Dubai: Thinking about renting a home in Dubai? If you’re leasing a property in the city for the first time, don’t make the mistake of rushing through the lease agreement.Skimming through contracts without understanding associated fees, included amenities, payment terms, and other aspects, can create hassles for future you. You can avoid disputes and surprise fees by pre-empting issues right at the beginning of your rental journey, and we’re here to help.Our curated checklist below, helps break down the basics – these are all the things you should check off your list before signing your rental agreement, so that you can rest assured you’re going into it confident and well-informed.1. Verify the property and landlordBefore handing over your money or signing a lease, it’s important to check if the landlord really owns the property, or if the individual you’re corresponding with, is duly authorised to act on the owner's behalf.In Dubai, it’s easy to confirm ownership through the Dubai Land Department’s (DLD) website, as long as you are able to acquire the Title Deed information from the landlord.Follow these steps to verify the Title Deed and ownership:Visit DLD’s website at dubailand.gov.ae. Click on ‘Services’ and navigate to ‘Verify Title Deed’.In this section, select ‘Validate Owner and Property’.Enter all the relevant information, including the Title Deed number, Title Deed year, property type, and the full name of the owner.If the information is accurate, the website will confirm that the landlord is legitimate, and does, in fact, own the property.2. Negotiate the rentDon’t settle for the first rental fee you are offered. In Dubai, rent is negotiable. Navandeep Matta, senior associate at Kochhar & Co. Inc. Legal Consultants, Dubai, advised: “The rent, number of cheques, payment schedule and other commercial terms can generally be negotiated before signing. Any agreed concessions, rent-free periods or special arrangements should be recorded in writing.”3. Check additional costsAlways ask what is included in the rent, and what you must budget for separately. Often, new tenants make assumptions about included facilities or amenities, and end up with surprise fees a month down the line. According to Matta, here are some additional expenses you should be aware of:Security deposit: This is a refundable sum paid by the tenant to the landlord before moving in, and acts as a safety shield for unpaid rent or utility bills, and property damage beyond normal wear and tear.Agency commission: This applies if you found the property with the help of a rental agency. The commission fee is typically 5% of the first year’s annual rent plus VAT charges, and is usually paid upfront by the tenant.Ejari registration: Ejari is the Dubai government’s official online registration system for tenancy agreements. While the landlord must ensure the completion of Ejari registration, tenants often opt to handle the process themselves, in order to obtain or renew their residence visas and activate Dubai Electricity and Water Authority (DEWA) services.DEWA deposits or connection charges: Applying for electricity and water supply is an important first step for tenants.District cooling charges (where applicable): If the property is not ‘chiller-free’ and has district cooling, you will need to pay a separate chilling bill, as the charges are billed by independent district cooling providers, such as Empower, Tabreed, and Emicool. If the property is ‘chiller-free’, this means your air conditioning cost is included in the rent, and the landlord covers the monthly cooling charges.4. Read the additional terms carefullyWhen reading the rental contract, take your time and review each clause carefully.Matta advised going one step further and examining the additional terms as well. He said: “Tenants should not focus only on the standard tenancy contract. Additional terms relating to maintenance, repairs, early termination, renewal, notice periods and return of the security deposit should be carefully reviewed before signing.”If you’re in doubt, clarify with the landlord. Make sure everything is clear to you before signing.5. Inspect the property and get a receipt for the security depositSecurity deposits are a standard requirement in tenancy contracts in Dubai, and typically range from two- to six-months’ rent. According to Article 20 of Law No. 26 of 2007 Regulating the Relationship Between Landlords and Tenants in the Emirate of Dubai:Tenants may provide security to landlords for property maintenance.Landlords may retain necessary portions to cover legitimate maintenance costs.Retention must be justified and proportionate to actual expenses.Matta explained further: “A security deposit is commonly required and is generally refundable at the end of the tenancy, subject to deductions for damage beyond normal wear and tear. Tenants should obtain a receipt and document the property's condition, preferably with photographs and videos, at handover.”Walk through the property and conduct your own inspection. Snap pictures of damaged spots, scratches and stains and date them – this protects your security deposit later. You can also verify other aspects during inspection, such as if pest control is needed, if the water pressure is adequate, if the air conditioning is working, and if the appliances are operational.Tenants are entitled to a full return of the security deposit when they have fulfilled all contractual obligations. If the landlord does deduct from the security deposit, you are entitled to a written explanation of any deductions, along with supporting evidence.6. Clearly spell out maintenance obligationsUnder Article 16 of Law No. 26 of 2007, landlords are legally responsible for maintenance and repairs. The law states: “The landlord is primarily responsible for maintenance works and the repair of any breakdown, defect, or damage that affects the tenant’s ability to use the property as intended.”That said, the law also allows both parties to agree otherwise in the tenancy contract. Usually, Ejari contracts in Dubai divide maintenance obligations into two categories – minor repairs (like cosmetic fixes below a set cost, changing lightbulbs, general upkeep of the property) and major repairs (like major plumbing and electrical work, structural repairs, air conditioning replacement). While minor repairs are handled by the tenant, the landlord is responsible for major repairs.Matta said: “The agreement should clearly specify which repairs and maintenance costs are the landlord's responsibility and which are the tenant's responsibility, including any monetary threshold for minor maintenance.”7. Check renewal and termination clausesHow to enter a lease is important, but it’s also vital to check exit rules before you commit to the property. This step saves you from penalties and unexpected costs.Law No. 26 of 2007, amended by Law No. 33 of 2008, states that if either the landlord or tenant wants to change contract terms or rent for the next lease period, they must give notice of at least 90 days before the current contract ends.This time period gives landlords the opportunity to review the market and decide if they want to raise the rent, while also giving enough time for tenants to plan their next move.It’s also worth checking whether the rental contract imposes penalties for terminating the lease early. Typically, the termination clause includes a penalty of one- or two-months’ rent for early exit.8. Register the tenancy with EjariTenants should ensure that the rental contract is registered with Ejari, as this is an important legal record of the tenancy, and is required for various government and utility services.In Dubai, if your contract isn’t registered with Ejari, it’s not valid – this means you will not be able to set up your electricity and water connection, renew your visa, or even defend yourself if you have a dispute with your landlord. So, make sure you complete this important step as early in the rental process as possible. Learn how to register Ejari.9. Do not rely on verbal promisesFinally, it’s important to ensure any negotiations or agreements you make with your landlord, are written down. This step protects both you and the landlord, and ensures there are no unpleasant surprises down the road.Matta said: “Any commitment made by the landlord or agent, particularly regarding repairs, modifications, furnishing, maintenance or renewal terms, should be incorporated into the tenancy agreement or otherwise confirmed in writing.”
