A refundable security deposit of 5% of the annual rent will be expected to be paid on Landlords acceptance of Tenants offer to lease. This security deposit which is held by the landlord and returned at the end of the term dependant on the condition of the property. You will need to pay your rent up front for the period of lease in the way of post-dated cheques depending on the terms of your agreement. Other costs will include 5% of the annual rent payable to the Agency for commission plus 5% VAT. You will also need to budget for the deposits required to be paid for connecting your utilities such as water, electricity, televisions etc. 5% VAT is payable on services provided and will be incurred on utility charges.
No. A residency visa is essential to rent in Dubai. If you are new to Dubai and your residence visa is under process then please speak to a Leasing Client Manager at Exclusive Links Real Estate and they can advise you.
If the tenancy agreement is being prepared in the name of an individual then you require your passport, residency visa and Emirates ID. If the tenancy agreement is being prepared in the name of a company then a company trade license, passport copy & visa of the company owner, passport and residence visa of the occupant/s. A salary certificate may be a further requirement to show acceptable income to cover the rental amount.
The landlord is responsible for paying any services fees relating to a property however as a tenant you are responsible to pay a municipality tax of 5% of the annual rent which is shown separately on your electricity bill (this is separate to the 5% VAT). You may be required to pay a contribution of the air conditioning fees if the property is not set up to meter each unit individually. In this case, the charges are normally made by the developer or owners association and not by a utility provider.
Typically a tenancy agreement is for a period of 12 months on a renewable basis.
Advance payments are usually made through post-dated cheques which are handed to the landlord, their authorised POA or their appointed management company on signing the tenancy agreement. Please ensure that you always have funds in your bank to clear post-dated cheques as bouncing cheques in Dubai is illegal.
Yes, there is a "Unified Tenancy Contract" which is mandatory and additional terms and conditions can be included in an Addendum to the Tenancy Contract. Please be sure to read the small print and understand each clause.
Unless previously agreed with the landlord in the Tenancy Agreement a tenant is not permitted to sublet the property and should comply with the rules of the UAE.
You are not permitted to make any changes without written permission from the landlord. This includes any painting, fixtures and fittings.
Rental prices are governed by the Rental Index issued by RERA (Real Estate Regulatory Agency) as set out in Decree 43 of 2013. Increases are allowed depending on the market rates and the current rent being significantly under the average rates. Please speak to Exclusive Links Real Estate to confirm the current regulations.
Unless there is a provision in your tenancy agreement for early termination it is subject to discussion and agreement between the landlord and the tenant. Otherwise, the term of the contract should be honoured by both Parties.
The landlord is responsible for general wear & tear of the property and any major replacements and repairs. The tenant is responsible for any breakages and any minor replacements and repairs. Further terms may be outlined in the Tenancy Contract.
Any agency fees are paid by the tenant so listing your property for rent with Exclusive Links Real Estate will not cost you any commission as the landlord. You must, however, prepare your property for occupancy which may include repainting or landscaping but one of our Leasing Client Managers can advise you on this when we appraise your property. All utility bills will need to be paid up to date before they can be transferred into a new tenants name and Tenant may be denied occupancy is any outstanding service charges due on the property.
Exclusive Links Real Estate do not charge to market your property for rent in both print and online media. As a leading real estate agency in Dubai prime positioning in newspapers and on online portals are assured.
Proof of ownership is required - a copy of Title Deed, passport and keys/ access to the property.
As a landlord, you can decide on the number of cheques you wish to collect over the duration of the lease. Flexibility on multiple cheques is more attractive and competitive. While it can range from one cheque for full annual rent up to 12 monthly, the majority of tenancy contracts are agreed on 3 - 4 instalments for one year period.
Once you have accepted an offer from a prospective tenant, an agreement known as a Tenancy Contract needs to be signed by both you and the tenant. This agreement highlights the terms and conditions. The tenant shall pay a security deposit of 5% of the value of the annual rental amount and should also provide post-dated cheques to you for the duration of the agreement.
