Who will prepare the leasing contract?
The leasing contract is a legal document governed by the real estate regulatory authority (RERA). It will be prepared by ERE HOMES, signed by both landlord and tenant and is required to be registered with the Dubai Rent Committee. The contract outlines all conditions of the lease and the payments being made.
Do I need to give references?
No. You will not be required to provide references to lease a property in Dubai.
Will i be required to pay a security deposit?
Yes. Upon selecting the property you wish to lease a security deposit will be requested from you by the ERE HOMES agent. The amount is payable by cheque and will be equivalent to five percent of the annual lease amount for unfurnished properties, and ten percent for furnished properties. This amount is payable to the landlord.
Who holds the security deposit?
ERE HOMES will collect the security deposit amount from you when you sign the lease agreement. It will be held in our offices up until the landlord signs the lease agreement at which point it will be handed over to them. The landlord will have the right to cash the security deposit amount for the duration of the term. This will be returned to the you at the end of the lease agreement provided the property is returned in the same condition it was leased out to you.
How are the leasing installments taken?
The rental installments are typically between one to four payments, they are taken as post dated cheques spaced evenly throughout the lease term. These payments will be taken in advance when signing the lease agreement and be held by the Landlord. As each installment is due the landlord or their property manager will cash each cheque.
Are utility bills included when leasing?
All utilities are the responsibility of the tenant. DEWA is the supplier for water and electric in Dubai and for many properties the DEWA will also include the A/C. When not included you will require an additional connection, this is called Empower. For data and television packages there are many suppliers, the main suppliers being OSN, Showtime and Du. In all cases your agent will advise you which connections you require and are best suitable to your chosen property.
What additional fees will I need to pay?
There is an agency fee applicable, being five percent of the annual lease amount. Also for some properties you may require a residents pass, this could be for the access to the pool, beach or fitness facilities. For most properties this is included, but where not included your agent will advise you, and of the costs involved if required.
What happens at the end of the contract?
Standard leasing contracts are for twelve months. Three months prior to the contract expiring your agent will contact you to discuss if you wish to renew. Any changes to the contract are governed by the rental committee and its current laws. If you wish to vacate the property you will be required to inform your landlord three months prior, and at the end of the term an inspection will be carried out and your deposit returned, provided the property is returned in the same condition it was leased out to you.
What precautions should I take when leasing property?
Firstly only work with regulated brokers. Always ask to see the agents RERA broker number. This will ensure they are a registered agent and are licensed to practice in Dubai. Always ask lots of questions and request anything you have agreed with the agent to be included in the lease agreement. When handing over any payments request this to be at the agents office where possible and always take receipts and form a paper trail. If you are unsure about anything, walk away.