Tips for expats renting in Dubai for the first time

Just landed in the city of opportunities?

Renting a property is usually the best choice for new residents as it gives them time to explore different communities until they find the best place before buying a property. Luckily, there is no shortage of exceptional rental properties in the city!

Finding the perfect home to rent in Dubai can be an exciting experience, but it can seem a bit challenging if you’re not sure where to start looking or what the rules of renting are. So, to help you navigate this journey, we’ll help…

Looking into - Essential information for new expats on the Dubai rental market

Moving to Dubai can be an exciting adventure, but navigating the rental market as an expat can be a bit overwhelming.

The first thing to know is that Dubai's rental market is diverse, offering everything from luxurious high-rise apartments to family-friendly villas, so the choice of area will greatly impact your experience, hence it's crucial to do your research.

As an expat you might want to look at the popular central areas, as this will help you connect with like-minded folks and make friends faster. These areas include Dubai Marina, Downtown Dubai, and Jumeirah Lakes Towers. If you prefer quieter areas, suburban communities like Arabian Ranches, DAMAC Hills, Town Square and Al Furjan cater to families.

The next thing to know is that rent in Dubai is typically paid annually, though some landlords may offer more flexible monthly or quarterly payment plans.

There are two payment methods, the traditional being cheque payment as an option and then there is also a direct debit system, which means you can transfer the rent through your bank account.

However, before choosing a payment option, be prepared to review the rental contract carefully, ensuring you understand all terms, especially regarding maintenance responsibilities and lease renewal conditions - as price fluctuations can happen.

Comparing prices and choosing the right community

Last month, RERA announced their newest index which helps landlords and tenants understand the rental market more accurately. Landlords using this index can easily calculate how much they are eligible to increase their rental prices, whereas tenants can easily understand what fluctuations can come about in their rental prices.

As someone who is currently looking into the rental market, what helps is to look at the Allsopp & Allsopp DataHub - which shows you real-time prices and transactions that have taken place in the market over the last 180 days, updated every 15 minutes.

You can compare and understand what community has what range in terms of pricing. Plus, this understanding will help you choose wisely without losing too much time.

Laws, regulations and fees

When renting a property in Dubai for the first time, it's essential to be aware of the specific laws, regulations, and fees that govern the process. Here's a breakdown of what you should know:

1. Rental laws

Tenancy Contract: Dubai tenancy contracts are governed by Law No. 26 of 2007, as amended by Law No. 33 of 2008. The contract must be registered with the Ejari system by any and all means otherwise your rental isn’t valid. This ensures that the agreement is recognised by the Dubai Land Department (DLD).

Tenancy Duration: The standard lease duration is one year. Any changes to the tenancy contract or early termination terms should be explicitly stated in the tenancy contract.

Rent Increase: The Dubai RERA Index regulates rent increases. Landlords can only increase rent based on the index and must provide a 90-day notice before the lease renewal. Even tenants can predict upcoming rental rises through this platform.

Dispute Resolution: If you have a dispute to file against your landlord or tenant, The Rental Disputes Settlement Centre handles disputes between tenants and landlords. If a disagreement arises, both parties can file a case with the RDSC who will then help both parties.

2. Understanding the security deposit

A security deposit is needed when processing a rental transaction and for this, you need to typically pay 5% of the annual rent for unfurnished properties and 10% for furnished ones. This deposit is refundable at the end of the tenancy, provided there are no damages or unpaid dues.

3. Agency fees

If you use a real estate agent, you can expect to pay an agency fee which is usually 5% of the annual rent. This fee covers the agent's services in finding the property and handling paperwork.

Agency fees also include your Ejari Registration because this is something they can take care of for you:

Fee: AED 220 Purpose: Registering the tenancy contract with Ejari is mandatory. It ensures legal recognition and is required for various services, including setting up utilities.

4. DEWA (Dubai Electricity and Water Authority) Fees

In Dubai, DEWA, the Dubai Electricity and Water Authority is the main source for electricity and water services at home so you need to subscribe to them and pay bills monthly.

Security deposit: AED 2,000 for apartments and AED 4,000 for villas. Activation fee: AED 110 for setting up the account. Tenants must register with DEWA to activate water and electricity services.

Short-term vs. long-term?

When it comes to renting, you might also want to look into options regarding short-term rentals and long-term rentals.

When choosing between short-term and long-term rentals in Dubai, it's important to understand the key differences in terms of regulations, costs, and suitability for your needs.

