Leasing Property in Dubai: Understanding Rent Rates, Ejari System, and Eviction Notices

Dubai's property market is continuously expanding, making it a popular choice for expats. For those unable to purchase property, leasing remains a viable option.

Understanding the emirate's rental laws and processes is essential for landlords and tenants, with the Ejari system by RERA as a critical resource.

Understanding Ejari and the Law

Ejari, administered by the Real Estate Regulatory Agency (RERA), is a mandatory registration system for all rental agreements in Dubai.

It ensures that both landlords and tenants adhere to the 'Law Regulating Relationship between Landlords and Tenants in the Emirate of Dubai' (Law No. 26 of 2007).

This law encompasses all aspects of rental contracts, excluding hotel accommodations and company-provided employee housing.

Required Documents for Leasing

Before securing a lease, tenants must gather and keep the following documents up to date:

* Passport copy

* Residence visa copy

* Emirates ID copy

* Cheque for 5 per cent of the total annual rent

To Finalise a Tenancy Contract, the Following Additional Documents are Required:

* Proof of paying the security deposit

* Specified rental contract term

Registering with Ejari requires:

* Original contract document

* Emirates ID copy

* Proof of security deposit payment and cheques

* Passport copies of both landlord and tenant

* Landlord’s ownership certificate

* Residence visa copy

* Unit’s DEWA number

For DEWA (Dubai Electricity and Water Authority) Registration, Tenants Need:

* DEWA premises number

* Ejari number

* Passport copies of landlord and tenant

* DEWA form

* Security deposit payment

Key Considerations

* Ensure the real estate agent is RERA registered via the DubaiRest app.

* Only hand over payments upon receiving a detailed receipt.

* Know that agency commission is typically 5 Per cent + VAT, and security deposits are 5 per cent for unfurnished units and 10 per cent for furnished ones.

* Request a handover report and take photos to document the unit’s condition at the time of handover.

Rent Rates and Payments

Tenants can pay rent in one or multiple installments. Agents may charge up to 5 per cent commission of the total rent. According to RERA, landlords can increase rent by 5 per cent if the current rate is 11-20 per cent below the average market rate and may also increase it upon lease renewal.

Tenants must pay rent by the agreed date, or in four advance annual installments if no specific date is set. Additionally, housing fees amounting to 5 per cent of the annual rent are paid to the Dubai Municipality and included in monthly utility bills.

Eviction Guidelines

* Landlords may evict tenants for several reasons, including:

* Failure to pay rent within 30 days of the notice period.

* Misuse of the property.

* Required property renovations (with Dubai Municipality approval).

* Illegal activities or property damage.

Disputes between landlords and tenants are resolved through the Rental Dispute Centre at the Dubai Land Department.