Standard rent contracts in Dubai are for 1 year. At the end of the contract usually you either renew it or cancel it. How much can they increase my rent at the end of the contract though?

There are a few rules you should know in order not to be scammed by your landlord.

First of all, it is normal to have a 1 year contract. A parts for some rare exceptions, all rental contracts are for one year. This is partially due to the fact that Dubai population is constantly changing. There are the ones who arrive and the one who go. For you as well, having a one year contract might be useful if you decide that your time in Dubai is over and you want to relocate.

So if you are signing your first rental contract, don’t worry, it is normal. You can also check what to pay as Deposit and which other costs you might have in our article.

Something you really want to negotiate though is the notice period.

Let’s make a distinction between leaving at the end of your contract or before. If you want to leave before the ned of the contract or you want to keep the option open, it is better to negotiate favourable terms. Something you do NOT want is to have a penalty.

It is common to have a 2 months notice period with a 1 or 2 months month penalty.

This means that if you want to move at your 9th month of contract, you need to give the notice at the beginning of the 7th month. Moreover, depending on the terms, you might be forced to pay 1 or 2 month of penalty. In the example, you need to pay the 10th month even if you are not going to live inside. Therefore, always better to negotiate this option at the signing moment. Try to get 0 months penalties or at least only 1 month. We know might be rare the occasion that you leave sooner, but always better to protect yourself.

The other deadline you have is the contract renewal. Usually you, and the landlord, have until 90 days before the end of the contract to define the new terms for the next contract. This means that if you want to renew your contract you need to say something before 90 days. Let’s see the case in which the landlord is not saying anything to you before the due date. In this case, it is defined that he does not want to change the terms of the contract for the next year. Therefore, he is okay with you staying.

If you want to negotiate a better price, you need to say something before 90 days to the end of the contract.

In case you miss this due date, unfortunately you cannot re-negotiate the price. While, if the landlord misses the date, he cannot increase your rent as well. The 90 days might be not standard. Just read the contract and appoint on your agenda the due date in order to not forgetting it.

However, if the landlord wants to increase the rent and he does it before the due date, how much can they increase my rent?

The rules are clear. RERA rules are applying. The only exception is if you are living in an Hotel apartment. In this case the hotel rules apply.

RERA defines the maximum yearly rental increase on the average price of the units in your area. Therefore, you need to compare what you are paying to the other units. You can estimate if you are already paying too much or if you are paying below average. If you pay more than average, the landlord CANNOT increase your rent. While, if you pay below average, landlord can increase the rent but by a maximum percentage.

According to the Land Department’s Decree Number 43, a landlord must follow the rules below:

• If your rent is less than 10% below the average market rate, no rent increase is permitted.
• If your rent is between 11% and 20% below the average market rate, a maximum increase of 5% is permitted.
• If your rent is between 21% and 30% below the average market rate, a maximum increase of 10% is permitted.
• If your rent is between 31% and 40% below the average market rate, a maximum increase of 15% is permitted.
• If your rent is more than 40% below the average market rate, a maximum increase of 20% is permitted.

In case the landlord wants to increase the rent and he is not following the rules. In this case, you can open a claim to the RERA and keep your rent the same. Sometimes you can just mention to the landlord that you to RERA if he doesn’t agree to a lower rent. Treating to do so most of the times is enough to make him changing his mind. Landlords know the rules.

You can find RERA rules and the average market rate of your area at this link: RERA rules.

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When you finalise a rent contract, the real estate agent is always asking you to pay a rent deposit. However is classic to feel scammed and to ask yourself “how much should I pay my rent deposit?”.

We have already seen together the steps to rent a home in Dubai. You can find them here: article.

Se let’s visualize it, you have finally found the place of your dreams or maybe just a place. NExt step is to sign the contract. Contracts are really standard in Dubai and the template si done by the RERA. RERA is the Dubai land authority, responsible to manage litigations and the housing market.

You can change the addendum, but not the main part of the contract, which is standard.

3 different EXTRA costs are written in the contract:

Ejari registration. Ejari is an online registration system initiated by the Real Estate Regulatory Agency (RERA, see above). It requires all rental or lease agreements in Dubai to be registered on this portal. The main objective of the system is to legalize the relationship between landlords and tenants in Dubai. This document is necessary and mandatory because it validate your rent into the land department. WITHOUT this document you cannot apply for electricity and water! The cost is around 250aed. You can do it yourself or ask the real estate agency to do it for you, paying them a small fee.

Agency Commission. The real estate agency is asking you, the tenant, to pay them a 5% fee for arranging the deal. The fee is standard and most of the time you cannot negotiate on it. You can pay it with a bank transfer or by cheque.

Rent Deposit. This is what you are requested to pay to your landlord. It might happen that the deposit is held by the real estate agency, but it is rare. It happens when the agency is also managing the apartment on the owner behalf. There are two standard rent deposits: 5 and 10%.

