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Expenses Involved in Renting a Property in Dubai

  • Security Deposit: The security deposit for unfurnished properties is typically 5% of the annual rental value, while for furnished properties, it is usually 10%. The deposit should be dated on the same day as when you secure the property. The landlord will hold this deposit until you vacate the property, and any outstanding bills or expenses such as cleaning and painting will be settled or deducted from the deposit.
  • Rental Payments: Rental payments can be made through 1-4 cheques. The first cheque should be dated on or before the start date of the tenancy contract, while the subsequent cheques can be post-dated (PDC).
  • Agency Fee: There is an agency fee of 5% + VAT (5%) of the annual rent, which is payable upon signing the tenancy agreement.
  • Ejari Registration: The cost of Ejari registration is AED 220, inclusive of VAT. Ejari is the online registration system for tenancy contracts in Dubai.
  • Utility Down Payments: Depending on the developer/providers, you may need to make down payments for DEWA (Dubai Electricity and Water Authority), air conditioning, gas, and telecommunications services.
  • Moving Expenses: If you are relocating from another property within Dubai, you may incur moving expenses.
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Seamless Rentals: Find Your Perfect Home with Ease

Explore Dubai's Rental Opportunities: Find Your Ideal Property for Rent

Dubai is a thriving urban centre offering many housing options for residents. Whether you seek compact city centre apartments or spacious suburban villas, many choices cater to your needs and budget. If you are interested in renting properties in Dubai, it is essential to familiarize yourself with the rental process. Given the intense competition in Dubai’s rental market, it is crucial to be well-prepared before embarking on your search.

To simplify your property hunt, it is advisable to enlist the services of a reputable and experienced real estate agency that specializes in the communities you prefer. In the meantime, let’s delve into the fundamentals of renting in Dubai, enabling you to start smoothly.

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Navigating the Rental Process in Dubai

As a landlord in Dubai, it is crucial to understand the significant responsibilities that come with it, as the laws governing rentals are stringent. It is essential to familiarize yourself with the required documentation for both landlords and tenants, as well as the tenancy laws and the current rental process in Dubai.

1. Your Budget

The initial step is to assess your budget. In Dubai, it is common practice to pay the entire year’s rent in advance, typically in 1-4 cheques, as agreed upon with the landlord. Additionally, it is crucial to account for additional expenses during your rental property search.

2. Choosing the Ideal Location

Once you’ve set your requirements, begin searching for suitable properties. Our experienced agents, familiar with Dubai’s diverse areas, will guide you throughout the process. They provide insights on each location, explain key details, and help you find the best accommodation within budget, ensuring confident and informed decisions.

3. Finding the Perfect Property

Beyond its thriving economy, Dubai is celebrated for its luxurious lifestyle and endless leisure opportunities. From world-class shopping and fine dining to architectural wonders like the Burj Khalifa, the city offers unmatched attractions. With numerous five-star hotels and resorts, visitors enjoy a truly lavish experience.

4. Booking/Reserving the Property

Once you finalize your property choice and agree on details such as price, cheques, and move-in date, the next step is preparing a security deposit cheque. This cheque must be issued in the landlord’s name, matching the details on the property’s Title Deed.

5. Investment Opportunity

Dubai offers countless reasons to invest in residential property—from its strong economy and luxury lifestyle to its safe, secure environment. Catering to diverse aspirations, the city continues to attract investors. If you’re considering property investment, now is the ideal time to begin your journey in Dubai.

6. Property Inspection and Moving In

After choosing a rental property, conduct a thorough inspection of the interior and exterior with your agent or landlord. Check moving policies from building management, as some require permits or specific timings. Once the tenancy agreement and cheques are submitted, you’ll receive the keys to your new home.

Effective Strategies for Owning and Leasing a Rental Property in Dubai

Your real estate representative should perform a comprehensive market analysis to provide you with the following information:

1. A competitive and fair rental price that can attract potential tenants successfully.
2. The average duration of properties like yours on the market.
3. The current market conditions in your area, determining whether it favours renters or landlords.
4. Factors that can positively or negatively impact the leasing of your property.
5. The type of lessee you can anticipate.

Additionally, your agent should offer thorough guidance on the leasing process, the relevant laws in Dubai that directly affect you, and how the landlord and tenant relationship operates.

  • FAQ

Frequently asked questions

Can You Guide Me Through the Buying Process?

Generally speaking, the buying process follows the following steps:

  1. The buyer and seller finalise and sign their sale agreement. It includes various elements, such as:
  • The purchase price.
  • Additional expenses such as the agency fee, transfer fee at the DLD, the developer’s fee, service charge refund, etc.
  • The transfer date of the deal at the DLD.
  • Terms of payment.
  • Responsibilities and penalties for both parties if they fail to uphold the conditions in the agreement.
  • Both parties sign the Memorandum of Understanding (MoU), a sample of which can be found on the Dubai Land Department website. The buyer pays 10% of the purchase value upon signing the MoU.
  • The buyer applies and pays for a No Objection Certificate (NOC) from the real estate developerfrom whom they are buying the property. NOC is a required document from the developer, allowing the transfer of ownership and permitting the buyer to proceed with the purchase. The NOC is provided once the buyer makes all the service charge payments.
  • After obtaining the NOC, the buyer meets the developer or seller at the Dubai Land Department to get the new title deed, proving the buyer’s legal right to own the property. The buyer makes the complete payment of the property price through a cheque and obtains the title deed. 

Dubai’s real estate market is transparent and it offers a high return on investment (ROI) for buyers and investors. It is the ideal market to invest in due to the following reasons:

  • Tax-free incomes.
  • Top-notch infrastructure and diversified economies.
  • High income from property, so much so that the income compares to London’s and New York’s.
  • High living  standards and excellent living conditions.
  • Safe and secure environment, suitable for families.

This is one of the most common real estate FAQs, and since the UAE is a tax-free country, you do not have to pay taxes on the property. But as a property owner, you will have to pay annual maintenance and service charges. The payment frequency varies from one to four times a year, depending on the property.

The Value-Added Tax, also known as (VAT), applies to sales of commercial property, which are subject to VAT at 5%. However, it does not apply to the following:

  • Sales or leases of residential property.
  • Leases of commercial property.

Freehold property is one that the buyer owns in addition to the land it is built on. This way, the owner is free to keep the property, lease it or sell it, as they have complete authority over the property and how to use it following the rules and regulations. The aim of these properties is to encourage foreign investments.

Even though complete foreign ownership was not possible in Dubai until 2006, the government has made new incentives allowing full foreign ownership. The short answer is: Yes, you can have 100% property ownership in Dubai. Foreigners can buy properties in free zones, such as Al Furjan and Palm Jumeirah and enjoy full ownership.