Moving to a foreign country can be intimidating and finding the best place to rent can be daunting. Dubai's expatriate population is steadily increasing and demand for rental properties is high. Unfortunately for tenants, this has resulted in skyrocketing rents. Approximately half of UAE residents spend about 30% or more of their salary on accommodation expenses. Despite the costs, most expats, mainly in the UAE for short-term work contracts, opt to lease rather than invest in the real estate market. To the relief of many of those looking to rent property in Dubai, the government has imposed legislation stipulating that any rent increase shall not exceed 7% of the annual lease price. There are also several new property developments underway that should take some pressure off the market in the near future.
Housing allowances are typically part of the expat package. Although in the past companies would cover the bill for the entire rental amount, the trend now is for expats to be allocated a certain percentage of the total yearly accommodation cost, with the rest being paid for out of their salary. Other fees to bear in mind when renting include a security deposit (refundable at the end of tenancy if the rental is deemed to be in good condition by the landlord), possible car parking fees, monthly utilities, municipality charges (typically 5% of the lease), and a 5% commission fee if the services of a real estate agent are used. Maintenance and repairs of the property are covered by the landlord. Tenants are not allowed to make changes to the structure of the property inside or out without the permission of the landlord.
The lease will often be drawn up between the landlord and the tenant's company / sponsor. If an expat signs the lease himself he must have a residence visa or at least a letter from his employer stating that a visa is in process. The normal duration of a lease is one year. Unlike in many countries where rent is paid on a monthly basis, in Dubai the entire year's rent is paid upfront, most commonly with 2 or 3 checks. For example, in the case of bi-annual payment, the first 6 months of the lease are paid for immediately with a current dated check, while the remainder of the year is paid for with a post-dated check. (Short-term furnished monthly accommodation in Dubai is available but it is often more costly.) It is important to understand that once the lease is signed, the tenant is tied to the contract. In order to terminate the lease the tenant would need permission from the landlord. That being said, the rental laws in Dubai actually favor tenants. Landlords cannot force a renter to leave without a very good reason (such as wanting the property for their own personal use). Even if the lease is only for a year, as long as the tenants do not break any aspects of the contract, the lease is presumed to be renewable. The Municipality has a special section set up, the Dubai Rental Committee, to oversee any disputes between landlords and tenants.
After cost, location is probably the biggest factor in determining where to rent. Dubai is split in two by the Creek with Deira (or "Old Dubai") on one side and "New Dubai" on the other. The decision for where to rent is based on factors including accessibility to work, schools, shops and hospitals. Some of the most popular locations to rent include:
Garhoud: located near Dubai International Airport and offering low-rise apartments and townhouses at reasonable rents.
Mirdiff: a newer development consisting mainly of villas located past the airport.
Bur Dubai: located near Bur Juman Shopping Center and offering reasonably priced apartments.
Downtown Deira: reasonably priced low-rise apartments are readily available in this neighborhood, although if work or schools are located on the opposite side of the creek the traffic can be a nightmare.
Satwa: a nicely located area situated between Sheikh Zayed Road, Bur Dubai and Jumeirah, offering low-rise apartments and reasonably priced villas. It is believed that zoning regulations will change for Satwa in the near future allowing development of high-rise buildings.
Jumeirah / Umm Suqueim: ideally situated near the beach, parks, and schools, this is probably the most popular area for the European and Local communities, offering upscale villas and townhouses.
New Dubai Developments: including The Greens, Arabian Ranches, The Lakes, The Meadows, Emirates Hills, and Dubai Marina and located near Dubai Internet City. Many offer gated, family friendly communities with access to swimming pools and other recreational amenities.
Those searching for Dubai apartments, villas, or rooms for rent can find extensive listings in the local classifieds or direct from property developers such as Arenco Real Estate, Alpha Properties, Better Homes, Cluttons UAE, or Century 21. The search for the perfect place to lease can be time-consuming and may seem overwhelming. Understanding UAE rental laws, using only a reputable real estate agent, and investigating the best possible locations are all part of making the hunt for an apartment or villa in Dubai successful.
