 For the numerous people who come to Dubai, the new rental laws and
their implications are very important. With the great influx of people
in Dubai, rental laws have become a very important issue. With the
rising demands for rented property in Dubai, the rents have increased
considerably over the years. All the people who come to Dubai for work
face the problem of exorbitant rents. But the new law will come as a
breath of fresh air because it states that the rent cannot be increased
by more than 5% of the lease price.
Rental allowance is reserved for the expatriates. Earlier, the
individuals would be paid the entire rent by the employer but recently,
the companies give their employees a certain percentage of the yearly
housing costs and the rest has to be coughed up by the person
concerned. When it comes to renting property in Dubai, there are other
costs that come to the forefront like a security deposit, car parking
money, municipality fees, other monthly utilities and in case you have
sought the help of a real estate agent to get hold of the property, you
have to set aside 5% commission for the agent as well. You need to
remember that you will not be able to make any changes in the rented
property.
For the expatriates, their company signs the lease
with the landlord of the concerned property. The expatriate can only
sign if he is a holder of the residence visa. Generally, the lease is
valid for a period of one year and it is, however, extendable if there
is no breach of contract from the side of the tenant or if the landlord
requires the property for personal reasons. The rent of the entire year
is paid at a time. The new revised rental laws in Dubai are actually
quite favorable for the tenants. In case of any disputes, the Dubai
Rental Committee is a body that is there to resolve any issues that
emerge between the landlord and the tenant.
Sources in the
government have been quoted as saying that the rental laws in Dubai
will soon be undergoing another major change. These laws will look at
solving the landlord – tenant dispute and also play an important role
in the way things are done when it comes to renting property.
At
present, any dispute related to rental property is sorted out by the
Rents Committee. However, with the new law that will come into force,
the whole scenario is about to change. The law has been passed by the
Vice President, Prime Minister of UAE and Ruler of Dubai, H.H Shaikh
Mohammad bin Rashid Al Maktoum.
All issues related to renting
property in Dubai, like tenancy, subletting, bachelor accommodation etc
will be solved by the Dubai Land Department. The new law will change
many things significantly. One, however, cannot be sure if the rent cap
too will be subjected to change.
The ever increasing rents have long been the problem for numerous expatriates who come into Dubai for work.
This
law will look at everything related to rented property with a new
perspective. It will play a major role in developing the already strong
property market in Dubai.
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