The 5% fee is for the NON-furnished house fee. This fee is for all the unit not furnished.

The 10% fee is for the furnished apartments.

You can pay them via cheque or wire transfer. Owner can cash them and does not need to wait the end of the contract.

It is really important to save your deposit at the end of your renting, to make an inventory of everything. Therefore, write down every single object there is the unit when you take the ownership the first day. Make the inventory part of the contract and have both parties signing it.

Moreover, another good tip to save your rent is to make a video of the unit together with the agency when they give you the key. In the video focus on all the details of the unit, including the walls, the kitchen and everything that is not perfect. Make pictures as well. As many as possible.

Unfortunately, I have seen landlords trying to always keep the deposit for all the smallest problems they find. At the end, they held the money so it is hard to have them back, especially if you have no proves of how the unit was the first day.

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How to rent in dubai is the second question you asked yourself after deciding to move to Dubai. The first one? When to start searching for a place. We have already discussed it in our article that you can read here.

Why is necessary this question? Well, we are new in the city and we have no experience. Is the real estate agent honest? Is he doing my interest or only his?

All questions that, in order to be able to answer, you need to have a clear picture of the Dubai housing ecosystem. You really need to master the art of knowing how to rent in Dubai.

The first step to rent is to decide in which area you want to move. Every different area has its own life and atmosphere. Different people and different vibes are related to different parts of the city. Soon a guide is coming to explain all this better. Be sure to subscribe to the newsletter.

As soon as you have an area in mind you can start the research.

BONUS point: get a chequebook before renting!!! See below why.

First thing: Google Maps. Why? Well because in Dubai there are no street names. I mean, there are, but nobody is really using them. Wherever you need to go or whenever you need to write your address, the name of the building is mandatory while the street name is optional.

So check the are you want to live, maybe even on street view and appoint the names of the buildings you like.

Second: go on PropertyFinder or Bayut and search for those buildings. Searching for buildings and not area is going to give you a better result and a more precise research.

Third: Contact the real estate agents via whatsapp or phone call. Explain them your needs and which buildings you like. Remember that timing is the essence of your research. Again, read my article about timing and housing: start searching.

Fourth: Arrange a visit. Try to organise a visit as soon as possible. The market is extremely fast so what is available today might not tomorrow. Do not wait, just go a see it the day after. NOTE: ask the real estate agent to verify that the unit is still available. Really ofter unfortunately, placed already taken are still listed. Moreover, since difference agencies are promoting the same units, agents might not be updated if the unit is still free or not.

Fifth: If you like a place do not wait too long. As said before, market is really fast so if you really like it, reserve it. So many times I have seen people loosing an amazing unit just because they waited too long. Even two-three days for thinking might be too much.

Six: negotiation. How much can you negotiate? Well, this depends on the area and on the status of the unit. Check the prices of similar units in the area or in the same building and make a comparison. Being the market really fast, unfortunately often there is not too much space for negotiation. However, you can still try and I suggest you to do so. Just do not ask for an unrealistic price because you might loose face with the real estate agent. He is going to think you are not serious.

What you can negotiate on is the number of yearly payments.

In Dubai contracts are standard of 1 year. You can ask for more years but is a bit uncommon. Yearly payments can be splitted in different ways. NOTE: you need a chequebook for your rent, so get one before starting. If you do not have one, unfortunately you either need to pay everything in advance or you might loose the deal. Yes one year rent in advace, this is Dubai standard.

Number of cheques can be between 1 or 6. More than 6 is really hard to get. The less cheques you want to offer, the more you can negotiate a cheaper price. Example: rent is 100k aed per year. You can offer 90k all paid in 1 cheque or you can offer 95k paid in 4 cheques.

Seven: Contract. Dubai contracts are really standard, you cannot change them. The only part you can change is the addendum. Be sure to include the inventory of the unit, the parking space (all unit comes with one) and the payment method.

Eight: EJARI. After having signed your contract you need to register it to the Dubai housing authority. This is usually done by tthe real estate agency, but you can save around 100aed if you do it by yourself.

Nine: DEWA. Once you have the Ejari registered you can connect electricity and water. Just go on DEWA website and apply there. They will come at yours to activate it in around 8 hours.

Tenth: Moving in. You can finally move in, however ask your doorman if you need to apply for a Moving IN permit from the building. If you have movers coming and you need to furnish the apartment, you need to ask the permission to the building.

It is a long process but later on you can finally relax in your new Dubai unit!! More precise guides on every points are coming, stay tuned!

The post How to rent in Dubai Explained appeared first on Entrepreneurs in Dubai .

You took the decision, you are moving to Dubai so when to start searching house in dubai?

Have you prepared your luggage? Have you planned your journey? Did you decide in which area to live? (Btw, a new guide to help you selecting which area is coming, follow the House section of the blog.)

Dubai housing market is quite a strange one. Things here are moving fast, people are coming, people are going. Together with them, apartments are almost having their own life.