Here’s a breakdown:

1. Duration

Short-Term Rentals:

 - Typically rented for periods ranging from a few days to several months.
 - Ideal for tourists, business travellers, or those in Dubai temporarily.

Long-Term Rentals:

 - Leases are generally for one year or more.
 - Suitable for residents or those planning to stay in Dubai for an extended period.

2. Legal regulations

Short-Term Rentals:

 - Must be licensed by the Dubai Department of Tourism and Commerce Marketing (DTCM).
 - Landlords must comply with DTCM regulations, including paying a tourism fee.

Long-Term Rentals:

 - Governed by Dubai's tenancy laws under the Real Estate Regulatory Agency (RERA).
 - Requires registration with Ejari, ensuring the tenancy contract is legally recognised.

3. Costs

Short-Term Rentals:

 - Higher per-night cost compared to long-term leases.
 - Often includes utilities, internet, and sometimes cleaning services.

Long-Term Rentals:

 - Lower monthly rent compared to short-term leases.
 - Tenants usually pay separately for utilities, DEWA, and other associated costs.

4. Flexibility

Short-Term Rentals:

 - Offers more flexibility with easy move-in and move-out terms.
 - No long-term commitment, suitable for those uncertain about their length of stay.

Long-Term Rentals:

 - Requires a commitment, usually for a year.
 - Less flexibility if you need to break the lease early, potentially leading to penalties.

5. Furnishing

Short-Term Rentals:

 - Usually fully furnished, including all essentials like kitchenware and linens.
 - Turnkey solutions, ready to move in with minimal hassle.

Long-Term Rentals:

 - Can be furnished or unfurnished, depending on the property.
 - Tenants may need to purchase or bring their own furniture and appliances.

6. Suitability

Short-Term Rentals:

 - Best for temporary stays, such as holidays, business trips, or short-term assignments.
 - Ideal for those who prefer the convenience of a hotel-like experience.

Long-Term Rentals:

 - Suitable for those looking to establish a more permanent residence.
 - Better for families, professionals, and those planning to live in Dubai for an extended period.

7. Community and Lifestyle

Short-Term Rentals:

 - Often located in tourist-friendly areas, with access to amenities like pools, gyms, and concierge services.

Long-Term Rentals:

 - Available in a wide range of communities, from suburban neighbourhoods to urban centres, offering more variety in lifestyle and community integration.

Understanding these differences can help you decide which option best suits your needs when you come to Dubai and are hunting for homes.

What are the must-know apps and portals when house-hunting?

Dubai is a tech-savvy city, and there are several apps and online portals that can make your rental search easier.

Allsopp & Allsopp, Property Finder and Bayut are the most popular property portals, offering extensive listings of available apartments, villas, and townhouses across the city. These platforms allow you to filter properties by price, location, and amenities, making it easier to find something that suits your needs - plus they all have mobile applications so you can house-hunt on the go.

For managing your tenancy, Dubai REST is an essential app to have. This government-backed platform allows you to view and manage your Ejari, a legal document required for all rental agreements in Dubai. It also provides access to information about your property and landlord which is crucial in ensuring transparency.

Apart from apps used for your rental agreements, there are several other useful apps that you may need if you are moving to Dubai for the first time. For example, the RTA Dubai app, which helps you navigate the city's public transportation system is essential for those relying on public transport or planning to move to areas less central. Plus, Careem is great to have on board if you like to use taxis.

Cultural considerations to look into as an expat in Dubai

Dubai is a melting pot of cultures, and it’s a great place to come expand your network with other cultures. But it’s essential to respect the local customs and laws. For instance, while Dubai is generally tolerant, it’s crucial to understand that behaviour that might be considered acceptable elsewhere could be frowned upon here.

For example, public displays of affection are discouraged, and it’s important to be mindful of noise levels, particularly during late hours or religious periods like Ramadan.

Finding a supportive expat community

Finding a sense of community is crucial for expats adjusting to life in Dubai. This could just be through Facebook or Instagram groups which plan weekly meet-ups or social events.

Many residential areas are designed with community living in mind, offering amenities like swimming pools, gyms, and communal gardens that encourage social interaction among residents. To build connections, consider joining community groups or attending events in your area. Social media platforms like Facebook and Meetup are great for finding expat groups, ranging from parenting to fitness to hobby-specific clubs.

Additionally, many communities in Dubai host regular events, such as markets, fitness classes, and social gatherings, making it easier to meet neighbours and make friends. Living in a community-oriented area can greatly enhance your experience as an expat, providing support and companionship in a new city.

Hope this was helpful!

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