26 December 2013| Last updated on 12 February 2017
Renting in Dubai
There is no doubt that the Emirate is notorious for high rental prices in some areas, but with the right guidance and area, you might just find your perfect haven in the city!
Information on RERA, The Rent Comittee, Ejari & The Rental Increase Calculator
The Real Estate Regulatory Agency was established as a result of a law issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, in 2007. Supported by the Dubai Land Department, RERA plays a key and executive role in the regulation of Dubai’s real estate scene. Despite being a young entity and with the help of a qualified national staff, the RERA has managed to register all real estate development and brokerage companies in the emirate.
An arm of the Dubai Land Department, RERA is responsible for regulating the real estate sector, helping in formulating sector’s strategies, regulating the activities of companies that manage residential compounds, as well as the activities of real estate brokers and the Owners Associations. The Agency also issues the rules and regulations that qualify activities of brokerage, lease contract registration and certification, as well as issues license for real estate development entities.
In order to do this, RERA has set a legislative framework that regulates the relation between the different contractual parties, guaranteeing their rights and establishing their duties and commitments through legislations in force. Precise mechanisms and regulations were put in place to regulate investment activities in the sector in the way that achieves highest returns. RERA made sure its staff are adequately qualified and trained to provide efficient and expert services, and is keen on monitoring all development projects on a financial and technical level in order to protect the wider interests of the market and investors alike.
EJARI means ‘My Rent’ in Arabic.
Ejari is a system that is governed by RERA to make registration of rental / lease agreements easy and accessible to Owners and Real Estate Management Companies of various categories. The Ejari system provides a full portfolio of services beyond registering the initial lease agreement. Renewals, cancellations, transfers and terminations can all be logged.
EJARI is the new initiative of RERA to regulate and facilitate the Rental Market of Dubai. This is a new system that will make provisions of Law No. 26 of 2007 effective that is regulating the relationship between Landlords and Tenants in Dubai. This will require all individuals and companies acting as landlords to register tenancy agreements using EJARI.
RERA has announced that with the effect of 14 March 2010, all rental / lease contracts for Dubai properties must be registered through its new EJARI online portal. The EJARI electronic registration web service is designed to meet the requirements of the law and RERA’s vision and mission to establish a robust regulatory system for the rental market and protect the rights of everyone involved. .
Its state-of-the-art online registration system offers full protection of their rights to all parties with tenancy agreement. It ensures these rights are recognized, upheld, and enforced by all Government agencies. It establishes full transparency between landlord and tenant, fully integrates rental contracts into the legal framework and opens up the possibility of being able to revise these contracts seamlessly in the event of disputes .
The Ejari system provides a full portfolio of services beyond registering the initial lease agreement. Renewals, cancellations, transfers and terminations can all be logged. Ejari will ensure rental agreements are fair and transparent to the parties involved and that their terms and conditions are given full weight .
How it works?
Registration through Ejari is a simple process requiring little technical knowledge and that only the basic details of agreements are entered. These include information such as details of the property, the name of the rental company, and terms of the agreement. Once the agreement is entered into the system and registered it is allocated a unique barcode which acts as its reference throughout the life of the contract. RERA will keep its own record of the agreement and update changes to the register as these occur.
Rent Increase Calculator
There is a really handy Rent Increase Calculator on the Dubai Land Department Website to help you see if your rent is should be increased or not. It is based on average values of rental property in the area you select.
The Dubai Rent Index
The Dubai rent index was established in accordance with Law No (62) for the year 2011, where RERA would create the index and review it for regular update.
The index is a guiding tool to determine rentals for various properties of various uses in all areas of Dubai. The index is referred to in cases of disputes between tenants and landlords regarding determination of rent increase caps, with coordination among RERA and the special judiciary committee to resolve disputes between tenants and landlords for this issue.
The Rent Comittee
If either tenant or landlord has a dispute over rent, which cannot be negotiated themselves, the legal option is to bring the case to Dubai Municipality’s Rent Committee (DMRC). DMRC is authorized by Dubai Government for jurisdiction over the Courts in all rent related matters. Their decisions are final and binding and cannot be appealed at Dubai Courts.
In order to file a dispute with DMRC, you must first ensure that your rent contract is registered with RERA.
As the plaintiff, you will need to physically file a case with DMRC, though you may be required to give your oral petition at a later date, followed by a hearing. The written judgement follows.
DMRC Fees & Documents
Plaintiff to pay 3.5% of annual rent with a minimum of AED 350 and a maximum ceiling of AED 20,000
Other fees may be levied by DMRC on plaintiff for summoning experts, payment of expert’s fee, fee for deposit of rent with DMRC etc
You may have to separately pay for a newspaper advertisement in a local newspaper, in case the defendant fails to show up for a committee hearing.
The plaintiff will also need to submit:
Plaintiff name with designation (either lessor, lessee, landlord or occupant) with current address
The facts of the dispute
Original tenancy contract
Notarized PoA (Power of Attorney) in favour of person authorized to represent the plaintiff
Copies of cheques, if any, that were submitted to the landlord.
(Note:For plaintiffs who are tenants, but cannot submit the original tenancy contract with the new rent terms, due to refusal from the landlord; you can fax a request to the landlord and submit the fax receipt as proof to DMRC.)
Location of DMRC
Dubai Municipality Rent Committee
Third Floor, Dubai Municipality Building
Baniyas Road, Al Rigga, Deira,