Renting out a house in Dubai is not rocket science. Still, there are some aspects you must consider before entering your first deal. The most important nuances are the tenancy contract peculiarities, Ejari registration, eviction procedure. Besides, you should clearly understand when you can raise your rental price and how to settle a rental dispute in Dubai.
1. Tenancy contract peculiarities
In Dubai, you shall use a unified tenancy contract form to legally secure your tenancy relationships. This contract contains general terms and conditions and stipulations regarding the most important rights and obligations of both sides. Besides, you can always add your additional terms, if any. The contract is both in Arabic and English, with Arabic as a priority. Thus, if you are going to add your extra terms, using the Arabic language is a must.
2. Ejari registration
Yes, in Dubai every tenancy contract must be registered with Ejari, a specially assigned system that keeps records for all rental deals in the Emirate. Ejari registration is a key to open such doors as setting up utilities on your tenant’s name and settling rental disputes via a special department.
3. When the landlord has the right to evict the tenant and how to proceed
You can’t evict your tenant whenever you want. On the contrary, the Government strictly defines the eviction cases and the procedure. For example, you can evict your tenant with a valid tenancy contract for specified contract breaches. However, to start the procedure, you shall officially notify your tenant 30 days in advance. Also, you can’t refuse to renew the lease unless you plan to sell, renovate, or demolish the house. Or unless you or your family wants to live there. However, to start the procedure, you shall officially notify your tenant 12 months in advance.
4. When the landlord has the right to raise his rent and how to proceed
You can’t raise your rent whenever you want. The procedure is also regulated. As well as a rental increase cap within which you can vary. To start with, currently, you can raise your rent by no more than 20%. But only if you initially incredibly underpriced your property – if its rental is lower than the market average by 40% and more. On the other side, if your current rent is lower than the market average by less than 10%, no increase is allowed. To go further, it is Dubai Real Estate regulatory agency that determines and sets the average rent value on the market. At least, you can raise your rent only for the next lease renewal. Besides, you must notify your tenant 90 days in advance.
5. Where to apply in case of any rental disputes
In case you can’t settle your dispute with your tenant amicably, you shall file a case with the Rental Dispute Settlement Centre. Besides, this is the only organization that can help you evict your tenants (in case you have the right to evict, of course). The Police can do nothing without an eviction note by the RDSC. Keep in mind, to file a case with the RDSC, you must provide your Ejari first.