Frequently Asked Questions
The costs involved in letting your property will consist of:
Inventory Check Report
An Inventory Check Report should be organized before a Tenant moves in as it’s very important you have evidence of your property’s condition before a Tenant moves in as the report will act as protection in case of disputes about the condition of the property when the Tenant vacates. The cost of the report varies on the size of property you have.
The Agency Fee is payable when a Tenant is introduced and agrees to rent your property. The fee is payable upon signing the Tenancy Contract. We charge a fee of 5% of the Annual Rent per annum or AED 4000 whichever is the greatest.
Ejari which stands for “My Rent” in Arabic is the new initiative of RERA to regulate the Rental Market of Dubai. This new system is part of Law Number 26 of 2007 which regulates the relationship between Landlords and Tenants. The Tenant must pay to register the Tenancy Contract with Ejari as per Article 22 of Law Number 26 of 2007.
Your Real Estate Agent should conduct all the viewings, some agencies tend to ask you to do it, however we do not. We like to justify our fees. It is also advisable to choose an Agency that is open for longer hours in order to maximize the number of viewings on your property. West Gate Real Estate is open 9am to 6pm, 6 days per week.
If your Real Estate Agent has all the keys and access codes for your property then it’s better for you not to attend as it’s proven that Tenants often feel more relaxed when the Landlord is not present for fear of saying something that might offend.
Ejari is the Regulatory Body for renting property in Dubai. All Tenancy Contracts have to be registered with Ejari in order for them to be legally binding. It is the responsibility of the Tenant to pay to register the Tenancy Contract as per Article 22 of the Law Number 26 of 2007. The Landlords Responsibility is to provide the Title Deed and his Passport Copy.
We have a variety of packages to suit all Landlords. The Property Management Fee is usually calculated as the 5% of the Annual Rent you receive for your property and is automatically renewed. Please contact us to discuss it’s Landlords Terms and Conditions of Business.
The price varies depending on the size of your property and your Real Estate Agent should be able to organize this on your behalf. We can organize and conduct an Inventory Check for you and will be for free should you choose to use our Property Management Service.
In order to successfully list your property to let with us we need copies of:
- Oqood Registration or Title Deed
- Copy of Passport
- The Keys for the property
In order to register your property simply click on the List Your Property form or call us on +97143927677 number.
There are many reasons why Investors should invest in the Dubai real estate market. The following are a few reasons:
Dubai is the financial and business hub of the Middle East.
Political and financial stability (the UAE Dirham has a fixed conversion rate to the US Dollar).
Excellent infrastructure, in a 21st century, multi-cultural and luxurious city by the enticing blue
waters of the Gulf.
The pre-eminent real estate market in the Middle East and North Africa region.
No stamp duty is payable when buying real estate. For supplies of residential property in the UAE, these will result in no imposition of VAT on the transaction on the basis that the supply is either “zero rated” or an “exempt supply”. For supplies of commercial properties in the UAE, the standard VAT rate of 5% will apply. For supplies of bare land in the UAE, these will result in no imposition of VAT on the transaction on the basis that the supply is an “exempt supply”.
No income tax or capital gains tax is payable when selling real estate.
High rental yield (between 6-8%).
No restrictions on currency trading or repatriation of funds.
Freehold ownership is available, as well as 99-year Leasehold ownership, in Designated
Foreign real estate Buyers, subject to meeting certain conditions, are entitled to a two-year
The UAE has signed double tax treaties with most major economies.
Served by well-established real estate laws and crucial concepts protecting investors,
including many new legal protections brought in after the 2008 credit crunch.
The legal protections include Escrow Accounts for purchase funds for Off-Plan (ie. not yet completed) real estate and Law 6 of 2019: On the Ownership of Common Property in the Emirate of Dubai that allows control of building maintenance by a management company which must be approved by RERA.
The Dubai Land Department (“DLD”) is responsible for regulating the real estate sector, as well as the registration of real estate purchases and transfers in the Oqood (Interim) Register
and the Real Estate Register.
Yes, Foreign Nationals may own property freehold in Dubai in Designated (Freehold) Areas. Those areas include, but are not limited to, Burj Khalifa, Business Bay, Emirates Hills, Jumeirah Lake Towers and Palm Jumeirah. Foreign ownership is also allowed in Dubai’s various Free Zones, for example the Dubai International Financial Centre.
In regards to the purchase of a completed property, the following laws protect Investors:
- Ownership of real estate is registered in the name of the Buyer at the DLD.
- Law 6 of 2019: On the Ownership of Common Property in the Emirate of Dubai, The management company approved by RERA controls the maintenance and management of Common Areas.
In regards to the purchase of an Off-Plan property, the following laws protect Investors:
- Funds paid by a Buyer towards the purchase of Off-Plan real estate are deposited in a government-regulated Escrow Account.
- Where a Developer has failed to start construction, or RERA feels that a Project is unlikely to be completed, RERA can cancel the Project. In the event of such cancellation, the Developer must provide all Buyers a refund. If the Developer fails to comply with this obligation, RERA may take whatever action is necessary to protect Buyer.