Ejari stands for My Rent in Arabic and is the regulatory body for registration of lease contracts for property in Dubai. It is an initiative of RERA to regulate the rental market of Dubai and the relationship between the landlords and tenants and to make a tenancy contract legally binding. It is an online registration process but this can only be completed by Landlords and Management companies who have completed the Ejari training course. There is a cost of AED160 per tenancy agreement. Alternatively, there are external Ejari Offices (if online access is not available) that can also register the tenancy contracts and the charge is AED 195.
It is compulsory to register your tenancy and obtain the Ejari Certificate. Government departments including Dubai Courts and Rental Dispute Center will not assist with any tenancy related enquiries without producing this Certificate.
A prospective tenant may be more relaxed looking around a property if the owner is not present. Exclusive Links Real Estate will conduct all accompanied viewings on your property. We encourage landlords to trust us with the keys and access cards to maximise access and exposure of the property. We take responsibility of your keys very seriously and these are registered in and out of the office throughout the working day.
Exclusive Links Real Estate charges 8% of the annual rental price as an annual management fee. We provide effective and professional management services and solutions to protect your interests and your asset. Please see further details of our property management services on our website.
It is sometimes difficult to have maintenance issues dealt with on an ad-hoc basis as most maintenance companies prefer property owners to have an annual maintenance contract. This is the advantage of enlisting to our management services where Exclusive Links Real Estate can provide efficient and cost effective maintenance solutions to help ensure your property is well maintained.
Unless your property is managed by Exclusive Links Real Estate this is normally between the landlord and tenant. Consultation with your Leasing Client Manager can guide you on how best to manage this to ensure there is no disappointment at the end of a tenancy period.
For furnished properties, the market expectation is the tenant pays 10% of the annual rent or 1-month rent for refundable security deposit. This deposit is held by Landlord for the duration of the lease and refundable only at the time of vacating.
Enlisting the services of a commercial property broker increases the chance of selling or renting your property out quickly. This is a specialized segment of the business and the broker should not only have a thorough knowledge of your property in order to fully promote and market but potentially could have waiting customers or have access to potential clients to purchase or lease your property.
The laws regarding rent increases apply to both residential and commercial landlords with property in Dubai. The one main difference is that a commercial lease is likely to be negotiated for a 2-5 year term and whereas a residential lease is generally for 12 months.
Every business of every category must have a license to trade in Dubai. There are three categories of licenses Commercial, Professional and Industrial depending on your business activity.
These almost need to be done simultaneously as you will need a business address to apply for and secure a trade license.
Commercial Law, also known as Business Law and Corporate Law are the main bodies which govern business and commercial transactions in Dubai. In line with the countries vision and on par with international standards, the UAE offers a supportive and effective legal framework for businesses. The country has issued many initiative and platforms to encourage investment in the country.
The Dubai government established Tecom Investments FC LLC which launched Dubai Internet City in 2000. This remains a dedicated free zone area for the Information, Communication and Technologies sector and Dubai has now more than 20 Free Zones areas including Jebel Ali, Dubai Airport, DMCC located in JLT, Media & Knowledge City, Tecom, Silicon Oasis and Techno Park. All these areas are subject to their own FZ regulations and offer specific industry and mixed business licenses.
Exclusive Links works closely in partnership with preferred companies who specialize in the administration and process of new company setups. Please contact your commercial team to discuss the best referral for your business model.
You can own both commercial and residential property here in Dubai as an overseas investor. The complete property service offered by Exclusive Links can assist you with finding you the right tenant. We can also offer property management services and be your Property Manager on the ground in Dubai for continued support and peace of mind during a tenancy or vacant periods. Our specialized commercial division and the Exclusive Links Team will help you manage your investment.
An offshore company may own property or other assets in the UAE but may not partake in any business activities in the UAE. An on-shore company’s license permits the company to partake in the business activities listed on the license, within the area under the jurisdiction of the authority issuing the license.
