Everything you need to know about leasing your property in Dubai

  • 8th Feb 2023
  • Dubai

Owners let out their properties in Dubai for two primary reasons: 

Leasing your property in Dubai is a great way to grow your portfolio, which increases the possibility that your investment will pay off sooner rather than later. Owning rental property is one of the most authentic types of investment.

Second, the government's guarantee of protection for landlords and tenants is another important consideration. Whether it is an apartment, townhouse, or villa, clear policies have been established to protect the interests of all parties involved. In the event of a disagreement, the Real Estate Regulatory Agency (RERA) makes decisions quickly and transparently. Naturally, this creates a win-win situation in which people feel safe and confident in investing their hard-earned money. 

Importantly, all rental properties in Dubai must be registered with the Real Estate Regulatory Agency (RERA). This includes obtaining a lease registration number, which must be included in all the lease agreements.

Understanding the market, setting the best price, and determining the appropriate value of properties are the keys to success for investors. A comparative market analysis known as CMA will help you determine how much rent can be demanded for your property. Using real estate companies is a simpler way to accomplish this goal.

Every property has special characteristics that can either enhance or decrease its value. Setting the price too high risks turning away many potential tenants, and the delay will cost you capital. Alternatively, a significant amount of money can be lost by agreeing to a lower price. Comparative market analysis may greatly assist renting an apartment, a townhouse, or a villa in Dubai. 

Once everything appears in order, a tenant must be a resident of the United Arab Emirates (UAE) and have a valid passport, an Emirates ID, a local bank account, and a chequebook. Lease agreements, which are called Ejari Registration, should be in writing and include details such as the property address, details of both the landlord and tenant, the lease term, the rent amount, and any other terms and conditions. It is also important to note that all lease agreements must comply with Dubai's rental laws, which include caps on rent increases and limits on security deposits.

Once the Ejari contract is signed, tenants must pay the landlord in cheques which is the preferred method and is typically used to make rental payments. The number of cheques and instalments varies according to the landlord and tenant's agreement. 


Understanding the laws and regulations surrounding the security deposits in Dubai is also important. Security deposits are typically equal to one or two months' rent, approximately 2000 AED for an apartment and 4000 AED for a villa or townhouse. They should be returned to the tenant at the end of the lease, provided that there is no damage to the property. If there is damage, the landlord can deduct the repair cost from the deposit. Security deposits provide landlords with financial protection. 

Make sure you understand the provisions of a rental agreement before signing it. Depending on where you live, different utilities and permits such as a move-in permit, Dubai Electricity and Water Authority (DEWA) registration, gas connections, empower, and chiller may be your responsibility. Some apartment or villa communities include everything, while others are set up such that the tenant pays the bills directly. 

In Dubai, landlords can increase their property rent if they follow the procedures outlined in Dubai Rental Law No. 26 of 2007. The law requires landlords to provide at least 60 days' written notice to tenants before increasing the rent. An increase in must be reasonable and in line with market trends, which is 5% every year.

A landlord may evict a tenant for several reasons, such as non-payment of rent, violation of a lease agreement, or unauthorized use of the property. The eviction process is governed by Dubai Rental Law No. 26 of 2007, which requires the landlord to give written notice to the tenant for a minimum of 90 days beforehand. It allows the tenant to iron out the issue before eviction.

For example, if a tenant fails to pay rent, the landlord must give a written notice, allowing at least 10 days for the tenant to pay. If the tenant fails to pay the rent within 10 days, the landlord may file a case with the Dubai Rent Committee for eviction.

Regarding property maintenance, landlords are responsible for maintaining the property in good condition and making necessary repairs. On the other hand, tenants are responsible for keeping the property clean without causing any damage. The cause determines any damage during the tenancy; if the damage is less than AED 500, the tenant is responsible for repairs; if the damage is more than AED 500, the landlord is responsible for repairs.

The Dubai Rent Committee resolves disputes between landlords and tenants. The Rent Committee is a government body that was established to resolve disputes between landlords and tenants.

Overall, leasing property in Dubai requires careful planning and a thorough understanding of the local real estate market. Property owners must know legal requirements and regulations, set competitive rental rates, and choose reliable tenants. A solid lease agreement is essential for protecting the interests of both parties. Working with a reputable real estate agent can simplify the process and ensure compliance with the law. It is important to conduct market research, set realistic expectations, and be prepared for any challenges that may arise during the leasing process. By taking time to understand all aspects of leasing property in Dubai, landlords can maximize their investment and build a successful real estate portfolio.

We only stop once you're satisfied. For more information, check out our list with us, an exclusive brochure, or watch the recent episode of our podcast Real Estate & Real Life, where we answer all your questions on complete listings. So if you’re looking to sell your home, get in touch with your community property consultant.

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