How to Renovate a Rental Property

Renovating and keeping your property up-to-date is a necessity. However, all renovations must be planned as per the rules and regulations of the UAE. In this guide, you will be taken through the entire process of how to renovate a rental property, including all the necessary documents and how to keep your tenant informed.

• Approvals required before starting the renovation
• Consent of tenants to renovations
• No objection certificates (NoC) from communities and their importance
• Government permits for the renovation of rental properties
• Clearances required for electricity, water and cooling systems
• Safety and green requirements while planning how to renovate a rental property
• Scheduling renovation in occupied units
• Renovation and rentals in Dubai
• Key takeaways
• FAQs

Approvals required before starting the renovation

For most of the interior work, you will have to get permission from the building manager as well as your local authorities.

In Dubai, the permits come from Dubai Municipality for which uses the building-permit system, while in Abu Dhabi, TAMM issues the building permits. Even if you are planning to get only cosmetic changes done, make sure you have obtained permits before making any changes to the layouts. 

The building code of Dubai applies to all types of renovations and changes. There are several technical dos and don’ts set by the municipality which all designers and vendors should follow.

Wherever permits are necessary, the submissions made must show compliance with the building code. If there are any green-building specifications that are applicable to renovations, they should also be followed.

Consent of tenants to renovations

In Dubai, any cosmetic or decoration work can be carried out by the tenants. However, permissions and all the necessary licenses should be in place. Moreover, the property owner cannot obstruct the full use of the property. For any renovations that prevent the use of the property, a proper notification to the tenant and permits need to be obtained by the owner before starting any renovation work. 

In case the lease expires due to demolition or extensive maintenance and the tenant is required to vacate the property, the property owner is required to give a 12-month notice via a notary public or registered post. This can only be done once proper permits are obtained for renovation.

If the scale of your renovation requires a vacant apartment, all your timeline as an owner should be planned around the obligations.

No objection certificates (NoC) from communities and their importance

For most master developers, a NoC is required before the renovation work is started. Like, rules for home modifications and the process to obtain a NoC are officially shared by Emaar Community Management for apartment as well as villa owners. The application for the NoC requires you to submit the scope and scale of renovation, blueprints of the property and contractor details. 

In addition, NoCs for modifications and guidelines for designs are also published by Nakheel Community Management. In some communities, the owners are required to get a Nakheel NoC and then go to government authorities for permits and approvals.

Government permits for the renovation of rental properties

In Dubai, to determine whether your renovation is a structural change or a minor refurbishment, follow the building-permit steps and read the related FAQs. The authorities will then inform you whether you need to go for a self-decoration permit or if proper maintenance permits will be applicable.

While determining the types of permits you require, you cannot completely depend on the advice of the contractor. It is important that you also verify the requirement. 

Additionally, in Abu Dhabi, you can get a dedicated service to request a Maintenance Permit to get cosmetic improvements or decoration works. Afterwards, you will have to submit the scope of your renovation along with the location. As per the approval received from the municipality, you can then start the work. At the time of inspection, the permit should be kept handy.

Clearances required for electricity, water, and cooling systems

If the scope of your renovation plan involves any changes made to the electrical loads or demand isolation of any panels, there is a formal service provided by Dubai Electricity and Water Authority (DEWA).

In this service, DEWA offers modifications to the networks and even temporary disconnection of power. You will need these to shut down safely and schedule your panel or meter changes with your contractor.

You will also need coordination between cooling systems and the water supply. On the builder service pages of DEWA’s website, you will find how to raise a request for changes to the connection and review of the NoCs. If you plan any refurbishment to the kitchen or bathroom, you should notify them early to avoid any delay in the renovation work due to utility clearances. 

Explore the Available Villas for rent in Dubai

Safety and green requirements while planning how to renovate a rental property

In Dubai, the regulation for handling the waste material from the renovation process and offering temporary protection is governed by the Code of Construction Safety Practice. If there are occupants in the building, these regulations must be followed by the contractor. The code regulates the use of barriers, chutes and dust control to prevent any inconvenience to other occupants of the building. 

Additionally, any refurbishments or additions that require a building permit also have Green Building Regulations applicable to them. Under these regulations, designers are obligated to take into account the efficient use of water and electricity. These measures need to be documented as they will be submitted at the time of applying for permits. 

For waste management, the guidelines of the Dubai Municipality must be followed. Debris from the renovation must be segregated and stored as per the guidelines of the municipality. Licensed hauliers who have experience in handling construction material should be onboarded.

Besides, you should also make sure to keep all receipts to maintain the records and prove that all disposal compliances were met if you are asked to show evidence.

Scheduling renovation in occupied units

Any renovation work should not restrict the full usage of the property by the tenant. To comply with this rule, you will have to plan a phase-wise work, tasks that are not intrusive and have a written agreement with the tenant for access. In case the scope of renovation does not allow the work to be carried out if the house is occupied, you will have to legally inform the tenant with timely notice and all the supporting documents. 

In case there is a dispute between the tenant and the property owner, the laws of Rental Dispute Settlement Centre (RDC) will be applicable. All communication with the tenant should be documented by the owner. In addition, all permits and inspection reports should be maintained on record to support that the owner had renovation plans in good faith.

Renovation and rentals in Dubai

The official rental increase calculator and rental index must be followed before increasing the rent of the property in Dubai. Renovating the property alone cannot be a reason to increase the rent at the time of renewal. Owners must check if any increase in the rent is allowed for their category of unit and the location before they propose the increased rent to their tenants.

There is a cap on rent increase set by Decree 43 of 2013. The rent increase depends on how your new proposed rent compares with the average rent of other units in the area. Additionally, the official rent increase calculator helps you to test out different scenarios post-renovation and stay in compliance with the rules during the discussion of an increase in rent.

Explore the Available Apartments for rent in Dubai

Key takeaways

To successfully carry out renovation work, getting the right approvals and permits is a mandate. NoCs from the community, permits from the authority, coordination for utilities – how well you plan all of this determines how quickly and efficiently you will be able to carry out the renovation work in your unit. Respecting the occupants’ rights is imperative for owners while planning any type of renovation work. If you are required to give a notice to the tenant, make sure you comply to avoid any disputes in the future. 

While planning how to renovate a rental property, make sure the scope complies with all the local laws and sticks to the current demand. 

FAQs

Share