Finance is available for commercial property in the same way as residential, providing you meet the required criteria. There are certain lenders more willing to lend on commercial property and through our preferred partner, Exclusive Links can put you in touch with the best mortgage to suit your requirements.
This depends on your business plan objectives. Renting a property would give you the flexibility of expansion, location and reducing liability. Purchasing your premises will protect you from rental increases, unexpected landlord demands and eviction. Your outlay of funds will be paying towards an asset instead of losing on the payable rent. These assets can also be rented out to a Tenant for potential income if required. All commercial sales and lease revenues are now subject to 5% VAT (effective from 1st Janaury 2018).
No, anyone can purchase property in Dubai across all designated freehold and leasehold developments either primary sales directly from the developers or in the secondary resale market.
Freehold properties are most commonly available when buying though Exclusive Links Real Estate. This is when you own the structure and land in perpetuity. However one might occasionally find a property for sale in a leasehold development which implies that a third party has an interest in the property, usually the land. Leasehold contracts are normally renewable after 99 years.
Often it is quite the opposite where properties available in the resale market are cheaper than if you were to purchase directly from a developer. Make sure you deal with a reputed and registered real estate brokerage firm like Exclusive Links Real Estate and make sure you are aware of your financial commitment and the structure of the sale before you buy. Minimum selling prices are often set by developers however individual sellers can transfer ownership and conclude on a sale at any reasonable & agreed sale price.
Exclusive Links Real Estate partner with preferred mortgage brokers who will guide you through the complete process and advise you on which lender or terms will suit your individual requirements and investment. Competitive rates and terms are available and linked to other more mature markets. Contact us today for a free assessment and qualifying information.
The standard minimum deposit is 10% of the purchase price, payable on signing the contract of sale. On secondary resale’s the balance payment is made on transfer of the ownership and dependent on the terms of the contract but usually 30 - 60 days later. On primary sales, there are staged payments made at regular intervals to the developers through to completion. Managers cheques are a must to ensure effective transfer, however, feel free to contact Exclusive Links Real Estate for the financial obligations on each project or purchase.
In general, due to our complete service and professional partners, purchases are extremely swift especially when there are no mortgages involved. Completion of a sale and transfer of ownership can be completed in as little as 2 weeks.
As the new owner, you inherit the tenant and the terms and conditions of the tenancy agreement. A prorated rent back figure can be calculated as part of the contract of sale and ensure that all future rental cheques are changed to your name as the new owner. The security deposit paid by the tenant to the landlord (Seller) at lease commencement also needs to be transferred to the new property owner whom will take over as the Landlord.
If you are not able to be in Dubai then a Power of Attorney (POA) can be used to buy property on your behalf. The person nominated by yourself cannot be employed by a Real Estate Agency in any capacity. The POA will need to be accredited both in the UAE Embassy located in the country where the delegation has been issued and again in the ministry of foreign affairs in the UAE. To arrange a POA from Dubai the process is quicker and more cost-effective but you have to be present in person in Dubai. Exclusive Links will guide you through this process when purchasing through our company.
Reasonable service charges are payable to all developers/ homeowners associations for maintenance, landscaping and refuse collection. This charge varies according to the development and is normally calculated on the built-up area of your home.
When buying on the resale market there will be a real estate agent commission that is paid to the broker handling your transaction and this is normally 2% of the purchase price or is charged as a minimum fixed amount. As a buyer, you will also be expected to pay a transfer of ownership fee to the Dubai Land Department (DLD) which is 4% of the purchase price. There is a set fee of AED 4000 payable to the Transfer Office that completes the formalities of the transfer. Both these costs can be split between the seller and buyer depending on the final negotiation of the sale. While there are no capital gains taxes, 5% VAT is applicable (effective from 1st January 2018) on agency commission and transfer office charges as the service providers. If your property is mortgaged you will expect to pay a further 0.25% of the value of the loan as mortgage registration however loans and mortgages are exempt from any tax.
