Tenancy Guide – What you must know before signing a tenancy contract in Dubai?

Dubai is a dynamic property market and every other expatriate who lands there, tends to find a rental property. Finding the right rental property in Dubai at a desirable location and within your budget can be a challenging task. Therefore, negotiating and signing a tenancy contract is pushed to the last-minute thing-to-do. Do you know that the “tenancy contract” is the single most important document in Dubai rental market and must not be neglected?

Instead of rushing through it or considering it a hassle, you must be aware of all the things (or let’s say most of the things) before signing it to make the tenure simple and seamless. Are you fidgeting? Don’t worry! Team HFRE is there to help you comprehend all the things that you need to know before signing your first or the next tenancy contract.

Read the contract before signing it…

As it is mentioned earlier that tenants and landlords negotiate the rental amount and rush to sign the contract. A large number of tenants do not or hardly pay attention to this document but real estate experts suggest to must read the contract. In case, you do not understand it, do not sign it.

St. Regis The Residence

You can ask for a customized tenancy contract…

When it comes to signing a tenancy contract, a majority of Dubai real estate agents have a standard one-pager tenancy document, which is just a template. Therefore, if a landlord is agreed upon a particular requirement, you must demand a customized rental agreement, drafted for you – enlisting your every term and condition.

Does it have an “exit clause”?

The tenancy contract cannot be terminated by a single party, unless agreed between both parties. It is better to include an “exit clause” that allows you to terminate the contract during the tenancy period, if the need arises. The exit clause enumerates the notice period and the penalty payable by the tenant to the landlord. You may have to pay a penalty to terminate the contract and the landlord will also get the right to access the property during the notice period so that he can show it to other clients.

The landlord cannot access the property without tenant’s permission

Once a property is rented out, the landlord cannot enter the property without taking the consent from the tenant – unless the tenancy contract includes the clause that allows the landlord to enter the premises without the tenant’s permission. If the landlord wishes to inspect the property or arrange a viewing in case he wants to sell the property, he needs to take the tenant’s consent before conducting any such activity.

Tenancy contract must be registered…

To make tenancy contract a legal document, it must be registered. It is not the landlord’s responsibility to register it with RERA but a tenant should do it himself or take help from an agent to do the task. Consider it the most important task after signing the contract, because if the contract is not registered with RERA and anything goes wrong during the tenancy period, you cannot file a case against the landlord.

Don’t pay rent in one cheque…

Initially, the trend to pay the rent for the whole year in advance was dominated Dubai real estate market. However, after the market crashed and everyone experienced financial constraints, the tenants started offering rents in more than one cheques. For some developments in a few areas in Dubai, the landlords are also ready to accept as many as 12 cheques for the tenancy term. The real estate experts state that it is not advisable to pay rent in one cheque, otherwise the tenants must ask the landlord for a written term – in order to hold him accountable if anything disturbs them during the rental term.

What if, the property is transferred to a new owner?

If the property is sold to a buyer or transferred to the heirs before the end of the tenancy contract, it will not have any impact on the tenancy contract. It cannot change the tenant’s right to occupy the property until the end of the term – provided the tenancy contract has a fixed date, according to Article 28 of the UAE tenancy law.

Who will pay for what service?

When it comes to signing the rental contract, a tenant can ask to add a few things to the editable rental contract. For instance, before entering into the property, a tenant must be sure about who will pay for what services, for what instances a tenant will need a NOC from the landlord, who will be responsible for repairs, and how often a tenant can avail maintenance services during the tenancy tenure.

Frequently Asked Questions (FAQs)

Q: Why tenancy contract is so important in Dubai?

A tenancy contract is a legal agreement between a tenant and landlord that binds both parties to abide by the rules, throughout the tenancy tenure. It entails all lease related terms and conditions that must be mutually agreed upon before obtaining and giving the right to occupy the property in Dubai. Having a legal and formal rental agreement is crucial in order to avoid any dispute that may occur, otherwise.

Q: What is Dubai tenancy law?

The tenancy contract and the relationship between tenant and landlord are administered by the Real Estate Regulatory Authority (RERA) using Dubai Rental Law No. 26 (2007) and Law No. 33 (2008). All matters related to the increase in property rent are dealt with, using Law Decree No. 43 (2013).

Q: What is Ejari?

Ejari is an initiative by RERA to regulate the rental segment of Dubai real estate. Every tenant and landlord must get their rental contracts registered through Ejari before or right after the lease start date.

Q: Can I get a tenancy contract without a valid Emirates ID?

No, a valid Emirates ID is a compulsion before signing a tenancy contract.

Q: What are the documents required for a tenancy contract?

A valid Emirates ID, copy of passport (landlord and tenant both), copy of valid residence visa, and a cheque for a security deposit are needed to prepare a tenancy contract.

Conclusion

You must know a lot about Dubai rental market so far but if you are interested to get your hands on authentic property listings for rental villas apartments in Dubai, you must call or leave a message to the team HFRE at +971 4876 2473 or write us an email at info@hfre.ae and our experts will help you reach your dream rental property. After all, no one knows Dubai property market, better than us.

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