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.