The Dubai Government will issue 2 year renewable residence visa to property owners subject to conditions. For completed properties purchased over and above a value of AED 1,000,000, you can apply. The Property owner can sponsor additional family members including maid/driver. This residence visa does not permit you to work in Dubai. See www.dnrd.ae or www.amer.aeor contact [email protected] for assistance with application.
Exclusive Links Real Estate have the inside market knowledge to know which developments project the most substantial gains. Investors in Dubai enjoy high capital growth and rental yields of anywhere between 6-12% and together with the tax-free regime, makes Dubai a highly sought after property location. With Government initiatives and regulations to secure & protect the real estate industry along with the geographical position of the U.A.E attracting international investors, Dubai is a city that can realize the dream.
Property management is a beginning to end service that looks after the property, owners, tenants, tenancy contract and maintenance repairs to maximise revenue potential and maintain the investment.
Provided you select a reputable and professional company the benefits can be vast. A priority for busy owners is the convenience of the service to assist with all the tenant enquiries and receive timely notifications of tenancy requirements and updates on the relevant laws. Managed properties will take precedent and many Tenants prefer renting a property that is managed rather than direct Landlord contact. Assistance with third-party payments can also offer effective solutions to banking requirements. The inspections and maintenance services can be vital for non-local owners. The knowledge, experience and contacts the property management companies have will be considerably more than an individual owner due to the companies larger property portfolio and full-time business. An effective property management company will save you money in the long term.
All real estate activities in Dubai are governed by RERA (Real Estate Regulatory Agency) and in addition to a Trade License, a RERA certificate is required. Check the activity on the Trade License as they can vary depending on the type of business. For Management Companies with Real Estate supervision activity, they are not entitled to receive or collect rental cheques in favour of their companies. Exclusive Links are licensed in the activity of "Leasing and Management of Other People's Property" and this allows us to collect and disburse rental funds.
Enquire into the business operations which includes their property portfolio (number of properties managed and which areas), office location and working hours. The staff experience and longevity are very important to build long-term connections and have the assurance of expertise and know the people you can rely on and contact. Customer feedback and testimonials should provide insight into their existing client ratings of their performance and service standards.
Yes, you should request and review the Management contract which should detail all the services including a number of inspections, both party responsibilities, all charges and applicable fees.
This is very important to have the confidence your property will be exposed effectively in the market to minimise periods of vacancy. Review their marketing strategy and do they network managed properties with other licensed reputable companies to further reach a wide audience of potential tenants.
There is a wide variance of charges and services for you to consider and depending on your requirements. Firstly you should check it is a management company and not just a real estate agency offering partial management services. A charge as low as 3% may not include many of the value-added services a full management service will provide at a higher rate. Additionally, there may be a lot of extra charges that are added on top of a management fee that can increase owners charges.
Management companies may use their own contractors or outsource business to third parties however the main factor is to avoid any conflict of interest. If the management company is benefiting financially from maintenance works to your property then a lack of comfort and confidence in the work requirements and cost could be problematic.
The terms of the management contract should include termination notice and review any clauses regarding any paid fees or held funds.
Properties in Dubai all include annual services charges that are payable quarterly. This is for the upkeep of the communal areas within the building or community. Invoices for charges will be provided directly to the Landlord from the Developer/Owners Association. This information is confidential and late penalty fees can be applied if payment is not settled by the due date and therefore responsibility will remain with the owner.
To sell your property you will require the original title deed on the property obtained through registration at the Dubai Land Department. You will also need a NOC (No Objection Certificate) from the developer to confirm that the property is free from any liabilities such as the outstanding mortgage or unpaid instalments or service fees. Your original passport would be required and any other documents and receipts pertaining to the original sale and current state of the property. If your property is rented you will need a copy of your tenancy agreement and if you have sold through a registered Real Estate Agency a signed sellers agreement known as a Form A would be needed.
