Expats' Rental Guide: Move To UAE Smoothly

by Ashas Bukhari

Expats' Rental Guide: Move To UAE Smoothly

15 Mar 2024

The UAE is a bustling, vibrant country, which caters to millions of tourists and expats every year. If you are planning to move to any of the seven Emirates and have no idea what to do and where to begin, this guide will have everything you need to get to your new home as quickly and painlessly as possible.

An overview of the real estate sector

Renting apartments is a popular choice in the UAE, with people coming and going by the millions annually. Real estate is always in demand, and developers are busy constructing newer projects to cater to everyone. To give you an overview, tenancy laws can vary from Emirate to Emirate, each having its own regulatory framework. Dubai, for instance, has the Real Estate Regulatory Authority (RERA). Abu Dhabi has its own version of the RERA that falls under the Emirate’s Department of Municipal Affairs and Transport, and Sharjah has the Real Estate Registration Department (RERD). The functions of these government bodies are similar, though some of the laws will vary.

Functions of the regulatory authorities

You might be tempted to skip to the fun part of actually finding your property, but bear with us, because this is worth knowing. Understanding how rental properties work means that you will not be blindsided by scary sounding terms like "DEWA" and "Ejari".

The RERA was established to keep the real estate markets of Dubai and Abu Dhabi transparent, combat inflation, and protect investors, developers, buyers, tenants, and property owners alike. It oversees several critical functions within the real estate sector in the region. One of its primary responsibilities involves licensing real estate brokers, developers, and service providers. This process is meticulously executed to ensure that professionals operating within the real estate market are qualified and competent. Furthermore, RERA is tasked with registering various real estate transactions, including sales and leases. This systematic registration aids in establishing a transparent public record, simplifying the verification of ownership and the resolution of potential disputes. Additionally, RERA plays a vital role in dispute resolution, mediating conflicts among buyers, sellers, and developers through methods such as mediation, arbitration, and legal proceedings when necessary.

Moreover, RERA extends its services to landlords and tenants, offering assistance with the registration and renewal of Ejari Contracts, cancellation of Ejari Contracts, and property lease valuation. In its commitment to fostering a well-informed real estate market, RERA actively engages in educational initiatives. Through these efforts, businesses and individuals in the real estate sector gain a better understanding of their rights and responsibilities. By promoting awareness and education, RERA contributes to creating a more equitable and informed real estate environment for all stakeholders involved.

Ejari system

The online system known as "Ejari" serves as a platform for registering rental contracts, ensuring adherence to legal regulations, and facilitating dispute resolution within the real estate sector. As mandated by Article 4 of Law (33) of 2008, all rental agreements initiated by either landlords or tenants must be registered with the Real Estate Regulatory Agency (RERA) through the "Ejari" system. This requirement is implemented to guarantee that each property is leased individually, thereby preventing conflicts arising from dual leasing arrangements and safeguarding the rights of all parties involved.

Step-by-step instructions for renting in Dubai

Step 1 — Assess your budget and needs. It is clear, but we are unable to bring it up: before diving into the rental process, take some time to evaluate your financial situation and housing requirements. Consider factors such as your monthly budget, desired location, amenities, and space needed. In Dubai, renting typically involves post-dated cheques for the lease term, with the number of cheques varying from 1 to 12. Keep in mind that landlords may offer better deals for tenants who opt for fewer cheques. Additionally, gather essential documents like passport copies, visa details, Emirates ID (front and back), and a chequebook, as these will be required during the renting process.

Don't overlook these additional costs when budgeting for your new rental:

— Ejari fees: 220 AED.

— Security deposit: 5 per cent to 10 per cent of rent.

— Moving fees.These vary based on the property and bedroom type and depend on the moving agency you choose.

— Agency fee. Typically falls between 5 per cent to 8 per cent of the first annual rent.

— DEWA fees. 130 AED non-refundable connection (activation fee), along with a refundable deposit of 2,000 AED for apartments or 4,000 AED for villas. If your residency visa is pending, you can provide a letter from your company to the agent confirming that your visa is in process, so they can communicate this to the landlord.

Step 2 — Search for the right home. Once you have a clear understanding of your budget and preferences, start your search for the perfect rental property. Seek recommendations from friends, family, and colleagues, and explore online platforms and listings. Consider various factors such as the neighbourhood, property type (apartment, villa, etc.), proximity to amenities and transportation, and overall community vibe. It is also helpful to enlist the assistance of an experienced real estate agent who can guide you through the process and provide expert advice on available properties that align with your criteria.

Step 3 — Schedule property viewings. After compiling a list of potential properties, it is time to schedule viewings. Coordinate with your real estate agent to arrange appointments to tour each property in person. During the viewings, pay close attention to details such as the condition of the property, amenities, neighbourhood surroundings, and any potential maintenance issues. Avoid viewing the same property with multiple brokers to prevent confusion and ensure a smooth negotiation process later on.

Step 4 — Making an offer. Once you have found a property that meets your requirements, it is time to make an offer. This stage involves negotiating key terms of the lease agreement with the landlord or their representative. Discuss factors such as the monthly rent amount, number of cheques, lease duration, and security deposit. Be prepared to negotiate and be flexible to reach a mutually beneficial agreement for both parties.

Step 5 — Agree on rent terms. After negotiations, finalize the terms of the tenancy contract. Ensure that all agreed-upon terms are clearly outlined in the contract, including rent amount, payment schedule, lease duration, and any additional clauses or conditions. Typically, landlords require a security deposit, which is refundable at the end of the tenancy, usually amounting to 5% for unfurnished properties and 10% for furnished ones.

Step 6 — Signing the contracts. Once both parties have agreed on the terms, it is time to sign the tenancy contract. Review the contract carefully to ensure that all terms are accurately reflected and understood by both parties. Once signed, submit the required rent cheques and agency commissions as per the agreed-upon terms. Ensure that the cheques are issued in the exact name stated on the property title deed to avoid any complications.

Step 7 — Ejari registration. In Dubai, it is mandatory to register the tenancy contract with the Ejari system. This registration process helps establish a legal record of the lease agreement and is essential for visa renewals and other administrative purposes. Gather the necessary documents, including the original tenancy contract, title deed, and copies of passports and Emirates IDs for both tenant and landlord, and proceed with the Ejari registration process.

Step 8 — Connecting DEWA. To ensure seamless utility services, such as electricity and water, you will need to connect with the Dubai Electricity & Water Authority (DEWA). Submit the required documents, including passport copies, DEWA form, and setup fee, to initiate the connection process. Upon completion, you will receive your DEWA account number and activation details, allowing you to access utility services in your rented property.

Prepare to Move In: With the administrative tasks completed, it is time to prepare for your move-in day. If required by the developer, obtain a No Objection Certificate (NOC) for the move-in process. Coordinate with your chosen moving company to schedule the move and ensure a smooth transition. Before moving in, conduct a thorough inspection of the property to identify any existing issues or damages. Document these observations and communicate them with your landlord or property manager to address any necessary repairs or maintenance tasks. Finally, ensure that the property is clean and habitable before settling in, and familiarise yourself with any rules or regulations provided by the landlord or homeowners' association.

If you need help finding properties and reaching out to a real estate agent, check out our article on the best apps to help you find your ideal home.

by Ashas Bukhari