All You Need To Know Before Letting Your Property In Dubai

Know the rules!!

If you plan on renting in or renting real estate in Dubai, make sure you are well aware of all the rental rules. Then make sure you understand them. The laws for renting are not the same in Dubai as they are in the west.

Some of the laws have been revised in subsequent years, so make a note of the year of the law and look for any recent revisions to them. It can get complicated renting in Dubai as the rules can change. When in doubt, contact RERA for up-to-date information.

Can The Landlord Increase Rent In Dubai After 1 Year?

The simplest answer is ‘no, they can’t’. There are some strict rules when it comes to raising the rents, and one is Decree No (43) of 2013. If your landlord does raise your rent on a whim, then you can file a case with the Rent Committee based on Decree No (26) of 2013.

If you are subject to a rent increase, then that increase must follow the Rent Index set by RERA. One good point in this index is if your rent is within 10% of the average rental value of similar units, then your landlord cannot raise your rent.

New Rental Law In Dubai

The most recent law affecting rentals is one created in 2021 that seems to freeze rents for 3 years from the date of the rental contract. But that is just one part of the law. The second part is in favour of the landlord.

The landlord can resort to an Execution Judge for unpaid rent, which shortens the process for landlords so they can collect unpaid rent faster. This new law should be published by now, but if not, then the old law found in Dubai Decree No. 43 of 2013 will apply.

No Rent Increase For 2 Years In Dubai##

This may be the law unless the new 3-year freeze law is published and takes effect. The current law reads- “Article 9 of the Dubai Law No. 26 of 2007 Regulating Relationship Between Landlords and Tenants in the Emirate of Dubai,

“Landlord and tenant must specify rent value in the tenancy contract, and should not increase such rent value or amend any of the tenancy contract conditions till the elapse of two years from the date of inception of original tenancy relationship.”

There is no word right now if the new law has been implemented yet.

Can I Rent Two Apartments At Once In Dubai?

We have checked the rules, and there does not seem to be any restriction on renting two apartments at the same time. That is, as long as you have the money to meet your rental obligations.

There is a rule restricting the rental of the same property to two different people. To monitor that situation, all rental agreements must be registered with EJARI. When you file the agreement, make sure to include deposits, etc. And then, make sure to have a receipt for the deposit as well as a copy of the landlord’s passport page.

Rent Your Property In Dubai

This is not a problem as long as you follow all the rental rules. You may need to contact RERA to learn all of the rules involved in renting your Dubai property. One of those rules is that you may have to give at least 1 year’s notice to any tenants to evict them.

Then you will need to register the rental transaction with EJARI so the apartment or home cannot be simultaneously rented a second time. Then if the agreement has expired and the tenant remains in the property without objection from you, the agreement is automatically extended up to one year under the same terms, etc.

How Can The Landlord Increase The Rent After The First Year?

The only way the landlord can raise the rent is if the following conditions are met:

If your rent is up to 10% less than the average rental value of similar units, your landlord cannot increase your rent.

If your rent is 11-20% less than the average rent of similar properties in the area, the landlord is legally entitled to a rent increase of 5%.

Your landlord can hike your rent by 10% if your current rate is 20-30% lower than the going value.

A 15% increase can be made if your rent falls short by 30-40% of the average rent.

Your rent can be increased by 20% if your rent is more than 40% less than the average rental value of similar units.

And then only after 2 or 3 years, depending on which law is in effect.

Requirements For Renting A Flat In Dubai

The best way to get the requirements for renting a flat in Dubai is to contact RERA. They are the regulatory arm of the Dubai Land Department, and they have set the rules for renting in the city.

Those rules do change from time to time, and it is best to contact that organization to get the most recent changes.

Best Time To Rent In Dubai

The best time to rent is when there is a glut of apartments, flats, and villas on the market. At those times, landlords are desperate to get tenants, and rental fees will be lower than at other times.

Right now, the rental market is on the upswing, and rentals are in high demand. That means it is a landlord’s market, and they can charge more than prior to 2020.

Some Final Words

Trying to find an affordable rental in Dubai can take some work. You will need to know your budget and then start looking for affordable places. To get all the help you need navigating this complicated market, give our office a call.

Our agency and agents have over 10 years of experience in working with landlords and tenants in Dubai. We can help you get the best rental deal as well as inform you of all the rules and laws that concern your tenancy agreement.

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