The latest data of the Dubai Statistical Center has shown that the maximum prices for rental housing in the emirate rose by 6.7% in October 2014, then in 2015 there was a slight decline in pricing. Experts believe that rental prices are also going a bit down in 2016, but no more than a range of 1-2%, which is now observed on the market.
The high cost of housing in Dubai is justified by the fact that the emirate is a key business hub of the region and the demand for apartments and villas as a Dubai investment properties remains stable and high. But, for comparison, prices for accommodation in Dubai is 29 percent lower than in New York and 34 percent lower than in London.
There are some facts that you really need to know by signing rental agreement in Dubai.
Experts from SORP Business Centre providing 10 key issues that may arise in the preparation of the rental contract in Dubai:
- Firstly, you must know your rights. Tenants and lessors should become familiar with, at least, three main laws governing the relationship of lessors and tenants: №33 dated 2008 year , №26 dated 2007 year and the №43 dated 2013 year.
- Brokers or any business real estate agent must have a registration of «Real Estate Regulation Agency» (RERA) (part of the Dubai Land Department). Check out carefully: if broker can’t get confirmation before or during the transaction, you should find another agent.
- Leases should have registration of the Ejari. Don’t rely on a temporary lease agreement («blue sheet») provided by the broker. Registration Ejari confirms rental agreement that gives tenant some legal ways to defend his rights in court if some incidents occur.
- The sum of a usual pledge is to be specified both with a help of Ejari and «blue sheet» tenancy agreement. Generally, its amount is equal to the four weeks rent or monthly rent. This deposit is refunded when a tenant leaves owner’s rooms. Sometimes lessor subtracts a certain amount from the deposit for minor repairs, however, the tenant may take care of repair himself without the help of the lessor and get the full deposit.
- Even if the specified rental period is over, evicting a tenant will not be a simple task. To do so, the owner of real estate in Dubai must provide evidence that he’s intended to carry or sell a property, make major repairs, or some of the close relatives of the owner are to move in. Any reasons must be documented and certified by a notary. The notification of the tenant about the owner’s intention must be sent no later than 12 months before evict.
- You’ll find certain rules of settlement in Dubai. Recommendations state, that no more than three tenants are to live in the studio, five — in a single-bedroom house or apartment, or seven — in the two-bedroom house or apartment.
- Insurance for the house, apartment or householder’s furniture, and other property is a necessary step conducting immediately after filling all the papers and moving in the apartment/villa. If emergency arrives, even if there’s a slight chance of damage to property, the lessor won’t be liable for any damages not specified in his contract.
- When the owner is going to raise the price of your rent, he must check the «RERA» quarterly updated rent index. Rules work this way: if the rental price is -10% from the market price of this apartment, lessor can’t raise the rent in any way. If rent is 11-20% less, he may increase the fee by 5%. 10% increase can happen, if the current value is 20-30% lower, an increase of 15% is possible, if rent happens to be 30-40% below average. Finally, a landlord may increase the fee by 20%, when the price for your rent is -40% from the rental cost of similar units.
- When somebody wants to rent any room in Dubai, a tenant should have a valid visa with residence permits even before he signs the lease. He must provide an appropriate document confirming its receipt, during the procession of such visa . The tenant must also fill out a rental application and provide a passport copy and all the receipts of rent payment. Certificate of wages isn’t required.
- It is necessary to keep records of all transactions and agreements with the lessor in written form. Verbal agreements are not accepted as evidence in court if some incident occurs.
In order to enter a lease agreement in Dubai easily, feel free to ask for professional advice in SORP Business Centre! Experienced specialists will help you to avoid all the possible problems with the document signing or Dubai property investment, and our qualified lawyers will help us to protect your rights in court if necessary. Contact the SORP Business Centre Consulting Department now to resolve all issues with the rental in Dubai!