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Features of rental housing in Dubai, UAE

Features of rental housing in Dubai, UAE - Makebiz

Renting real estate in the United Arab Emirates requires a careful approach and knowledge of local laws. This is due to the peculiarities of legal regulation, which may differ significantly from the usual norms for tenants in other countries. Let’s take a closer look at the key aspects of renting in the UAE, including the rules for rent increases, the conditions for early termination of the contract and dispute resolution mechanisms.

Requirements for tenants

One of the key features of renting in the UAE is the need for the tenant to have an Emirates ID. This document is an identity card that is issued only to those who have the right to stay in the country for a long time. For foreign citizens who do not have an EID, it becomes almost impossible to purchase apartments for a period of more than a few months. Of course, landlords prefer to work with tenants who are able to confirm their legal stay in the country.

If you plan to stay in the country for a short period of time, then renting an apartment for 2-3 months is possible through platforms such as Airbnb or Booking.

In this case, the agreement is moderated by an online platform, which simplifies the process, but also requires a careful approach to choosing an object and checking reviews.

Particular attention should be paid to the purpose of using rented housing. The tenant is obliged to use the apartment or house exclusively for its intended purpose, that is, for living. It is prohibited to rent it to third parties without the written consent of the owner. This condition is often prescribed in the contract, and its violation leads to its early termination.

Another significant point is the prohibition on redevelopment or major changes to the rented space without the prior written consent of the owner. This rule protects the interests of the owner and allows you to preserve the original appearance of the apartment or house. Before making any changes, the tenant must obtain approval from the landlord.

The tenant is responsible for routine minor maintenance. This includes duties such as replacing light bulbs, cleaning air conditioners, and other minor repairs. He is also required to pay for utilities on time, which include electricity, water, gas and the Internet.

The requirements for property owners

It’s usually include the following points:

  • Provision of premises in a habitable condition: ensuring that the apartment or house is ready for occupancy and life.
  • Maintenance: responsible for repairing the roof, facade, and main communications.
  • Respect for the terms of the contract: the landlord has no right to increase the rent without following the established rules and must repay the deposit on time after the end of the lease term.
  • Visiting: The tenant is not allowed to visit the apartment without prior notification.

Features of a long-term lease

The Emirates has adopted the practice of concluding annual lease contracts. A lease agreement is the main legal document that sets out the rights and obligations of the parties. It must be registered in the Ejari system, which is a mandatory requirement. Without this registration, the tenant will not be able to pay utility bills such as water and electricity.

It usually includes the following key points:

— Term: it is usually 12 months.

— Payment: the amount that the tenant is required to pay, as well as the terms of its change.

— Deposit: the amount that is deposited as a guarantee of the fulfillment of the terms of the agreement.

— Rights and obligations of the parties.

— Features of termination of agreements.

Various payment schemes are practiced. Usually, the tenant must pay for the accommodation a year in advance or quarterly, although in some cases a monthly payment is also possible. The use of bank checks is especially common in Dubai. The tenant has the right to write checks in advance for specific dates in the future, but it is important to ensure that the bank account has the necessary amount to cover these checks. Non-payment of a check leads to serious consequences, including fines and problems with renting a home.

When signing a contract, the tenant usually makes a deposit, which is about 10% of the annual rent. It serves as collateral in case of damage or unpaid bills. Therefore, it is very important to carefully record the condition of the apartment at the entrance. It is recommended to draw up an inspection report with photographs in order to avoid misunderstandings during check-out.

When he leaves the apartment, the owner conducts an inspection of the premises. If the condition corresponds to what was recorded at the time of entry, the deposit will be refunded in full. Otherwise, if damage is found, the cost of repairing it will be deducted from the deposit.

Rent Increase Calculator

One of the unique features of renting an apartment in Dubai is the Rental Increase Calculator, a rent increase calculator developed by the Department of Land Management. This tool allows the parties to determine whether the landlord can increase the cost of accommodation and by what amount. 

If the market price of an object has increased, the owner has the right to increase the value, but this is only possible within 5-20%, depending on the market situation. It is worth noting that he is obliged to notify the tenant of the intention to raise the price at least 90 days before the end of the current contract. This rule protects the interests of tenants by allowing them to plan their financial expenses in advance.

Cancellation of the contract and cases of disputes

Situations where the parties want to terminate the contract ahead of schedule are not uncommon. It is important to carefully study the terms of the contract, as penalties are usually provided for early termination. In most cases, they make up the payment for one or two months of stay. 

However, if the termination is due to serious circumstances, such as serious illness or job loss, it is recommended to try to negotiate with the owner. In such cases, it is worth having documentary evidence of your words to justify the need to cancel the contract. They often cooperate, especially if they understand the situation.

Unfortunately, disputes often arise during the process of living. This may relate to poor-quality repairs, unjustified withholding of a deposit, or an illegal increase in the fee for the facility. In such cases, tenants have the right to contact the Rental Dispute Center, a special body that resolves disputes between the parties.

Both residents and foreigners have the right to file a complaint with this center. However, in order to successfully resolve the dispute, it is recommended to seek the help of lawyers who will help you prepare the documents correctly and present the case.

Renting a house in the UAE is a significant process for a comfortable long–term stay in the country. Understanding your rights and obligations, knowledge of the specifics of local legislation and dispute resolution mechanisms will help avoid unpleasant situations and make the process of living more comfortable. It is always worth carefully reading the terms of the contract and, if necessary, consult with a lawyer or an expert in the field of real estate.

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