What Are My Rights as a Tenant in Dubai in 2023?

Current Situation and Rental Price Increases

The growth of urban centres has led to increased demand for housing, resulting in an upward trend in rental prices. The rental market in Dubai has seen a substantial rise in recent years, with apartment rents rising by 24.1% and villa rents by 24.8%. 

The Real Estate Regulatory Authority (RERA) has instituted regulations governing Dubai's property market to address the evolving dynamics, including Articles 26 of 2007, No. 33 of 2008, and No. 2 of 2011, specifying the roles and responsibilities of tenants and landlords and ensuring a balanced relationship between the two parties.

Frequently Asked Questions by the Tenants:

What is the mode of payment?

• Cheques 

One standard method of paying rent in Dubai is through post-dated cheques spread out over the rental period. This approach offers a straightforward way to manage financial obligations. The exact number of cheques can vary, ranging from one to six, with landlords typically preferring fewer cheques. This payment method can provide tenants with a more manageable payment plan while giving landlords a sense of financial security throughout the rental period.

• Online Banking 

Dubai Land Department is exploring the possibility of using online banking as an alternative to cheques. This proposal could offer more convenient and secure options for renters to pay their rent.

What are the steps involved in renewing a lease and negotiating?

When your tenancy contract expires, there are some steps you should initiate. Firstly, talk with your landlord at least 90 days before the deadline to give enough time for discussions. To be able to determine whether the suggested rental increase falls within the allowable boundaries set by Dubai Land Department (DLD), it is recommended that you conduct in-depth research on the current rental rates prevailing in your area. During the negotiation process, you must maintain open and transparent communication with your landlord, putting forward a well-reasoned argument and striving to reach a mutually beneficial agreement.

Why should I pay security deposits and maintenance fees? 

A security deposit is a standard part of rental agreements in Dubai. Landlords can require this deposit at the lease's start, which protects against potential damages. The security deposit usually amounts to 5% of the annual rent for unfurnished properties and 10% for furnished residences. This deposit is refundable, provided the property is returned to the landlord in perfect condition after the tenancy.

However, regarding maintenance issues, landlords are responsible for handling repairs. Be sure to review your tenancy contract for any limitations on coverage carefully. For instance, landlords cover major repairs if it exceeds AED 1,000, and the tenant is responsible for paying for maintenance below AED 1,000. 

What happens if the landlord sends an eviction and a rent increase notice?

Regarding the regulations for eviction, it is essential to note that landlords are permitted to evict tenants after the end of the agreed-upon tenancy period. Suppose a landlord wishes to terminate the tenancy agreement. In that case, they must provide written notice within a 12-month, which must be sent via registered mail or through a notary public. This extended notice period allows tenants to make any necessary arrangements for relocation.

Regarding rent increases, landlords can only adjust during the tenancy renewal period. Furthermore, they must provide tenants with a written notice period of 90 days before the renewal. Rent adjustments must align with the Dubai Land Department's Rental Index to ensure reasonable and fair increases. This comprehensive system provides a clear, objective framework for determining appropriate rent increases.

Can I terminate my contract before it expires? 

Tenants who wish to end their lease early may face a penalty of two months' rent. Some contracts allow for early termination based on individual lease terms, which may not have any penalty—before signing the lease contract, negotiating with agents to have these options on the contract. 

What should I do if I want to move out of the property?

Settle all outstanding bills, including DEWA bills, cleaning costs, cooling charges, internet fees, and repair fees. Disconnect all utilities and notify DEWA to get back your utility deposit. Do a thorough inspection to ensure the property is in good shape and you're not liable for any repairs. If you've lived in a furnished property, check for any damage and fix it.

Tidy up before leaving to avoid extra cleaning charges, and have your removal company arrange for the cleaning and garden tidying. Take all your belongings with you on move-out day, as landlords are not obligated to store your things.

Tips on how to navigate the rental process

Discovering your ideal rental home is easy with a clear set of steps. Don't worry, homely bliss is achievable with Engel & Völkers Dubai.

1. Start by defining your preferences. You can check out some of our Exclusive listings in Dubai's sought-after communities. 

2. Know your financial limits.

3. Ensure to gather essential documents such as a copy of your Emirates ID or passport, proof of income (payslip or employment contract), and a UAE bank account. 

4. When signing a lease agreement, it is essential to carefully review the terms and conditions, including rent, payment dates, deposit information, maintenance responsibilities, and additional charges, to ensure your legal protection. 

5. When conducting an incoming property inspection, it is essential to do a joint inspection with the landlord, record any defects, and document with photographic evidence.

For more information or to explore properties for rent, contact Engel & Völkers today!