Do you know 85% of Dubai’s population lives in Rental properties? Finding the perfect rental property can be difficult, especially in the real estate market of Dubai. However, with little guidance, you can easily do that. There are many important things that you must consider before renting a property in Dubai. This guide is a perfect choice for you if you are looking for a new property to rent. Below, we have covered everything you need to know from the documents needed to the process of finalizing the property.
How to Rent a Property in Dubai?
Start with surfing on internet and choosing the best properties for you. There are many best real estate websites where you can check the listing of properties easily.
- Defining your budget.
- Hire a real estate agent and finalize the viewing of the property with them.
- When finalized, gather all the required documents
- The next thing to do is to get ready with the rental agreement and sign up for the tenancy agreement.
- You will also need to go through Ejari. It is a quick and easy process that you need to complete to register your tenancy contract. After signing the agreement, you need to go to the Ejari centre, where you will have to pay a minimum fee.
- When done, get ready to move in.
How to Set a Budget to Spend on Renting?
Just remember, you will first need to give a security deposit that is generally 5% of the annual rent for most of the unfurnished properties. It may increase to 10% if the home is fully furnished. However, it depends upon the agency itself. This deposit is returned back to you at the end of the tenancy. If you have hired an agency, you may have to pay them 5% of the rental value.
What Documents are Needed When Renting the Property?
Renting of the property in Dubai is mostly done for long-term properties. Below are some of the documents that you need to get if you are interested in getting the property for rent in Dubai:
- Passport
- Residency visa to get DEWA (Dubai Electricity and Water Authority)
- However, if you are not a UAE resident or you want a more flexible lease, you can choose a short-term rental or holiday home.
How to Finalize the Property You Want to Rent?
As mentioned earlier, there are a lot of websites where you can search for the type of property you want to rent. At present, there are more than 200 residential communities that you can check on. Therefore, you must make sure to get the property in the best areas of Dubai. Make sure to check whether there is high connectivity or not. It is very important to have access to everything around the property you want to rent.
It is also important to decide what type of property you want to rent. The type of property will be based on your budget and the amenities you need. You can choose between different things like apartments, villas, penthouses, and townhouses. If you are still confused while deciding which one to choose, you can always take the help of a real estate agent.
Finalizing the Rental Agreement
When the property is finalized, make an offer to them. This will include negotiating with the landlord, like rental price, contract start date, and deposit amount. Remember, you will need to pay 5% of the rental price. Discuss every important detail before signing up for the other agreements. Remember to get the receipts of each payment made by you for your records. Also, ask your agent about the number of post-dated cheques you need to cover the rental price.
Signing the Tenancy Agreement
When the documents are verified, you will get a tenancy agreement for your signature. This document will include all the related details, including the rent and other terms and conditions. Make sure to have a thorough review and then proceed with the signing agreement.
You will also need to give the rental cheques and the required commission to the agent. Get the invoice and the receipts of the transactions for your records. This will help to maintain the transparency between both of you. The agent will get the signature from the landlord on the tenancy agreement. When everything is done, you will probably receive a copy of the signed agreement for your reference and records.
What Type of Renting Must You Choose?
There are generally two types of renting you can take care of:
- Short Term
- Long Term
If you are a UAE resident and are looking for a place to stay for a long time, like for a year, the best thing to do is to take long-term rental services, i.e, for 12 months. You can get options for both furnished and non-furnished apartments.
On the other hand, if you are not a resident and just want to live in the UAE for some months or weeks, going for short-term renting is beneficial for you. This type of renting is usually for people who come to the UAE either for a business meeting or just for a vacation.
What are the Costs Involved in Tenancy
Below are some of the costs that are involved in the Tenancy:
- Agency Fee: 5% of the total tenancy fee
- Security Deposit Fee: 5% – 10% of the total tenancy fee
- DEWA Fee: AED 2,000 for apartments and AED 4,000 for villas with activation fee of AED 130 + 5% VAT
- Ejari: AED 215 + 5% VAT.
Conclusion
Renting the property in Dubai is easy if you know the process and other important details. Set up a budget and get all the important documents needed. Hire a good real estate agent who will help you finalize the tenancy with the landlord. You will need to get the rental agreement and tenancy agreement. Don’t forget to ask for a copy of each of the documents or the cheque you pay.