- The Dubai Courts have a Special Judicial Committee that focuses solely on cancelled projects and how the assets of the Escrow Account are liquidated and refunded to the Buyer, as well as dealing with any complaints against a Developer regarding the cancelled project.
- A Buyer has the right to seek termination of the contract (and a full refund) before the Dubai Courts, if a Developer is not performing its duties.
Below are a few ways for an Investor to do his due diligence in the purchase of a completed property:
- Although the Real Estate Register is not open to the public, the Buyer should obtain a photocopy of the title deed of the property from the Seller and use it to carry out an “Ownership Certification Validation” search on the DLD website to get confirmation whether there is a Mortgage over the real estate, and whether the Seller remains the owner of the real estate.
- Prior to signing the contract, the Buyer should consider carrying out a physical inspection of the real estate, and getting information from the Management Company about the Service Charges.
- If you are using a Broker, ensure that he/she is properly licensed by RERA, and that there is a written agreement detailing when and how much he/she is to be paid. A Broker’s commission is normally 2% of the purchase price.
- By law, the cost of transferring Title at DLD is 4% of the purchase price, split between Buyer and Seller at 2% each, unless otherwise agreed.
Below are a few ways for an Investor to do his due diligence in the purchase of an Off-Plan property:
- Information on the construction status of a Project and whether the Developer and the Project are registered is freely available on the DLD website at www.dubailand.gov.ae.
- Negotiate with the Developer to make changes to the standard contract, to ensure that the Buyer’s interests are protected. It is advisable to seek the assistance of a qualified legal consultant.
- When an Off-Plan property is purchased, the Buyer should ensure that the contract is registered in the Oqood (Interim) Register. Once the price is paid in full and the building is complete, the Buyer’s interest (as owner) should be registered in the Real Estate Register, and the Buyer should receive the Title Deed.
There are many companies that perform property management services, but many are not properly licensed. Beware of such companies. Be sure to ask for a copy of the company’s Trade License from the Dubai Department of Economic Development, as well as its approval from DLD.
In jointly owned properties, the management company raises funds for maintenance, repair, management and administrative costs of the Common Areas through service charges. Service charges are charged on a monthly or yearly basis. Before charging the Owners, the management company must get approval of the charges from the Real Estate Regulatory Agency. If an Owner fails to pay the service charges, the management company may file a lawsuit against the Owner for the unpaid balance of the charges, plus impose a 12% per annum penalty, calculated on a daily basis, until the paid in full.
The basics of real estate financing in Dubai are as follows:
- Real estate can only be mortgaged to a bank licensed by the UAE Central Bank.
- Financing can also be obtained from sources other than licensed banks. However, the Lender will not be able to register the loan at the DLD.
- The DLD’s fee for registering a new Mortgage is 0.25% of the loan amount. This is typically payable by the Buyer.
- To enforce a Mortgage, the Lender must obtain a Court Order allowing it to sell the real estate through Public Auction.
- Various types of Mortgage products (both Sharia-compliant and Conventional) are available.
All Dubai Courts registered POAs can be checked online as follows:
- Visit www.dubaicourts.gov.ae
- Go to the tab ‘public e- service’
- Inquiry about a document
- Document Type: ‘Authentication Register’
- Year: Year of registration
- Serial Number: Enter serial number of document
Lease Registration (Ejari)
Yes, all leases must be registered in the Dubai Land Department’s Ejari system.
Yes, there is a form that is required by the Ejari system; however, any additional terms may be attached to the standard form.
More information about Ejari registration can be found at www.ejari.ae
No, Subleases are not illegal in Dubai, however, Landlord’s written consent is required.
When Landlord consents to a Sublease, the Subtenant is protected from eviction,even if the original Tenant is evicted.
If Landlord discovers that there is a Subtenant whom he did not consent to, Landlord may serve Subtenant with a Notice of Eviction.
Yes, the Subtenant preserves his rights file a claim against the original Tenant in theRental Dispute Settlement Centre, for any damages due to the eviction.
No. A Landlord is free to determine the rent he wants to charge in the initial Lease term.
Yes, there are rent caps limits when renewing a Lease.
Renewal rent caps are determined based on the rent paid by Tenant in the initial Lease term, compared to the average similar rent of a unit with the same amount of bedrooms in the same area, as determined by the RERA Index.
If the Tenant was paying:
- 10% or less than the average similar rent – Landlord cannot increase the rent during the renewal period.
- 11-20% less than the average similar rent – Landlord may increase rent by up to 5%.
- 21-30% less than the average similar rent – Landlord may increase rent by up to 10%.
- 31-40% less than the average similar rent – Landlord may increase rent by up to 15%.
- Over 40% less than the average similar rent – Landlord may increase rent by up to 20%.
The calculator can be found on the Dubai Land Department’s website at www.dubailand.gov.ae (eServices).
