Your step-by-step guide to renting in Dubai

Dubai - If you're worried about getting duped or looking to protect your interests from greedy landlords and sketchy middlemen, here's a step-by-step guide to help you through the process.

Imagine this. The rent you pay for a roof over your head goes through the roof. Then your landlord tells you he wants to increase the rent further up with no notice at all. What do you do?

Such have been the woes of British expat Toby Young and many professionals trying to make it in Dubai, the land of opportunities.

"It all started in 2009 when I moved to a 3-bedroom apartment in Dubai Marina. One fine day I found that I was barred from using my building's parking facility and access cards. My landlord, who had failed to pay the service charge, assured that the problem would be resolved. After a few months and failed attempts to reach my landlord, I decided to report the issue to RERA (Real Estate Regulatory Agency)," said Mr. Young.

The verdict was in his favour.

The rental rage didn't end there. He later moved into another apartment in Palm Jumeirah, where the landlord wanted to increase the rent without any notice, and another gave a notice of only 60 days, as opposed to the mandatory 90 days.

All in all, in the seven years that he spent in Dubai, he brushed with his landlords THRICE. Each time he reported to RERA and won the case.

Luckily, Mr. Young was aware about his legal rights. However the majority of 'generation renters' in Dubai are not familiar with the tenancy laws in the UAE. And when it comes to battling it out legally, there's no place for the ignorant.

For those of you worried about getting duped or looking to protect your interests from greedy landlords and sketchy middlemen, here's a step-by-step guide to help you through the process.

Steps to finding an apartment

Step 1. Search apartment listings in websites such as KT buzzon, dubizzle, propertyfinder.ae, JustProperty.com, bayut. You can limit the listings based on your needs such as number of rooms, areas, furnished/unfurnished, etc. The advertiser usually states the following clearly:

- Rental Amount

- Number of cheques over a rental year

- Security deposit (usually 5% of the rental amount)

- Furnished or unfurnished

- When can the unit be viewed

- Desired starting date

- Any other conditions

Step 2. Shortlist a few apartments that meet your requirement and call up the contact person mentioned in the listing, who will either be the agent or landlord. It's advisable to formulate a plan and narrow down your preferred locations three months in advance. Usually the landlord/agent is more likely to be interested in you if you're ready to move in within a month's time.

Step 3. View the unit:

This is the obvious next step. Make sure you take note of the minute details when you visit (take photographs if required.)

A few points to keep in mind:

- Access to and from the metro station or bus stop, in case you don't drive

- Security

- Proximity to your workplace

- Noise in the area

- If possible interact with the neighbours to know if they face any challenges

- Facilities such as gym or swimming pool

- Parking facilities

Step 4. Making an offer

In case you decide to take the unit, you may want to negotiate on the rental amount. The most common way to go about this is to bargain on the number of cheques. Sometimes the landlord agrees to reduce the total rental amount if the number of cheques is reduced.

Don't forget to clarify other specifics such as when the contract will start, its duration, and deposit amount.

Step 5. Reserve the property

If you want the landlord/agent to secure that unit for you, you will be asked to pay a refundable security deposit. It's usually 5% of the rental amount.

The cash or cheque is made payable to the landlord but is held by the agent until the deal has been finalised. Make sure that you are given a receipt for the deposit. If you later choose to back out from the deal, the agent will rightfully hand over the cheque to the landlord.

At this point, you also need to provide the following to the agent:

- Your Passport

- Residence visa copy (or an original letter from your sponsor/company stating that your visa is under process)

Step 6. Drafting the contract

The agent will then send the Tenancy Contract which will include all the information regarding the rental (including any special conditions agreed by both parties). Go through it thoroughly and suggest changes if necessary. For instance if you want the property to be repainted, make sure it's clearly stated.

The contract must comply with the tenancy laws in Dubai.

Step 7. Signing the contract

After you're convinced about the contract, you may sign and submit, and hand over the rent cheques and the agency commission. Make sure you receive invoices for the same.

The agent will then get the landlord to sign the contract, hand over the cheques to him (sign an acknowledgement receipt).

The landlord will keep one of the signed contracts and the other signed contract can be kept by the tenant. The tenant will be given the keys and access cards. The tenant will also sign a handover form clearly stating that he/she is receiving 'x' amount of keys, access cards, parking bay slots, etc.).

Step 8. Connecting DEWA

The tenant will need to submit the following documents to DEWA (Dubai Electricity & Water Authority):

- DEWA number (found on the side on the property's entrance)

- Copy of the tenant's and landlord's passport

- DEWA form

- Title deed (for freehold property or SPA if it has been bought from a reputable developer) or affection plan

- Dh2,000 (for apartments) or Dh4,000 (for villas) as a refundable deposit, and Dh110 for setup charges

Supply is activated within 24 hours of registration and payment of security deposit.

Online Procedure

1. Online Application Submission Fill-in the online application form with required information.

2. Mandatory required attachments are : Tenancy Agreement Passport with Valid Visa Page/Trade License. You will be required to pay Security Deposit online using ePay.

(Info from DEWA website)

Step 9. Ejari Registration

The following documents are required:

- Original tenancy contract

- Original receipt of DEWA connection in the tenant's name

- Title deed (for freehold property or SPA if it has been bought from a reputable developer) or affection plan

- Copy of the tenant's and landlord's passport

- Copy of Emirates ID

Step 10. Move-in form

Some developers need the tenants to submit an NOC before they can move into the property. The following documents are required:

- EJARI Certificate

- Passport and visa copy of the tenant

- Copy of the Tenancy Contract

- Move-in form

For instance, the security in the building could be such that they don't allow tenants to move in on Fridays. The tenant must raise these questions with the landlord before hand.

NOTE: The rents can have a fixed contract, which is usually one year, or no contract. In case the contract is for less than a year, it falls under short-term rental. The laws are governed by Dubai Tourism board.

(Inputs from veda.ae)

Watch out for these 6 hidden costs

1. Agency fees: Usually 2 to 5% of the first annual rent

2. Ejari fees: Dh195 for all types of properties

3. Housing fee: 5% of annual rents added to DEWA bills

4. Security deposit: Usually one month's rent, refundable

5. DEWA deposit:

Apartment

Dh2,000 (deposit - refund on leaving)

Dh110 (connection, non refundable)

Villa

Dh4,000 (deposit - refund on leaving)

Dh110 (connection, non refundable)

6. Chiller deposit/ gas deposit: Varies according to the provider

10 things to remember before signing on the dotted line

1. Ensure that your real estate agent is Rera registered. They should be able to provide you with their broker number.

2. Write your cheques directly to the landlord. Before handing them over, ask for a copy of your landlord's passport and if possible the title deeds too.

3. Ask your agent to check that all service charges have been paid by the landlord, and if possible get it in writing too.

4. Ask your agent to check that there are no outstanding bills for Dewa or the chiller (air conditioning). If there are, they will need to be paid before you can set up an account.

5. If there are maintenance issues that need to be resolved before you move in, ensure that they are taken care of.

6. Be aware of how many car parking spaces you have. It is not uncommon for there to be only one to share between a husband and wife. Also find out if there is visitors parking too, and how to access it.

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