Terminology
EJARI: It is an online registration tool introduced by the RERA. Each individual tenancy contract has to be registered with EJARI.
Tenancy Contract: It is readily available on EJARI’s website with basic terms. You can fill in the landlord’s and tenant’s details along with any additional terms you want to add.
RERA: The Real Estate Regulation Authority is the regulating arm of the DLD.
DEWA: Dubai Electricity and Water Authority is responsible for the supply of electricity and water in Dubai. The tenant needs to register their EJARI with DEWA to activate the supply.
RDC: Rental Dispute Centre is a branch of DLD that handles all the rental disputes in Dubai.
No. of cheques: This denotes the number of instalments the tenant is allowed for paying the annual rent.
Security Deposit: An amount collected by the landlord as a security against any damage done to the property by the tenant. The industry standard is 5% and 10% of annual rent for unfurnished and furnished properties respectively.
Tenancy Laws
Registration & Increment
1. Only work with RERA registered brokers. Ask your broker for his/her broker ID. You can verify the same on Dubai Brokers App.
2. It is compulsory to register Tenancy Contract with EJARI. EJARI certificate will be acceptable at every government agency as a proof of address. The certificate is also needed in case of any dispute.
3. The landlord cannot increase the rent randomly. An increment in rent can only be done in accordance with Rent Index set by RERA.
The rental index can be accessed on:
https://www.dubailand.gov.ae/English/Pages/rental-increase-calculator.aspx
4. The rent can only be increased according to the following slabs based on the difference between the rent paid and the rent index:
- No increment in rent can be made if the rent is paid up to 10% less than the index
- In case the rent paid is 11-20% less, the landlord can increase up to 5%
- If it falls short by 21-30%, a 10% hike is allowed
- 15% increase is allowed in case the difference is between 31 to 40%
- If the difference is more than 40% the rent can be increased up to 20%
5. The landlord has to give a 90-day notice in case they want to increase the rent.
Eviction
Renewal of tenancy contract is given to every tenant by law in Dubai. However…
- In case of a default by the tenant like non payment of rent, subletting without consent, illegal or immoral use of property, etc. the landlord can evict the tenant by giving a 30-day notice.
- The landlord can request eviction with a 12-month notice for the following reasons:
1. If the landlord wants to sell the property,
2. If the landlord or their immediate kin wants to move.
In this case, the landlord can’t lease the property for 2 years.
All of the notices should be served by Notary Public or Registered Post.
Steps to Renting
Viewing Stage:
1. Find a registered broker.
2. List your property with the broker and mention all the terms like expected rent, security deposit, specifics of the property, viewing arrangements, etc.
4. The broker will then start showing the properties
5. Gradually, the broker will start sharing offers with you
6. If you are satisfied with an offer, you can accept it.
Registration Stage:
1. The tenant will book the property by issuing a cheque for security deposit (industry standard is 5%)
2. The broker will now get a tenancy contract for you and the tenant to sign. Read the terms mentioned in the tenancy contract carefully before signing. You can even mention additional terms you want to include.
3. Once the tenant clears all the dues like part or whole of annual rent as agreed with you, the tenancy contract can be registered with EJARI by the broker or you. EJARI charges are Dh215 for villas and apartments as well. This is payable by the tenant.
Moving-in Stage:
1. Before moving in, the tenant will have to activate DEWA services by submitting the EJARI certificate. DEWA will charge a security deposit of Dh2,000 for apartments and Dh4,000 for villas. Other than this, an admin fee of Dh130 will be charged in both apartments and villas.
2. 24 hours after paying the above-mentioned charges, your DEWA services will be activated.
3. The next step for the tenant is to get any permit required from the developer or the management company. This can take up to 5 working days. You have to help the tenant get these permits.
4. After acquiring all the permits, you can move in the property.
