May 2, 2019

5 legal tips every tenant should know

Dubai is regarded as the land of immense opportunities. As a result, this desert oasis attracts a huge number of expatriates to live and work. Since there are numerous real estate projects in Dubai such as the Emaar Beachfront apartments & the City Walk apartments, you are guaranteed to find a place that suits your needs. As a tenant, it is very important to get a good understanding of your rights and responsibilities.
Here are some of the legal tips you should know

i.             Real estate agencies
According to the Dubai real estate laws, all agents and agencies must be registered with the Real Estate Regulatory Authority (RERA). If you are dealing with an agency or agent that is not registered, chances are you are being conned by fraudsters. It is always advisable to check and verify whether your broker is registered before giving out your money.

ii.            Cost involved
It is important to know the extra cost involved above the normal rent. In most cases, rent in Dubai is paid using post-dated cheques. This means that the rent is paid a whole year in advance. On top of the rent, you will have to give a refundable maintenance deposit which 5% of the rent amount. Also, you will be required to set up a DEWA account at the cost of AED 2000 for apartments and AED 4000 for villas.

iii.           Condition of the property
The landlord is required by law to hand over the property in a working condition. Therefore, it is advisable to ensure the property is in good condition before moving in. Since most properties are rented before setting up the DEWA account, it is important that your contract has a clause that allows you a few days to check whether the water systems are working correctly. 

iv.          Rental increase
In Dubai, landlords do not have the liberty of increasing the rent anyhow or as they wish. Any increase in rent is regulated by the rental increase calculator. So, rent can only be increased by the amount stipulated by the calculator. Nevertheless, rent cannot be increased by more than 20% no matter the market conditions.

v.            Eviction
Landlords are allowed to evict the tenant before the expiry of the tenancy period only under the following circumstances.
·         If the tenant fails to pay rent on the agreed time.
·         If the tenant subleases the property to a third party with the approval of the landlord.
·         If the tenant uses or allows the property for illegal and immoral activities.
·         If the tenant uses the property for purposes not stipulated in the contract.

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