Perhaps signing a tenancy agreement is much more fun than moving into your perfect rental home. It is this piece of paper that allows you to move into your new rental space and take a breath of relief.
But you need to be careful before signing the rental lease agreement in Dubai. There are certain factors that need to be checked before you can confirm that the rental space is all yours – for a specific time – and that the negotiations with the landlord are finalized.
To help you avoid any unforeseeable scenarios in the future, here is a guide related to rental lease agreement in Dubai and how you can check which boxes were and which were not.
What is Included in Rental Lease Agreement in Dubai?
The rental lease agreement in Dubai requires a few general clauses that should be included in the tenancy agreement, any special conditions, and agreements between both parties. Here are a few factors to consider:
- Check Landlord’s Background
Prior to signing the rental lease agreement in Dubai, make an effective check on the landlord’s rental history. This will help identify any warning signs against the landlord such as bankruptcy, lawsuit pending on the property or a tax lien so that one does not face any future issues.
Carefully verify the spelling of the name on the title deed and on the passport or Emirates ID to ascertain the person signing the agreement is actually the property owner. As a tenant in Dubai, require a Rental Good Conduct Certificate from DLD provided by the landlord.
2. Request Evidence of Paid Bills
Pending bills may be managed by restricting the usage of common areas and building facilities for tenants by building authorities. Thus, one must ensure that all the maintenance and other charges have been paid by the landlord. If you partner with a property management company in Dubai, you won’t have to worry about asking for hard copy evidence of cleared bills is suggested to avoid any future legal problems.
3. Inspect the Property Personally
It is advisable not to proceed on the basis of photos or videos of the property shown by the agent or owner. Take a trip to the property and carefully inspect its physical state. Ensure that all the amenities that you are paying for are in working condition. If, if at all, any of it needs to be repaired, ask the landlord to get it repaired prior to signing the contract.
4. Check Property Listing
Log onto an authentic Dubai real estate broker website in the region renowned for authentic property postings. Verify if the property for lease in UAE exists or not using the validated property listings in the portal.
5. Carefully Read the Contract
The landlords as well as tenants are legally bound to fulfill the conditions and terms made in the tenancy agreement. This is reading the contract on paper carefully in an easily readable and clear font. Look for the implied conditions that are mentioned in the contract but you have not agreed to them. Additionally, be cautious about Asterisk (∗), smaller fonts or footnotes to avoid agreeing to a condition that does not favor you.
6. Get Everything in Written
Once you have thoroughly read the contract, ensure it includes all terms and conditions that you have settled with the landlord. Never rely on word of mouth with the owner as it has no legal implications. A trustworthy real estate broker in Dubai will help you identify any such loopholes and avoid problems.
7. Talk About Damage and Repair Fees
Over maintenance and repairs is the most critical aspect of the checklist in tenancy agreements. By law, building maintenance and repairs are the responsibility of the landlord until a mutually agreed plan. If the repair is to be done solely by the landlord, discuss how the repair would be performed, who would cover and who would monitor the property in case of maintenance.
This is because, in some cases, landlords ask tenants to maintain the building and recover the costs from the annual rent. That aside, in a good landlord-tenant relationship, it is recommended that maintenance issues be addressed prior to signing the agreement.
8. Negotiate Rent and Mode of Payment
Rent in UAE is pre-paid through a post-dated cheque or otherwise, as both parties find appropriate. The post-dated cheques’ period differs according to the arrangement between the two parties. Negotiate the post-dated cheques’ period and the yearly rent, as in case of delay, the tenants will have to suffer the penalty. The best real estate agency Dubai will do so on your behalf.
9. Discuss Over Pre-Early Contract Cancellation
The law of property demands both to complete the period of the agreement, and one cannot terminate it without the consent of another. Accord on the terms that automatically lead to cancellation of the agreement.
If you are a regular visitor or unsure of your stay length in the rented accommodation, it is better to utilize short-term rentals. The UAE short-term rentals enable the tenants to move in and out at their convenience without the constraint of signing a contract. Furthermore, if you want to leave premises before the completion of the contract term, early termination of the tenancy agreement in Dubai can assist you throughout the process.
10. Insurance Needs
Prior to signing a rental lease, both landlords and tenants must understand their insurance needs. Tenants typically are requested by landlords to acquire renter’s insurance, which covers personal property and liability. Tenants will also be required to have damage or injury liability insurance within the rental property.
Landlords tend to have insurance on the building, but not on personal property of the tenants. Both parties need to go through their insurance policies to have sufficient coverage and know about any exclusions. Evidence of insurance can be demanded from the tenants prior to finalizing the lease.