Bought to rent in Dubai? Here’s what you need to move in
Owing to the tremendous growth in recent times, the Dubai property market has seen significant investment from both local and international investors. At times, people invest with the intention of renting out a property and earn a steady income. However, due to a change in circumstances, they wish to move into the property bought to rent. So, what happens if you initially bought to rent in Dubai, but now you want to move into the property? We discuss the procedure for such a scenario and the legal requirements you would have to follow.
CAN YOU MOVE INTO THE PROPERTY BOUGHT TO RENT?
The basic question to ask is can you move into the property bought to rent? Yes, you can. The requirement for moving into the property bought to rent or things to consider before moving into the property bought to rent can vary according to the status of individual properties.
A NEW PROPERTY
In case, you invested in an off-plan property that was previously under construction and is now ready to move in, there are no extra steps to follow. You can move into the property bought to rent, right away. You can use the Title Deed to register for DEWA and other services.
A RENTED PROPERTY
For properties that have been rented out already, there are certain steps to follow to move into the property bought to rent. Essentially, the landlord needs to:
- Send an eviction notice detailing the reason, via registered mail or the notary public, 12 months prior to the date of eviction.
- Prove that they do not have any suitable alternative property to reside in and serve their purpose.
Registered mail or postal courier (signed for) can be used to send an eviction notice as well as outlining the reason of the eviction i.e. landlord plans to move in, in the case we are discussing. This would be a 12-month notice period for the tenant to find a new residence. Emailing or handing in a letter personally is not considered official communication.
Another method is to visit a notary public or Dubai Courts and type up the document. One should carry documents including the tenancy contract, the Ejari documentation and passport copies of both landlord and tenant. You would need to get the document made both in English and Arabic, unless both parties are Emiratis. The cost of the notice is dependent on various factors. Eviction notice fee in Dubai can range from AED 600 to AED 900. Using a notary is considered to be a more formal way to go about it.
Previously, eviction notices were attached to the landlord. Which meant that a change in ownership would nullify the old notice and a new notice had to be issued. However, a recent court case showed that eviction notices are attached to the property and not the individual. So, if you had bought a property six months after the previous owners had issued an eviction notice, the tenant will have six more months to leave the property or renegotiate a new contract.
FAQs
WHAT HAPPENS IF THE PROPERTY IS NOT SOLD AFTER EVICTING THE TENANT?
After an eviction notice for the purpose of sale or personal use, the landlord cannot re-rent the property for a period of two years. If one does so, the tenant can take legal action and seek compensation. This is one of the things to know before moving into the property bought to rent.
WHAT ARE THE RIGHTS OF LANDLORDS IN DUBAI?
The government of Dubai has developed a system where rights of all stakeholders are protected. Read our guide to find out the rights of landlords in Dubai.
HOW TO BUILD A GOOD TENANT-LANDLORD RELATIONSHIP?
Read our tips on how to maintain a good tenant-landlord relationship in Dubai.
This concludes our look at the process to move into the property bought to rent. Now you are aware of the things to consider before moving into the property bought to rent.
The legal system in the UAE is designed to be efficient and there are multiple ways to resolve disputes. Hence, even if your circumstances and preferences change, there are simple procedures you can follow to adapt and find the right solution for all parties involved.