Yes, notice of a rental increase must be given to a Tenant at least 90 days prior to theexpiration of the Lease term.
If the Landlord misses the 90 day notice deadline, he cannot increase the rent during the next renewal period.
Notice of the rental increase may be given formally (through Notary Public orRegistered Mail) or informally (email or letter), with proof of receipt.
No, the Notice does not require specific language. It can be as general as to say “There will be an increase of _____%, as per the RERA Index.”
If Landlord attempts to increase the rent beyond the legal limits, Tenant may file acomplaint with the Rental Dispute Settlement Centre.
Yes, the rent caps apply to the DIFC and all other Free Zones in Dubai.
No. Landlord cannot engage in “self-help” practices. Landlord must give Tenant proper notice to have him evicted for non-payment of rent.
30 days notice must be given for eviction based on non-payment of rent.
The Notice must be sent through Notary Public or Registered Mail.
Landlord may file his claim with the Rental Dispute Settlement Centre to enforce theeviction.
Landlord may serve an immediate Notice of Eviction to a Tenant using the property illegally or immorally.
Landlord may evict Tenant from the property with 12 months notice for the following reasons:
If the Landlord wants to sell the property;
If the Landlord wishes to use the property for his own personal use or for first degree kin (requires proof that Landlord has no other properties to live in);
If the property requires demolition or major renovation that cannot be completed while occupied by Tenant (requires Technical Report from Dubai Municipality).
Yes, 12 months notice is required in the above cases.
Yes, the Landlord has the burden to prove that:
He does not have any other property that can be used for that purpose; and
The property is fit for that purpose (eg. If it is a 1 bedroom apartment, he cannot live there with his wife and four children); and
If it is for use by his first degree kin, he must prove the relationship with birth certificates.
No, Landlord is not entitled to lease the property again for 2 years (3 years in commercial leases). A Tenant can claim compensation if the premises is leased before the expiration of that time period. The property will also be blocked from being registered on Ejari.
Yes, if Landlord changes his mind about the reason for eviction, he must give a new 12 month notice from the date of the change.
No, a non-renewable clause is not enforceable.
Yes, Tenant has an automatic right of renewal of Lease, if Landlord cannot legally evict Tenant.
Rental Dispute Settlement Centre Procedure
Yes, the RDSC has a helpline at 800-4488.
The party filing a complaint (Plaintiff) must:
- Go to Rental Dispute Committee with the following:
o ORIGINAL Lease (or a copy of Lease and a faxed request to Landlord for the original with a fax transmission receipt);
o Ejari registration
o Proof of payment of rent (cheques); o Copies of Title Deed and Passport; o Power of Attorney (if applicable).
- Pay the fee – 3.5% of Lease value (500 AED minimum – 20,000 AED maximum);
- Fill out application and claim form.
The RDSC attempts to settle all claims within 75 days, through the various departments:
The Arbitration & Reconciliation Department will try to settle disputes amicably within 15 days;
If not successful, a lawsuit has to be lodged with the Department of First Instance, which will try to settle the dispute within 30 days with ruling;
If parties are not happy with the ruling by the Department of First Instance the Department of Appeal will issue a final verdict within 30 days (only on cases where the disputed value is over 100,000 AED and other conditions exist – 15% of the disputed value will be paid as a fee).
Landlord-Tenant Obligations and Security Deposit
No alteration to the premises or its services (for example utilities or facilities). If so, Landlord will be liable for any damage caused, faults or shortages to the premises.
On handover the Landlord must provide the premises to the Tenant in good condition, that enables the Tenant to occupy and enjoy the premises.
Landlord is responsible for maintaining the premises and must rectify any defects or faults that affect the Tenant’s right of occupation and enjoyment.
Landlord prohibited to disconnect services or to obstruct the Tenant from occupying the premises for their quiet enjoyment and use. If so, Tenant has the right to file a Police Report, in addition to filing a case with the Rental Dispute Settlement Centre (RDC).
Pay the rent on the due dates.
Pay Security Deposit to guarantee and/or cover the condition of the premises at the end of Lease.
No alterations, renovations or performing maintenance work without the Landlord’s permission and, if required, any approval from relevant authorities.
Return the premises to the Landlord in good condition, with only reasonable wear and tear. Any dispute over the condition decided upon by the Rental Dispute Settlement Centre, if no agreement is reached.
Pay all fees and taxes due for to the utility authorities that benefit the premises, unless otherwise agreed.
Not remove any fixtures, unless agreed otherwise by both Landlord and Tenant.
Not assign the benefit to sublease the premises, without obtaining the Landlord’s written consent.
An amount of money paid in advance.
Held in reserve.
In the event that Tenant fails on a contractual obligation (under the Lease).
Covers a default under the Lease which results in:
Loss of rent
Damage to the premises
Lost security keys
Repairs that are not wear and tear
Not considered rent
Wear and Tear
Damage to property that results from ordinary use of an item.
Does not involve damage caused intentionally to that item.
Landlord cannot expect to lease out a property that returns in the exact same condition.