Becoming a Landlord in Dubai – the Espace Guide

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If you’re thinking of becoming a landlord in Dubai, then you’re entering into what should be a good economic deal. Rental yields are approximately 7% in Dubai on average, compared to just half that amount in places like London or Paris.

So long as you respect the law, it should be a largely positive experience. However, there are some things you need to know in advance – and we’re here to help.

Finding a tenant & marketing your property

Naturally, you should only use a reputable Dubai Real Estate Agent who is registered with the Dubai Land Department and has a valid ORN number and RERA number. Such as Espace, for example.

Your agent will help you assess the market rate and market your rental property for a competitive price. They’ll also know about activity in your area and what kind of tenant you should be looking for.

Your agent will also help you through the leasing process. It is important to check your tenant – do any background checks you can and obtain references.

Respecting the law

You’ll need to ensure that you are acting in accordance with the law. You should have a contract drawn up between yourself and your tenant which outlines who is responsible for what – e.g. maintenance, service repairs, rental collections.

These contracts need to be registered through Ejari. Ejari is the online rental regulation system created by RERA, the Real Estate Regulatory Agency. They will keep the contract on file for the duration of the tenancy, and it cannot be altered without a 90-day notice in writing and agreement from both parties.

When you have a tenant in place, you must keep the property in a safe condition and make sure that the property is maintained.

If you want to increase the rent during the tenancy, you may be eligible to do so. Check with RERA first, and remember that you must notify your tenant 90 days in advance. The calculation also has to be declared valid by the RERA Rental Calculator, which helps regulate rents.

Terminating tenancies

Should you wish to serve notice to your tenant, you can under very specific circumstances. Check with your agent as to what those circumstances might be. You would have to give one year’s notice to your tenant, and you’d have to notify the courts as well.

If you wish to sell your property while you have a tenant in place, you can sell – but the tenant has the right to stay in the property for the full duration of the tenancy agreement.

Thinking about buying a property in Dubai to rent out? Take a look at the communities we specialise in to see where the best location is for you as a landlord.

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