A lease of immovable property is a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms.
The transferor of property is called the lessor, the transferee is called the lessee, the price is called the premium, and the money, share, service or other thing to be so rendered is called the rent.
A lease of immovable property from year to year, or for any term exceeding one-year or reserving a yearly rent, can be made only by a registered instrument. All other leases of immovable property may be made either by a registered instrument or by oral agreement accompanied by delivery of possession. Where a lease of immovable property is made by a registered instrument, such instrument binds both lessor and the lessee.
From our experience, we find that providing a few ‘helps’ like the following will definitely speed up the process of renting/leasing:
- Kitchen appliances, including cooker and refrigerator
- Landscaping the garden area
- Flexibility on the number of cheques for the rental
The relationship between the tenant and landlord has been regulated by issuing Law No 26, 2007 by the ruler of Dubai his highness Sheikh Mohammad Bin Rashid The related law was formed in Dubai on Nov 26, 2007 and executed by RERA.
The landlord and tenant relationship is composed after signing a writing tenancy agreement which should cover the following:
- The unit description
- The purpose of agreement
- The owner name
- Land registration No. and location
- Duration and the rent allowance.
If duration unspecified in the agreement it shall not exceed the time on which the lessee was paying his rent. When any party has an intention not to renew the tenancy agreement the party intended to do the same should send 90 days notice to the other party prior to the expiry of the rental agreement.
Yes, it is mandatory for the landlord to clean and service the property before handing over the keys to the new tenant.
The tenant is responsible for the cleaning and up keep of the property. Should there be a pool or garden, the landlord is responsible for the maintenance of the pool pump or any sprinkler system. The landlord is also responsible for any maintenance charges to the property, a clause which should be stated in the contract.
The landlord may not increase the rent higher than 5% (in Dubai and Abu Dhabi) of the existing agreed rental amount for a period of 3 years.
Your agent will be your point of contact. Should something break or get damaged, they will notify the landlord, he may request you see to the problem & then reimburse you for the costs or request a quote & then repair the damages or breakages at a convenient time & date that suits you.
Rent is paid in advance, by means of post-dated cheques, in 1, 2 or 3 equal payments, or as determined on the tenancy contract.
If a tenancy contract is cancelled before expiration date, the tenant will be responsible for the rent until a new tenant is found, the remainder of the rent will be paid Pro-Rata from the date of the new contract to the expiration date.
A tenant cannot sign a lease agreement if they do not have a valid residency visa, if the visa is being processed, then the tenant’s company needs to provide a letter stating that it is under process.
Redecorating the property can be done with the permission from the landlord; however the landlord may request that you leave the property in the same condition as it was handed over to you.
Pets are allowed to be kept on the premises, provided you have approval from the landlord.
Sub-leasing is illegal without the approval of the landlord.
Deposits are down to the discretion of the landlord, but are never more than 5% of the annual rent amount, but may vary should the property be furnished, then the deposit amount may be slightly higher.
Usually a lease agreement is signed for one year and renewable thereafter, however short-term rentals are available for those who do not require a long-term commitment.
Upon moving into the property, you will have to get the utilities connected. DEWA (Dubai Electricity & Water Authority) is required & a deposit of AED 1,000 – AED 2,000 is payable, which is refundable when the service is terminated & fully paid up.
Consider the surrounding amenities, eg. Shopping, schools, hair salon, & all the “small things” you like, look at possible work routes & traffic factors. Contact our agents to show you around unfamiliar areas, or areas that will suit your needs & budget.
You only pay the fee when signing the lease agreement to secure your property. The agent should not charge you a fee of more than 5% of the annual rental amount.
In the UAE, it is a criminal offence to have a cheque dishonoured and the payee can be imprisoned, until the payment is settled.
The tenant-landlord disputes are dealt with by the RERA’s Rent Committee.
In case of dispute and arbitrator unable to do his job or refused and landlord and lessee failed to assign a new arbitrator, the committee should assign on the request of any of them arbitrators to continue the arbitration process.