Landlord – 1 year lease or more
Unlike most Cities, Dubai Agents do not charge Landlords to lease their properties, the Agents’ fee is payable by the tenant unless you wish for the Agent to manage the tenancy then you would be charged between 6-10% of the yearly rental income depending on the Agency.
Once you have the keys to your apartment you have to register with DEWA as the owner (Dubai Electricity and Water Authority), ensure the apartment is in good order and air conditioning units have been cleaned.
Instruct a RERA (Real Estate Regulatory Authority) registered Agent to source a tenant, if the price is right then the process should take no more than 2-3 weeks.
Once a tenant is found the Agent will request cheque payments from the tenant in advance for the year, along with a 5% security deposit which is deposit by you, before the tenancy commences and is to be used at the end of the tenancy for any damages. If the Tenant leaves the property in a good condition then you will refund this deposit upon vacancy after they have provided utility clearance bills and handed back the keys.
Rents in Dubai are generally pay in 3-4 cheques over the year and these are provided at the start of the tenancy, by the tenant, to be deposited by you on the dates agreed. In the rare occasion a tenant may be able to pay in 1 cheque (full years rent upfront), in this case the Tenant will usually try and negotiate a lower rent to compensate for the rent being paid, in full for the year.
Upon clearance of the 1st cheque and deposit the Agent/Landlord will hand over the keys to the Tenant and they will connect the DEWA in their name and apply for an Ejari Certificate, which is a registration of the lease with the Dubai Land Department.
Laws
Dubai Rentals are covered by its own judicial court called the Dubai Rental Dispute Centre, here you can register any complaints you have with your tenants and vice versa.
Further information can be found at:
https://www.dubailand.gov.ae/Style%20Library/rntl/Law%20No.%2026_en.pdf
Renewal of Contract
Should you and your tenant wish to renew the tenancy after the first year and wish to negotiate the price this is done in line with the Dubai Rental Calculator which tells you what todays current rate it and you can find out if you are due a increase or if the rent should remain the same amount.
Cancelling the Lease
If you wish your tenant to vacate the property then it is important to note the following law.
Article (25) 1. Landlord may demand eviction of tenant prior to expiry of tenancy period in the following cases: a. If tenant fails to pay rent value, or part thereof, within thirty (30) days of landlord’s notification for payment.
b. If tenant subleases the property, or part thereof, without landlord’s written approval and in such case eviction shall be applicable to subtenant, and his right to refer to tenant for compensation shall be reserved.
c. If tenant uses, or allows others to use, the property for illegal or immoral activities.
d. If tenant causes changes that endanger safety of the property in a way that it cannot be restored to its original condition or if he causes damage to the property intentionally or due to his gross negligence to take proper precautions or if he allows others to cause such damage.
e. If tenant uses the property for purposes other than the purpose it was leased for or if he uses the property in a way that violates planning, building and land using regulations.
If the property is in danger of collapse, provided that landlord must prove such condition by a technical report attested by Dubai Municipality. eg. If tenant fails to observe legal obligations or tenancy contract conditions within (30) days from date of notification by landlord to abide by such obligations or conditions.
2. Landlord may demand eviction of tenant upon expiry of tenancy contract in the following cases:
a. If development requirements in the Emirate requires demolition and reconstruction of the property in accordance with government authorities instructions.
b. If the property requires renovation or comprehensive maintenance which cannot be executed while tenant is occupying the property, provided that a technical report attested by Dubai Municipality is to be submitted to this effect.
c. If landlord wishes to demolish the property for reconstruction or to add new constructions that prevent tenant from benefiting from the leased property, provided that necessary licences are obtained.
d. If landlord wishes to recover the property for use by him personally or by his next of kin of first degree.
However, in all above mentioned four cases, landlord must notify tenant with reasons of eviction at least ninety (90) days prior to expiry date of tenancy contract.