Leasing process from the landlord perspective;
MOHAMED BRISHA
Sr. Relationship Officer at ADCB | Expert in Personal Loan & Tailored Financial Solutions
If you're a landlord, you can manage your property's leasing yourself, but many landlords prefer to work with a broker who is familiar with the legal requirements. A broker can help with various aspects of renting out your property.
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How a broker can assist in renting your property:
A broker can:
- Advertise and list your property online (brokerages usually cover the cost of listing on platforms like Property Finder Finder, Bayut.com , and dubizzle ).
- Handle calls and inquiries from potential tenants, filter out unqualified leads, schedule viewings, and attend them. This saves landlords time, effort, and stress.
- Negotiate lease terms with prospective tenants, ensuring the landlord’s best interests are protected and legal requirements are met.
- Manage paperwork and inform tenants about their responsibilities, such as explaining fees, schedules, and expectations.
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Preparing Your Property for Leasing ???
Make your property tenant-ready by ensuring it’s in top condition. Regular maintenance, cleaning, and, if possible, staging can enhance its appeal. Presenting a well-maintained property not only attracts quality tenants but also boosts rental value. Ensure utilities and facilities are in working order and, if applicable, repair any visible damages.
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Security Deposit:
- The security deposit is typically 5% of the total lease value, and sometimes 10% for furnished units (this isn’t required by law). The deposit is returned when the property is returned in good condition.
- If the tenant vacates early without giving the agreed-on notice period, the security deposit can cover unpaid rent.
- It can also cover damage beyond normal wear and tear.
- If landlord sells his property, it’s advisable to handover the deposit at the time of transferring to buyer.
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The security deposit covers;
- Lost rent.
- Property damage.
- Lost keys.
- Non-wear-and-tear repairs.
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Normal wear and tear; generally, refers to the expected deterioration of a rental unit as a result of the tenant's everyday use. This can include things like loose doorknobs, worn out carpet, and minor scratches on the walls and floors.
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Ejari System “my rent”:
Ejari is a system that registers rental agreements to ensure compliance with rental laws. It was created by RERA in 2010 and can be done through the Dubai REST app or at Ejari typing centers.
- Ejari costs 220 AED, and landlords are responsible for registering it, although tenants typically do it.
- Tenants need Ejari for DEWA, family sponsorships, and phone/internet services.
- Cancellation of Ejari costs 40-50 AED.
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Ejari Registration Requirements:
To register, you need:
- The Unified Tenancy Contract (UTC).
- Title deed.
- DEWA number.
- Tenant's passport and Emirates ID.
- For commercial properties: trade license or DED approval.
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Property Management:
Property management is the daily oversight of residential, commercial, or industrial real estate by a third-party contractor. Generally, property managers take responsibility for day-to-day repairs and ongoing maintenance, security, and upkeep of properties. And charges landlords for their services.
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Landlord’s Responsibilities:
Landlords must provide a safe, habitable property and maintain it:
- The property should be in good condition when handed over for occupancy.
- Defects affecting tenant use must be repaired.
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- Utilities cannot be disconnected, and tenants must be allowed to occupy the property.
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Eviction:
- Tenants can renew their lease even if the contract has a clause that prevent the renewal. If a tenant is wrongfully evicted, they can seek protection from the Rental Disputes Center (RDC).
- The landlord must give 12 months’ notice before eviction, and this notice must be sent via registered mail or notary public.
- After eviction, landlords cannot re-list the property for two years (three years for commercial properties).
- Exceptions include if the landlord moves in themselves, sells the property, or requires significant repairs that can’t be done if the tenant accommodate.
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Legal Eviction:
A tenant may be evicted with 30 days' notice for:
- Non-payment of rent.
- Breach of terms.
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Immediate Eviction:
Tenants may be immediately evicted for:
- Illegal use of the property.
- Subleasing without permission (landlord’s permission).
- Dangerous alterations to the property.
- Commercial tenants failing to occupy for over 30 days continuously or 90 days non-continuously in a year (it makes the area looks neglected).
- Violating pet policies or other rules.
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Forcing an Eviction:
Landlords cannot forcibly evict tenants by cutting off DEWA, canceling key cards, or blocking access to the property. The RDC will handle such cases if tenants don’t comply.
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RDC (Rental Disputes Center) Protection:
The RDC (Rental Disputes Center) protects both landlords and tenants, ensuring unlawful clauses in contracts are not enforced. It also offers compensation for wrongful evictions.
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Filing a Case with the RDC:
Required documents:
- Original lease agreement
- Proof of payment (bank statements or cheques)
- Ejari and DEWA bills
- Passport, Emirates ID, and title deed
- New lease agreement if applicable
- Filing fee (3.5% of the lease) and not less than (AED 500) and not more than (AED 20,000).
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Travel Ban:
Non-payment of rent can lead to a travel ban, but once the outstanding rent is paid, the ban is lifted.
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Rental Good Conduct Certificate:
This certificate lets parties review each other’s rental history before entering into a lease. So, the landlord can review the tenant’s rental history and vice versa.
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Rental Increase Cap (2023):
Landlords must give 90 days' notice before increasing rent. Valuations through Ejari cannot exceed the rental increase cap laws. and the increase is limited to 10% of the current rental value.
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This information covers the essential responsibilities and rights of landlords and tenants in Dubai, as well as guidance for using brokers, managing property, and handling disputes.
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