Renting Property For Dummies
So you've got a property, and you want to rent it out to someone. There are plenty of articles out there covering everything you need to do to get set up for it, but what about the most important part of renting? The most fundamental, essential part, without which renting is completely impossible? Take a guess, what do you think it is.
Chances are, if you've stopped to think about it, you've probably come up with a lot of different things. Maybe you've thought about getting the property ready for renters, and making sure the building itself is up to scratch. This is undeniably important, as there is no point in trying to let something that nobody wants.
Or maybe you're thinking about the legal side of things. For example, preparing a good application form, that includes everything you need to know. Deciding how you are going to pick which tenants to allow in, and how to arrange for payments and deposits. You'll need to put together a comprehensive business plan, and ensure that everything you are going to do is planned out and clear in your mind.
Perhaps you're thinking about how to handle your tenants, resolving disputes, rules on pets or subletting or anything else that might crop up. Hopefully you've included all this in your business plan, but it can be hard to plan ahead as you never know what's going to come up. So maybe the most important thing, is to be prepared for anything. Nope.
Surprisingly, the most important part of renting something is also the one most often overlooked, and it is this: To rent something, you need someone to rent it too. So the most important part of property rental, is finding tenants.
Obviously, you need to find some way of letting people know. "Build it and they will come" is a fine slogan, but in practice, it very rarely works. Better, in fact, to think "Tell them about it and they will come". So lets have a look at some of the ways you can spread the word.
Posters. Billboards. Notices. Physical signs such as this, are an excellent ideas if you are trying to attract people from a specific region. To give you an example, if you want to get students from your local campus, this may well be your best way of advertising. On the other hand, this can easily be expensive, and is often not as effective as you might like.
Newspapers. A better idea, this can reach a much wider audience. Just post your ad in the local freeads, or similar paper. In fact, you can even place ads for free in many cases, although this is still far from the most effective system. Can work will in combination with others, though.
Television and radio. It's a nice idea, but is significantly more expensive, and actually less effective, then the physical notices. The only benefit is that it reaches a far larger audience, but practically speaking it's not a real consideration.
The internet. Now you're talking. Everyone uses the internet, so you've got a huge audience, and more then that it's targeted. You know, if someone is looking at a rental site, that they are interested in renting something- so you'll get a much better response from this then from anything else. Of course, you still have to find the right site.
There are a lot of different places to post online, as a simple search on google will show. But with so many to choose from, how do you know which to pick? Well, take a look at some of them. You want a page that looks good, that is, it's clear and easy to use. If it's not, visitors won't bother with it. Also, look at the number of properties being offered currently. If there are a lot, then you'll have a lot of competition, but if there are very few then it's probably not a popular site.
In the end, as you are looking through all these sites, you'll probably notice that there is something similar about all of them: they are charging you to post on them. As wonderful as the internet undoubtedly is, you may think twice about using it when you see what is charged. I know I did. However, you now have another option- free sites. Only occurring recently, there are a small number of excellent websites that actually offer their services completely free.
For example, take a look at localets.co.uk. It's an excellently designed site, with everything you could want, and it's completely free. Who says that property advertising should be expensive? It shouldn't the prices some people are charging are simply crazy. It is well worth your time and effort to track down a number of sites like these, and sign up to all of them. After all, what have you to lose? It's totally free. And if you still feel the need, you can always sign up to one or more of the others as well.
So there it is. The most essential, vital, part of renting is finding people to rent from you. And the best way to do that, is to advertise online. What are you waiting for? Get on with you, and start doing it!
Both Ahmed Juma & Paul Fogarty are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Ahmed Juma has sinced written about articles on various topics from Parental Care, Property Investment and Travel and Leisure. Ahmed Juma is a local UAE businessman who owns and manages several apartments and villas for lease in Dubai. He is also the owner of Emirates-Ads, a
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