:- Is there any UAE law that has reference to the fees that real estate agents can charge the tenants?

Answer:- ‘The rule is to charge up to five percent of the annual rental value, or 5,000 AED, whichever is higher. As such there are no set laws for fees; however, it is common for agents to charge both the landlord as well as the tenant.

Question:- What licenses does one need to have to become a real estate agent, what should I check for?

Answer:- Each agent has to be a RERA qualified so as to officially deal with real estate properties. This can be done only when a person passes an exam and has been checked and verified by the police. Keep in mind these pointers and you will never go wrong.