Freehold Property Ownership Laws

Renting Procedures in Dubai

Steps to finding an apartment

Step 1. Search apartment listings in websites such as KT buzzon, getthat.com, dubizzle, propertyfinder.ae, JustProperty.com, bayut. You can limit the listings based on your needs such as number of rooms, areas, furnished/unfurnished, etc. The advertiser usually states the following clearly:

– Rental Amount

– Number of cheques over a rental year

– Security deposit (usually 5% of the rental amount)

– Furnished or unfurnished

– When can the unit be viewed

– Desired starting date

– Any other conditions

Step 2. Shortlist a few apartments that meet your requirement and call up the contact person mentioned in the listing, who will either be the agent or landlord. It’s advisable to formulate a plan and narrow down your preferred locations three months in advance. Usually the landlord/agent is more likely to be interested in you if you’re ready to move in within a month’s time.

Step 3. View the unit:

This is the obvious next step. Make sure you take note of the minute details when you visit (take photographs if required.)

A few points to keep in mind:

– Access to and from the metro station or bus stop, in case you don’t drive

– Security

– Proximity to your workplace

– Noise in the area

– If possible interact with the neighbours to know if they face any challenges

– Facilities such as gym or swimming pool

– Parking facilities

Step 4. Making an offer

In case you decide to take the unit, you may want to negotiate on the rental amount. The most common way to go about this is to bargain on the number of cheques. Sometimes the landlord agrees to reduce the total rental amount if the number of cheques is reduced.

Don’t forget to clarify other specifics such as when the contract will start, its duration, and deposit amount.

Step 5. Reserve the property

If you want the landlord/agent to secure that unit for you, you will be asked to pay a refundable security deposit. It’s usually 5% of the rental amount.

The cash or cheque is made payable to the landlord but is held by the agent until the deal has been finalised. Make sure that you are given a receipt for the deposit. If you later choose to back out from the deal, the agent will rightfully hand over the cheque to the landlord.

At this point, you also need to provide the following to the agent:

– Your Passport

– Residence visa copy (or an original letter from your sponsor/company stating that your visa is under process)

Step 6. Drafting the contract

The agent will then send the Tenancy Contract which will include all the information regarding the rental (including any special conditions agreed by both parties). Go through it thoroughly and suggest changes if necessary. For instance if you want the property to be repainted, make sure it’s clearly stated.

The contract must comply with the tenancy laws in Dubai.

Step 6. Drafting the contract

The contract must comply with the tenancy laws in Dubai.

Step 8. Connecting DEWA

The tenant will need to submit the following documents to DEWA (Dubai Electricity & Water Authority):

– DEWA number (found on the side on the property’s entrance)

– Copy of the tenant’s and landlord’s passport

– DEWA form

– Title deed (for freehold property or SPA if it has been bought from a reputable developer) or affection plan

– Dh2,000 (for apartments) or Dh4,000 (for villas) as a refundable deposit, and Dh110 for setup charges
Supply is activated within 24 hours of registration and payment of security deposit.

Online Procedure

1. Online Application Submission Fill-in the online application form with required information.

2. Mandatory required attachments are : Tenancy Agreement Passport with Valid Visa Page/Trade License. You will be required to pay Security Deposit online using ePay.

(Info from DEWA website)

Step 9. Ejari Registration

The following documents are required:

– Original tenancy contract

– Original receipt of DEWA connection in the tenant’s name

– Title deed (for freehold property or SPA if it has been bought from a reputable developer) or affection plan

– Copy of the tenant’s and landlord’s passport

– Copy of Emirates ID

Step 10. Move-in form

Some developers need the tenants to submit an NOC before they can move into the property. The following documents are required:

– EJARI Certificate

– Passport and visa copy of the tenant

– Copy of the Tenancy Contract

– Move-in form

For instance, the security in the building could be such that they don’t allow tenants to move in on Fridays. The tenant must raise these questions with the landlord before hand.

NOTE: The rents can have a fixed contract, which is usually one year, or no contract. In case the contract is for less than a year, it falls under short-term rental. The laws are governed by Dubai Tourism board.

Watch out for these 6 hidden costs

1. Agency fees: Usually 2 to 5% of the first annual rent

2. Ejari fees: Dh195 for all types of properties

3. Housing fee: 5% of annual rents added to DEWA bills

4. Security deposit: Usually one month’s rent, refundable

5. DEWA deposit:

Apartment
Dh2,000 (deposit – refund on leaving)
Dh110 (connection, non refundable)

Villa
Dh4,000 (deposit – refund on leaving)
Dh110 (connection, non refundable)
6. Chiller deposit/ gas deposit: Varies according to the provider