Although the wording in the standard contracts does not appear to imply any otherwise, any Dubai rental agreement for one year or longer shall not expire and shall be terminated by a written notice dating back 12 months (Law No. 33 of Article 2 of 2008) stating exactly why the contract has been completed, i.e., occupancy, alienation, demolition, etc. Also – contrary to widespread assumption – the contract renewal deadline must not have lapsed till an expulsion notice is admissible. More simply, termination notice can be provided to a landlord at any time once the contract is in force.

Ejari is the governmental mechanism for certifying tenancy contracts and gathering market data to feed rental indices. While the (residential) renter regularly asks that the Ejari register request a visa, the landlord does not apply in practice. However, you should ensure that your rental agreement with Ejari becomes a prerequisite for approaching the rental dispute resolution center (“Dubai Rental Committee”) in the event of any issue with the renter.

Ensure that the renter is eligible for the respective tenancy contract. A legitimate residence visa is required for an individual. At the same time, a corporation is proven to have a valid trading license granted by the Dubai Economic Development Department (DED) or, in some cases, the appropriate free zone authority. In a business tenancy, also apply for a certificate of responsibility to authenticate a signatory’s source.

Ensure that you check the RERA increase calculator more than 90 days before the contract renewal date to determine whether you are eligible to increase rent based on the rental index. Please inform the tenant of the rent increase requested at least 90 days before the renewal date through a notary public, registered mail, or courier.

When your contracts are signed and exchanged, make sure that you get all current and postdated checks (rental payment) and a deposit check that the industry standard is 5% of the annual rental. When the renter is an enterprise, also request a copy of the signatory’s passport (contract, cheques).

Prepare and have this procedure, by both parties, signed specific notes (potential damage, paint) of the unit and its contents. Include all objects such as keys and cards of access given in their quantity. Take pictures of the property as a further reverse measure.

Even while the real estate industry in Dubai has been dramatically professionalized in recent years, the choice of a reputable and well-established real estate agent is crucial. Make sure you make this pick meticulously and back it up with references from colleagues who have already handled your partner of choice whenever possible. Since brokers are typically focused on specific sectors, areas, or even buildings, ensure that the agent you choose has extensive knowledge. Prospective customer flows inside your segment and area.

To demonstrate their profession, the agent should demand you to file the relevant documents such as title documents and passport copies and ask you to conclude a marketing contract or the standard form, as published and requested by RERA in case of a sales transaction.

This final issue of picking a relevant agent cannot be sufficiently stressed since hiring incompetence in this field will most likely lead you to lose possible tenants and hence rents. Although the above things are certainly not exhaustive, they cover the investor from the most important and prevalent problems during a leasing procedure, as my experience suggests. However, I want to emphasize that the Dubai rental law is quite strict, precise, and concise, so it does not necessarily ask for legal guidance on implementing routine transactions.

 

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