On average, people live in Dubai for 3 years. This means a lot of apartments are taken and a lot are left empty everyday. Moreover, in Dubai companies are building new homes every day and announcing new projects! These factors contribute to a big volatility of the market. As well as, which houses are available and which are not.

Most of the time, people start searching house in Dubai a couple of months before actually moving. While this can be quite good in terms of understanding in which area you want to live, it is actually counterproductive.

Let me explain:i

If you want to buy or you want to rent start getting into the mindset that Dubai moves fast. Everything you see available on the big websites (i.e PropertyFinde and Bayut) might be already taken or not available tomorrow.

Yes, unfortunately real estate agents are so busy that they forget to remove already rented or sold units. Moreover, if you start searching house in dubai too soon, real estate agents are not going to answer you. Or they will tell you to text them back closer to the date.

Of course, if you start too soon, everything you see is going to be taken when it is time for you to move. Real estate agents will never hold an apartment for you. The market is fast! What is not taken today is going to be taken tomorrow. So you either pay immediately and moving there later or they will never accept your reservation. Which also means you will not see the unit in person). They can find a new tenant tomorrow so why bothering in having a unit not making a profit on the market just to wait you?

I know it is really hard and really strange, but this is the Dubai’s market. One day the unit is available, the day after is not. I have seen so many friends really thinking if buying or not, which resulted in thinking too much and then loosing the unit.

So what to do if you cannot start searching house in dubai too soon?

The main suggestion is to start searching house in dubai just two or three weeks before moving to Dubai. This allows you to have time to text with real estete agents and explaining your needs.

Another suggestion is to build a relationship with the agents. They will help you so find a few that you really like and have them searching for you the best unit for you. TIP: Ask for private deals, so everything is not on the main websites!

Last suggestion is to move fast when you see something you like. Different real estate agencies can show to people the same unit! Therefore, even if your real estate agent says that can be yours, be careful! Another agency can come tomorrow and rent it before you can take the decision. Trust me, I have seen it happening so many times…

To quote Harry Potter “Oh, and keep an eye on the “apartments” (staircases). They like to change…”

The post When to start searching HOUSE in dubai? appeared first on Entrepreneurs in Dubai .

I have lived in Dubai for more than 7 years at this point. I have seen the city changing and growing fast. More and more people are coming to live in Dubai. At the same time, a lot of entrepreneurs are deciding to move in Dubai and to start their businesses here. This is the reason for why this blog, a guide for all of them.

Data are clear, every day hundreds of new entrepreneurs are coming to Dubai. With them, their questions and problems are coming as well.

The more people are coming, the more I receive messages and questions about helping in setup in Dubai.

This is the reason for why this blog. I want to create a precise guide to offer help and suggestions to you. Do not make the mistakes I made once I moved here.

When you decide to move to a new city, most of the time you do not know where to start. Therefore, what you do is asking the people you know already there for help.

I really believe in the power of helping others. At the same time, I feel there is not a precise point of contact for the entrepreneurs in Dubai to understand better what they need to make business and to live a peaceful life.

It is true that other solutions are already out there. For example, consulates or business councils are really helping entrepreneurs in dubai to connect and to do network. This blog wants to be different. This is the fast guide you can consultate in a couple of clicks to solve all the small problems you might face on a daily base.

For example, where to buy good water, which are the first steps to rent an apartment or just how to get discounts in nice restaurants.

Yes, we are also going to offer you business suggestions and sharing our experience.

Our Mission is: SOLVING all your daily life annoying questions and problems as an entrepreneur in Dubai.
So you can focus on what matters the most: your business!

I created this blog with in different HACKS in mind.
The HACKS are the answers to all your daily questions you have, for which I have already found an answer during my life here in Dubai.

Different Hacks are related to all the questions I have asked myself through the years. Including, all the questions the new comers entrepreneurs in dubai have asked me in the past years.

I am summarising the most common Hacks in the following categories:

BUSINESS HACKS: This category is going to include all the suggestions i have for you to setup your business properly in Dubai. This section includes all the answers to the questions related to setup a new business, accounting, taxation, VAT declaration, and everything you need to know.

CITY HACKS: This category will include all the answers related to how to move around the city like a local. Understanding the different areas of the city, getting to know where to go or what to do.

HOUSE HACKS: Finding a place where to live is the first big problem when you move to dubai. Probably, just as big as setting up a business. This category helps you in understanding what you need to know, what you to do and how you can avoid being scammed.

LIFE HACKS: This section is going to help you in addressing all your concerns about how to live a healthy life. For example where you can buy what, which recommendations you need in this extreme weather and how to maintain a good work-life-dubai balance

However, you can always just read the latest from the Blog Section, where all the articles are going to show.

Do not forget to subscribe to the newsletter to receive all the answers in your email.

The post Why this Blog – Entrepreneurs in Dubai appeared first on Entrepreneurs in Dubai .