- AX Blog
- Ejari – Registration of Rental Agreement in Dubai
Renting real estate in Dubai is very popular. Short-term and long-term rentals are in almost equal demand among expats and residents. This demand for rental housing creates great opportunities for investors who wish to invest in Dubai real estate. However, leasing properties in the UAE has its own nuances in the form of mandatory procedures. One of these procedures is registering a rental agreement in the Ejari system, which we discuss in detail below.
Content:
What Is EJARI
Ejari is an online system for registering and tracking all rental agreements in Dubai. Registration in the system is of great importance for both parties of the rental transaction. It guarantees the opportunity to use court services and connect utilities. In addition, according to Law #26 of 2007, registration of rental agreements is a mandatory requirement for all landlords. Registration requirements apply to all types of properties – from villas and townhouses to apartments and penthouses.
Ejari is necessary for the government to monitor the rental property market and protect all parties of the transaction. If any serious problems or disputes arise between the tenant and the landlord or the mediator, the case goes to court. However, the court is obliged to reject the application if the rental agreement is not registered in the Ejari system.
It is worth noting that in the case of short-term rental, the landlord also needs to obtain the Holiday Home Permit and Unit Permit. A short-term lease is considered to be a lease agreement for a period of less than a year.
Registration in Ejari
There are two ways to register a lease agreement: online and in the official centre. For online registration, you can use the Dubai Rest website or app.
Documents required for registration:
- Passport or Emirates ID (if applicants are UAE residents);
- Copies of Identity Documents;
- A Copy of the Title Deed of the Property Being Rented out;
- Original Rental Agreement;
- Power of Attorney, If Available.
According to the law, the landlord of the property must register the agreement, but the tenant can also do this. The cost of registration will be 220 AED ($60). With online registration the price will be lower – 180 AED ($50). The required fee can be paid by either party.
The entire registration procedure takes no more than 15 minutes. In the online format, you need to register on the Ejari website, then enter all the necessary data and upload scans of documents. Once your application is approved, you will receive a certificate to your email. When registering at one of the centres, you need to hand over all documents to the centre employee, and then receive a ready-made solution. This method may take a little longer, depending on the existence of queues.
Termination
Only one contract can be concluded for the property being rented out at a time. Also, the tenant can only be listed in one Ejari agreement. When the tenant vacates the property, you must visit the site again to submit an application to terminate the contract. Only after this will you be able to conclude a new contract.
Only the landlord can terminate the current contract, which is achieved by going through a quick procedure and providing the following documents:
- Original Rental Agreement;
- Latest Utility Bill;
- Emirates ID of the Landlord;
- No Objection Notice (NOC).
The termination process takes a few minutes.
Advantages of the Ejari system
Ejari is most useful for renters looking for a new home. Information about all residents and concluded contracts is stored in the DLD database and can be provided to anyone. The tenant will be able to see the following data:
- Total Number of Past Occupants;
- Number of Lease Renewals;
- How Many Contracts Were Cancelled.
This way the tenant can make sure that the landlord is honest and that there will be no problems with the landlord during their stay.
An Ejari certificate confirming that the tenant has a home is also necessary for him to apply for a residence permit, a commercial licence and to connect utilities.
Buying property in Dubai for investment
Purchasing residential property in Dubai and then renting it out will be a profitable solution for investors. Regular passive income, high demand for real estate and stable price growth create an ideal environment for safe investments. If you are looking to invest in residential property in Dubai, please contact AX CAPITAL specialists. Our agents will find the most suitable solution for you, based on your wishes and capabilities. You will also receive round-the-clock support from our specialists throughout the entire transaction – from choosing a real estate object to completing all the necessary documents.