Renting is Dubai is very straight forward. Any RERA registered agent can find the required Property on behalf of the prospective tenant, once the price and terms of tenancy are agreed, a standard rental contract, produced by RERA, is signed and the tenancy begins on the date specified in the contract. The contract will also specify the duration of the tenancy as well as the payment terms, usually between 1 and 4 cheques per year although this norm is changing in favour of more payments, up to a maximum of 12, one per month. For this service, the agency fee is set by RERA at 5% of the yearly contract amount or if a contract is entered into for longer than one year, the agency fee is 5% of the total rent amount for the duration of the tenancy. This amount is due on the start date of tenancy. Once the lease agreement has been signed, it must be registered with the RERA so that they will be able to follow up any disputes in the future. The laws for renting are changing quite a bit at the moment as the laws favour tenants and give them more rights to the property than the landlords. As it stands, the landlord can only legally remove a tenant from the property, with 90 days’ notice, if he or she intends on occupying the property themselves for a minimum of 1 year.
- Original Passport and copies for all owners listed on the Sales and Purchase Agreement from the developer and the Title Deed.
- Copy of the Title Deed or Sales & Purchase Agreement if no Title Deed has been obtained. Please note that if the property is completed you will need to get the Title Deed for the property so that the tenant can register their contract with Ejari.
- Floor plans, affection plans etc for the property
- All documents pertaining to the Company if the property has been purchased in the name of a company.
- Liaise with the agent to give them the full details of the property
- Fill out and sign all relevant documentation in order for the listing to be properly prepared
- Agree on a marketing strategy appropriate for the property
- Make the property available for viewings so that prospective tenants can see the property.
- When a prospective tenant makes an offer then you will be required to either approve or give a counter offer
- Once an offer has provisionally been agreed, the agent will take a 5% deposit from the tenant in order to reserve the property. Once this deposit has been received by the agent then the property should not be offered to any other tenants.
- The agency will provide the draft Tenancy Contract to be checked by the tenant and the landlord
- Tenancy Contract will be signed by the tenant first and the rental cheque(s) and the Agency Fee will be paid to the agent
- Final bills for utilities will be provided by the landlord to the tenant
- The rental cheque(s) will be handed over to the landlord and they will sign the contract
- The tenant will go to the DEWA, Dubai Water & Electricity Authority, offices to switch on the water and electricity.
- A snagging list will be done for the property by the agent in cooperation with the tenant to ensure that the property is handed over in good condition.
- The property will be handed over to the tenant on the start date of the tenancy contract.
- The Tenancy contract needs to be registered with RERA after which you will receive a Ejari certificate.
- Upon contract termination and vacation of the property, the security deposit will be refunded to the tenant after property inspection by the landlord.
- Agency Fees: 5% of rent amount
- Ejari Registration: AED 270
- DEWA: Deposit + connection AED 2,000
This post first appeared on Dubai Real Estate Blog | Kendal & Co Real Estate D, please read the originial post: here