Renting properties in Dubai

In Dubai, rents are normally paid for the entire year up front, either in cash or cheques. Cheque payments are restricted to 1, 2 or 3 installments. All landlords require the Tenant to pay a refundable security deposit that is usually 5% of the annual rental amount. An additional deposit of AED 1,000 to 2,000 must be paid to the electricity/water (DEWA) provider of the emirate you are residing in when you move into the property. A few emirates also expect Tenants to pay municipal tax on the leased property.

Most rental or lease agreements in Dubai are renewed annually. If the same Tenant wants to renew the lease agreement for a 2nd year, the rental amount, as well as the terms and conditions of the agreement will stay the same. Should the same Tenant wish to renew for a 3rd year, the Landlords can only raise the rent at the time of renewal, by 5%, in Dubai (effective since Jan 1, 2008). Should a new Tenant move into the property, the rental amount is at the discretion of the Landlord and usually at the current market rate. Any Tenant-Landlord disputes are adjudicated by the Municipality’s Rent Control Committee.

In the UAE, landlords are not allowed to evict tenants without just cause during the tenancy term and are responsible for all the major maintenance of their property, as well as any service charges for the property.

Dubai is set to announce a tenancy law that will create a new legal framework to handle disputes between landlords and tenants. The law will also redefine the relationship between landlords and tenants, as well as specifying rules on subletting, bachelor accommodation and other "social aspects", according to UAE daily, Gulf News. The new law is expected to replace the current arbitration system used to settle disputes.