Your guide to making rental payments in Dubai
Paying rent in Dubai is perhaps the first entry on the list of expenditures for most. Dubai’s real estate market has a vibrant rental segment, highly popular with expat residents who move here in search of a better lifestyle and career opportunities. Various established practices regulate and monitor the city’s real estate market, including rental payments. If you are about to rent a property, here are some details you need to know about paying rent in Dubai.
DIFFERENT TYPES OF RENTAL ARRANGEMENTS IN DUBAI
Rental payments in Dubai will largely depend on your rental agreement. For a rental contract to be legally valid in Dubai, the landlord, the real estate agent and/or tenant must register Ejari online. If a rental contract in Dubai is not registered with RERA, the landlord and tenant have no legal protection in case of any potential rental disputes.
Before moving on to the details of paying rent in Dubai, let’s first look at the rental arrangements you would come across in the emirate.
FIXED RENTAL CONTRACT IN DUBAI
Most properties for rent in Dubai have fixed-term contracts. Here, the landlord and the tenant mutually agree to a set of terms and conditions for a certain time. These contracts, once registered, are regulated by the RERA rental property laws in Dubai.
A legally binding, fixed tenancy contract in Dubai gives the tenant the right to live in the property, which should be in a good, inhabitable condition. The tenant is also responsible for paying rent in Dubai to the landlord on or before the designated due date.
Apart from the basic rights and liabilities, the landlord and tenant can add any other clauses to the contract they have mutually agreed upon.
Any violation of the contractual clauses can lead to legal proceedings, should the affected party wish to initiate them. Landlords and tenants can file a rent dispute with RERA to seek legal remedies for any contractual violations.
Please note that failure to pay rent on time in Dubai amounts to a contract violation. In most cases, the landlords accept post-dated cheque(s) for rental payments in Dubai.
NO RENTAL CONTRACT
Fixed contracts require a valid residence visa to be legalised in Dubai and it takes some time for new expats to get their residence visas and other documents sorted. Short-term rentals, in such cases, are often more convenient as they do not require a formal agreement.
A short-term rental agreement also provides flexible plans for rent payment in Dubai, typically daily, weekly and monthly options.
DIFFERENT MODES OF PAYING RENT IN DUBAI
Whether you’re searching for a rental apartment in Dubai or looking for a bigger house, it is essential to familiarise yourself with the process of renting properties in Dubai.
You may notice that landlords do not prefer monthly rental payments in Dubai as a form of security. Instead, they demand rental payments as single or multiple cheques. This also discourages the tenant from vacating the property before the contract ends.
Moreover, with the deal between Emirates NBD and Dubai Land Department, direct debit Ejari payment has become a viable option. Rental cheques have become digitised and automated. This means rental payment collection is possible via the UAE Central Bank’s Direct Debit System (UAEDDS).
To follow the direct debit payment model, the landlord can approach Emirates NBD and get registered for the service.
PAYING RENT IN DUBAI WITH A SINGLE CHEQUE
Some landlords prefer a single cheque for the payment of rent in Dubai. This means you must pay the entire year’s rent in one go, with a cheque dated for the day the property keys are handed to you. While it is a way of securing the landlord, this method of paying rent in Dubai is not always feasible for tenants.
However, that said, paying a lump sum amount for rent isn’t bad. Yes, it may put an initial financial burden on you, but it relieves you from worrying about rent payments every month. Also, when paying rent in Dubai with a single cheque, you usually pay less than what you would do if the rent is broken down into multiple cheques.
USING MULTIPLE CHEQUES FOR RENTAL PAYMENTS IN DUBAI
The other, more convenient option to pay rent in Dubai is through more than one cheque. Some landlords accept rent payments in two, four and sometimes even six cheques over the year. All these post-dated cheques are given to the landlord or the property management company on the day they hand over the property to you.
The landlord then goes ahead and cashes them on the due dates. The flexibility to pay rent biannually, quarterly or every two months reduces the financial burden on tenants. However, paying rent in Dubai with multiple cheques comes with a price. You pay more in the long run than you would with a single-cheque payment.
DIRECT DEBIT
You can make rent payments via direct debit in the UAE using Asteco’s Direct Debit System (UAEDDS). Emirates NBD bank account holders or credit card holders can pay their rent via direct debit.
Even overseas property investors can open non-resident savings accounts with Emirates NBD and collect rent. Remember that the bank does not impose fines if there isn’t enough balance in the account. However, the landlord or the property management company may put a penalty in such cases directly, outside the banking network.
PAYMENT VIA CREDIT AND DEBIT CARD
Tenants can pay their annual rent in 12 monthly instalments using the Keyper app. This service is launched recently with the goal to make paying rent in Dubai easier. This app eliminates the need to manually manage postdated cheques. Let’s have a look at how this ‘rent now, pay later’ app works.
- It offers you monthly rent on your current lease
- They pay the landlord upfront and sign the new lease with you
- You pay Keyper monthly and earn credit card points
You can add multiple credit and debit cards to the app. After you’ve made the payment, you receive a payment status alert. Other features of Keyper include tracking payments and managing your contracts.
FAQs ABOUT PAYING RENT IN DUBAI
CAN I PAY MY RENT IN DUBAI MONTHLY?
Even though it’s not very common, you can find rental properties in Dubai with monthly payment plans. Paying rent in Dubai every month may bring you convenience, but at the same time, they come at a premium. You end up paying higher in the long run than you would if you opted for a single cheque.
CAN I PAY RENT IN DUBAI USING MY CREDIT CARD?
Yes, recently the real estate investment management platform, Keyper has launched a program where tenants can pay rent using credit cards. The rent now, pay later app allows you to make payments hassle-free.
WHAT PERCENTAGE OF INCOME SHOULD I SPEND ON RENT IN DUBAI?
When it comes to the cost of living in Dubai, housing rent is one of the biggest expenses you must budget for. As a rule, you should not spend more than 30% of your income on rent. Any amount more than that may lead you to live on an extremely tight budget. It is, therefore, best to explore areas to rent in Dubai based on your salary.
Want to buy a property instead? Have a look at the reasons for investing in off-plan properties in Dubai before you decide.
Besides paying rent in Dubai, some additional costs are attached to renting a home. These include the security deposit that usually amounts to 5% of your annual rent. You also have to pay the agent’s fee, typically 5%. So, make sure you factor all that in when deciding on your budget.
CAN I FIND SHORT-TERM RENTALS IN THE CITY?
Those looking for short-term rental properties often find themselves weighing hotel apartments vs hotel rooms in Dubai when evaluating the different living options in the city.
Renting serviced hotel apartments in Dubai is a good choice for those searching for an all-inclusive space which is also furnished.
WHAT SHOULD I KEEP IN MIND WHEN RENTING A HOME IN DUBAI?
Before you go home hunting, it is vital to have a good idea of things to consider when renting in Dubai.
Ultimately your housing choice in Dubai comes down to your individual preferences. Whether you choose to live in a furnished or unfurnished flat in Dubai, the options are endless. All your needs, from location to budget, will be met if you know what you want.
That’s all we have on the different aspects of rental payment in Dubai. Whether you’re looking at long-term or short-term rentals in Dubai, the emirate offers a variety of rental options to cater to the diverse lifestyles of the expat community here.
Now you know how to pay rent in Dubai, which can be useful knowledge if you want to look into apartment rentals in Dubai.
There are plenty of rental properties in the emirate from opulent townhouses and flats to villa for rent in Dubai.
Lastly, our guide on tenant selection in Dubai can be useful when renting out your property in the city.
