Renting process & fees
The renting process in Dubai for landlords and tenants involves several steps and various fees. Here's a comprehensive overview of the process, including associated fees.
Ensure that your property is well-maintained, clean, and in a suitable condition for renting. Consider any necessary repairs or improvements to attract potential tenants.
Engage a Real Estate Agent
Research and select a reputable real estate agent who specializes in Dubai's rental market. The agent will assist in marketing your property, finding suitable tenants, and managing the rental process. The agent's commission is typically a percentage of the annual rent, ranging from 5% to 10% (plus VAT).
The real estate agent will evaluate your property's rental value by considering factors such as its location, size, condition, amenities, and current market rental rates.
Sign a listing agreement with the chosen real estate agent, outlining the agent's responsibilities, the duration of the listing, and the agreed-upon commission.
Marketing and Promotion
The agent will create a marketing strategy to advertise your property to potential tenants. This may involve online listings, property portals, social media promotion, and leveraging their network of contacts. The costs associated with marketing are typically covered by the real estate agent.
The agent will schedule and conduct property viewings with interested tenants. They will highlight the property's features, answer questions, and address any concerns potential tenants may have.
Tenant Selection and Screening
Once interested tenants submit applications, the agent will assist in reviewing their credentials, including employment verification, background checks, and credit checks. This step helps ensure the suitability of the tenant.
When a suitable tenant is selected, a tenancy contract is prepared. The contract outlines the terms and conditions of the lease, including the rent amount, payment schedule, duration, and any additional terms or clauses.
As a landlord, you must register the tenancy contract with the Dubai Land Department (DLD) through the Ejari system. The registration fee is typically AED 210 (including VAT).
Collect a security deposit from the tenant, typically equivalent to one to three months' rent. This deposit serves as protection against any damages or non-payment during the tenancy period.
Search for suitable rental properties based on your preferences, budget, and desired location. Utilize online listings, real estate agents, or property portals to find available options.
Engage a Real Estate Agent
Consider engaging a real estate agent to assist you in finding a suitable rental property. The agent's commission, typically equivalent to one month's rent (plus VAT), is typically payable by the tenant.
Visit the shortlisted properties to assess their suitability, amenities, and condition. Coordinate with the real estate agent to schedule property viewings.
Once you find a suitable property, submit a lease offer to the landlord or the real estate agent representing the property. The offer should include your proposed rent amount, lease term, and any special conditions.
When your offer is accepted, a tenancy contract will be prepared. Review the contract carefully, ensuring that all terms and conditions align with your understanding and requirements.
Pay the agreed-upon security deposit to the landlord. This deposit is refundable at the end of the tenancy, subject to fulfilling the lease terms and conditions.
As a tenant, it is your responsibility to ensure that the tenancy contract is registered with the DLD through the Ejari system. The registration fee is typically borne by the tenant