All transfers are now handled through the designated Dubai Land Department Trustee Offices located throughout Dubai. All parties pertaining to the transaction must be present. This can include a Power of Attorney (POA) delegated by the seller. When handling a transfer through Exclusive Links Real Estate we will advise you as the broker what documents and payments are required on the day of transfer.
The services of a lawyer are more usually engaged in other parts of the world when selling a property, however, this is not necessarily the case in Dubai. Contracts of Sale (or Memorandum of Understanding) are prepared via the agency handling your transaction and should be in line with the Dubai Government regulations. Please note a Power of Attorney (POA) cannot be anyone working for a Real Estate company in any capacity.
As a seller, you are authorised to sell your fully paid for and completed property on the resale market at any time once you are in receipt of your Title Deed. If your property is not yet completed and final payment has not been made then the developer will need to be consulted on transferring the payment plan to the new owner and to confirm that your payment instalments are up to date in line with your original Contract of Sale. It may be included in your initial Purchase & Sales Contract that a certain amount of the total purchase price (e.g. 40%) must be paid before Developer will approve a resale. Additionally, for off-plan property sales, the developers may set an MSP (minimum selling price) so to not undercut their available primary sales.
For any off plan sales, land registration is now done with the developer in line with the original purchase of your property. The registration fees are 4% of the purchase price and this cost is exempt from VAT. In the case of secondary sales this 4%, known as the transfer fee, is paid at the time of transfer of ownership and can be divided between 2 parties, the Seller & the Buyer.
Yes or else you can authorise someone to come to register your property with a notarized Power Of Attorney. The POA should be specific to the property and specify the purpose and the power within the contents to cover registration of the property into your name, the collection of original Title Deed and include the set up of utility accounts. It has been known for developers to also undertake this process on a owners behalf if requested and required.
Your lending bank can provide you with a certified copy of your Title Deed but will retain the original until the loan amount is fully cleared. The mortgage will have to be paid in full in order to release the original Title Deed for the sale formalities. The Dubai Land Department apply a small charge for mortgage discharge which is a further requirement before finalising a sale.
Having a valid tenancy contract on the property does not prevent you from selling. It will be part of your agreement with a buyer to transfer the tenancy to the buyer whom will automatically inherit the tenancy terms and replace seller as the Landlord. You may have to consider a refund of future rent for the remaining period of the lease and you will have to transfer the tenant's security deposit to the buyer. Ensure that your tenant has been served the appropriate and correct legal notice.
Law 33 of 2008 Article 25 states a Landlord may demand eviction upon expiry of tenancy contract if the owner of the property wishes to sell the leased unit but must notify the Tenant of the reason at least 12 months prior to determined eviction date and notification must be delivered by Notary Public or registered mail.
The minimum period of 12 months for eviction will commence from the date the Tenant receives the notice. In the event this notice has been provided more than 90 days before expiry of the current tenancy contract then you can opt to request the renewal from tenancy contract expiry only until the date the end of 12 month period. Any changes to the tenancy contract term must be done in writing at least 90 days before tenancy contract expiry unless otherwise agreed within tenancy terms.
It can be misleading for Sellers to assess their property value from the marketing material that collective agencies promote. A listing price may not be the actual selling price. Owners also rely on their chosen agency to provide them with an assessment of the value, however, this could vary from agency to agency depending on their experience, professionalism and knowledge of the product. At Exclusive Links, we offer specialist sales client managers whom can provide historical and factual market figures to support the valuation and achieve the right price for your property. As a seller your agency would be asking you to sign a Sellers Agreement Form A which confirms your instruction to list your property for sale.
Sales Proceeds at transfer must be in a Dirham managers cheque made payable to the owner/s names on the title deed. This can then be deposited and cleared in your home country bank account. Many overseas banks have a multi-currency account facility and you may consider opening a UAE Dirham account for quicker clearance. Whilst UAE banks are very accommodating when opening bank accounts, most banks will now require a UAE residents visa to open an account.