What’s the best way to earn a lot of money in the real estate industry? It is by putting up the property for rent. Dubai is the main centre of real estate investments, giving a lot of advantages to you as a landlord. There are laws designed especially for you. It not only helps you to get high rents but also provides a tax-free environment. However, with a little guidance on how to rent out your property in Dubai, it will be easy for you to understand the process. Go through the guide to get all the steps and other important things to be considered.
How to Rent Out Your Property in Dubai?
If you want to rent out your property, you will need to follow the instructions mentioned below:
- The first thing you will need to do is to prepare for the property you want to rent.
- Select the best real estate company to list your property. Having a good agent makes it easy to get tenants for your property.
- Understand how the listing process is done.
- Get a proper shoot for your property. Remember, first impression is the last impression. Thus, try to get professional photographers or videographers to get the best pictures and videos for the people looking to rent the apartment.
- When your property is listed on their website and other social media platforms, they will start getting requests to view your property. You will have to arrange the property viewing with the other person based on your free time.
- Once done, you will get a lot of offers. Review all of them and choose the one that is best suited to you.
- When everything is done and you agree with all the terms and conditions, sign up for the tenancy contract.
- Ensure the utility connection so that your tenant does not have to go through major problems.
Although all the steps are clearly mentioned, one of the main thing that you need to perform before hiring the agent is to choose which type of renting service you want.
What to Choose – Short Term or Long Term?
Honestly, it depends upon a few factors like your personal choices, location of the property, time involved, etc. The basic difference between both of them is that you get a high return on long-term renting service and lower returns on short-term. The agent can guide you on what will best suit you. If you live in expensive areas, try to go for long-term renting.
Also, read How to Sell a Property in Dubai? (Seller’s Guide)
Understanding the Listing Process
The listing process of the property to rent is a simple and easy process. You will need to obtain the listing permit. Every property that is put up for rent needs to get a permit. It helps to rent your property to be advertised by a RERA-registered real estate company. To get it, you must submit some documents to the Dubai Land Department (DLD):
- Title deed
- Passport copy
- Emirates ID/Residence Visa copy
- DEWA account details
- Bank statement
- Copy of the mortgage document (if the property is mortgaged)
- Signed listing agreement
Your agent will help you in completing the listing process.
How to Hire a Real Estate Agent?
Hiring a real estate agent is one of the crucial steps in renting the property. You will need to see whether they are experienced in the type of renting you want or not. Also, some other factors that you should look at while hiring the agent are whether they are experts in the location of your property, whether there is a strong social media presence, what are there charges are, etc.
What are Legal Landlord Rights in Dubai?
As a landlord in Dubai, you must know your rights and responsibilities to make the renting process easier. Below, we have mentioned the rights and your responsibilities in the process of putting the property up for rent:
Eviction Rights:
You can send the eviction notice to the tenant for the following reasons:
- Non-payment
- Personal use
- Major property changes
However, remember these actions need to follow the specific legal process. It is done under the Rental Dispute Settlement Centre (RDC).
Notice for Rent Increases:
If you are interested in increasing the rent of the Tenants, you will need to send the notification at least 90 days prior to contract renewal. The increase in rent will be regulated with the help of RERA and the Dubai Rental Index.
Also, read How to Buy a Property in Dubai? (Step by Step Buyer’s Guide)
Maintenance Obligations:
The maintenance of the property is your responsibility. However, you can ask the tenants for minor repairs. Just have clear communication with them to avoid future disputes.
Ensuring Utility Connections
Get proper gas, water, and electricity utilities for your tenant. It will happen as soon as the contract is registered with Ejari. Once done, DEWA will create the tenant’s account and email all the details. If you want to activate the DEWA account, the following documents will be required:
- DEWA number
- Passport copies (of both the tenant and the landlord)
- DEWA form
- Title deed
- Activation fee of AED 130
- A refundable security deposit
Factors to Consider while Signing the Tenancy Contract
When the listing process is done, you will need to sign the tenancy contract. For this, you will consider two different factors:
RERA Unified Contract
The agent you have hired will provide you with the RERA Unified Tenancy Contract. It will also give you a standardized lease addendum that will discuss all the rights and responsibilities of both parties.
Registering with Ejari
When the tenancy contract is signed, you need to register with Ejari. While registering for Ejari, you will have to give some documents and pay the fee either online or at their official center.
Also, read List of All Documents Required to Buy Property in Dubai
Conclusion
Renting the property in Dubai gives you high ROI. You will have to start by preparing for your property and choosing the right agent. Understand the legal requirements and ask your agent to list your property on their official website and other social media platforms. The amount that you will take as rent depends on what type of renting you want to focus on. If you have selected long-term renting, you will get more income than the short-term renting.
