What every renter needs to know

When renting property in a different country the whole process can seem like a minefield.  How do you know where to start?  What do you need to look out for?  Our pointers will help get you started.

Setting a budget

Rental rates are moving all the time in the UAE and right now the movement is favourable to tenants.  Even so, make sure that any research you do is up to date.  Use our Market Price Live tool to find out the average advertised prices for properties in Dubai & Abu Dhabi. 

·         Will the rent be paid monthly (rare in the UAE), in four cheques, two or one?   If you don’t have a housing allowance that covers the rent and how it has to be paid you’ll need to work out a reasonable way of coming up with the necessary funds.

·         The general rule of thumb is not to allocate more than 30% of your income to rent so however nice that penthouse on the Palm may look, keep it reasonable and don’t over-extend yourself.

·         Don’t forget to account for any extra bills you may have to pay.  Do your research on cooling charges and other utilities.

Reputable agencies

If you’re handing over large sums of money and signing legal documents, it pays to use a proper agency.  Finding a property through 'someone who knows someone who knows someone' can be a shortcut to whole world of trouble.  If you’re being offered a property at a price that looks too good to be true, it usually is.

What you will pay

It’s vital that you know exactly what costs are involved with renting property and when you will be required to pay:

·         If you rent a property through an agency you will have a fee to pay of approximately 5% of one year’s rent and this will be payable once you have signed on the dotted line.

·         You will pay usually pay a 5% security deposit to the landlord, which will be refunded at the end of the tenancy providing that the property is in good order and all bills are paid.

·         In the UAE, one year’s rent is often required up front, although this is becoming more flexible and tenants may be able to pay in multiple installments.  See if you can negotiate.

·         You will need deposits for utilities companies such as DEWA and district cooling if this is the air-conditioning method used in your building or community.

Inventory

This is one of the things that getting back your 5% security deposit will depend on, so you want to make sure that it’s all in order.

·         Review a copy of the inventory and go through the property with the landlord to check all items and descriptions.

·         In addition you should ask if you can carry out a self-inspection.  Any reputable landlord or agency shouldn’t have a problem with this and it allows you to have a proper look around at your own pace.

Contracts

These exist to protect both landlords and tenants and you should make sure that you fully understand the contract and the responsibilities of both you and your landlord.

·         Be aware of what the landlord does and doesn’t allow in the property, for example pets or smoking.

·         Ensure that the Rental Increase Cap regulations will be adhered to – this should be included in the contract.

·         In Dubai you can check to make sure that the tenancy contract has been registered with RERA (Real Estate Regulation Authority) and a similar system is due come into force in Abu Dhabi in September 2011.

If you are already in rented property and you have a dispute about your rent or contract you can contact RERA or the Rent Committee in Dubai.