Article 107

Key RERA Rules Every Property Investor and Tenant in Dubai Should Know

Dubai's real estate market continues to attract investors and tenants from around the world because of its strong regulations, transparency, and investor-friendly environment.

However, whether you are renting an apartment, buying an investment property, or purchasing an off-plan unit, understanding RERA rules, government fees, and responsibilities is essential to avoid unnecessary costs and disputes.

The Real Estate Regulatory Agency (RERA), under the Dubai Land Department (DLD), regulates Dubai's real estate sector and protects the interests of property owners, tenants, buyers, developers, and real estate professionals.

Below are the key RERA rules every property investor and tenant should know, including the estimated costs and who is responsible for processing each requirement.

1. Ejari Registration is Mandatory for Every Tenancy Contract

What is Ejari?
Ejari is the official registration of a tenancy contract with the Dubai Land Department. It validates the rental agreement and provides legal protection for both landlords and tenants.

Without Ejari, tenants may face difficulties with:

DEWA activation
Internet connection setup
Visa-related requirements
Rental dispute cases
Official tenancy verification

Ejari Registration Fee:

Approximate cost:
AED 220 – AED 250

Additional charges may apply depending on the service provider.

Who Processes Ejari?
Tenant:

The tenant is usually responsible for arranging Ejari registration.
Real Estate Agency:

If the property was rented through an agency, the agent can assist with the process and may submit the documents on behalf of the tenant.

Required Documents Usually Include:
Tenant:

Emirates ID
Passport copy
Visa copy
Signed tenancy contract

Landlord:

Title deed
Emirates ID/passport copy

Official Resource:
Dubai Land Department – Ejari Services
https://dubailand.gov.ae/en/eservices/campaign-for-ejari-services/

2. Rent Increase Must Follow the RERA Rental Index
Many tenants believe landlords can increase rent whenever they want. However, Dubai regulates rental increases through the RERA Rental Index.

The allowed increase depends on the difference between the current rental price and the market rental value.

Possible increase:

0% increase
Up to 20% increase

depending on the official calculation.

Example:
Current annual rent:
AED 100,000

If RERA allows a 10% increase:
New rent:
AED 110,000

Who Checks the Rental Increase?
Landlord:
Responsible for checking whether an increase is allowed and providing proper notice.

Tenant:
Can verify the rental valuation through the RERA Rental Index.
https://dubailand.gov.ae/en/eservices/rental-index/

Real Estate Agency:
If the property is managed by an agency, the agency may assist both parties in checking market rental values and negotiating renewal terms.

3. 90-Day Notice Requirement Before Rent Increase
A landlord cannot suddenly increase rent when the contract is about to expire.

Any changes to the tenancy agreement, including rent increases, should be communicated at least:
90 days before contract expiry

Who Sends the Notice?
Landlord:
Responsible for providing official written notice.

Real Estate Agency:
If the property is managed by an agency, the agency usually communicates the renewal terms on behalf of the landlord.

Tenant:
Responsible for reviewing the notice and deciding whether to renew, negotiate, or vacate.

4. Security Deposit Rules
A security deposit is collected to cover possible damages beyond normal wear and tear.

Typical market practice:

Unfurnished Property:
5% of annual rent

Example:
Annual rent:
AED 100,000

Deposit:
AED 5,000

Furnished Property:
10% of annual rent

Example:
Annual rent:
AED 100,000

Deposit:
AED 10,000

Who Pays and Handles the Deposit?

Tenant:
Responsible for paying the security deposit before moving in.

Landlord:
Responsible for holding the deposit and returning it after the tenancy ends, after deducting any valid repair costs.

Real Estate Agency:
Usually collects the payment on behalf of the landlord and coordinates the refund process.

5. Property Maintenance Responsibilities
Maintenance responsibilities should always be clearly written in the tenancy contract.
Usually:

Landlord Responsibilities:

Major repairs
Structural issues
AC system failures
Plumbing problems
Electrical issues

Tenant Responsibilities:

Minor repairs
Daily maintenance
Damages caused by misuse

Who Handles Maintenance Requests?

Tenant:
Reports issues to the landlord or property management.

Real Estate Agency:
If the property is under management, the agency coordinates maintenance requests and contractors.

Landlord:
Responsible for approving and paying for major repairs.

6. Foreign Investors Can Purchase Property in Freehold Areas
Foreign nationals can purchase properties in Dubai's designated freehold areas.

Investors can:

Own property
Rent their units
Sell their property
Transfer ownership according to UAE laws

Popular freehold areas include:

Downtown Dubai
Dubai Marina
Palm Jumeirah
Business Bay
Dubai Hills Estate
JVC

Who Processes the Purchase?

Buyer:
Responsible for providing documents and paying required fees.

Real Estate Agency:
Assists with:

Property search
Negotiation
Documentation
Coordination with developers or sellers

Developer/Seller:
Provides ownership documents and completes transfer requirements.

7. Dubai Property Purchase Fees & Responsibilities
Buying property involves additional costs beyond the purchase price.

Dubai Land Department Transfer Fee
Fee:
4% of property value

Example:
Property price:
AED 1,000,000

DLD fee:
AED 40,000

Additional fees may include:

Trustee center fees
Title deed fees
Administrative charges

Who Pays?

Usually:
Buyer:
Pays DLD fees and registration costs.

Seller:
Usually responsible for clearing outstanding payments or liabilities.

Real Estate Agency:
Coordinates the transfer process and documentation.

Dubai Land Department:
https://dubailand.gov.ae

8. Off-Plan Investment Rules
Before purchasing an off-plan property, investors should verify:

Developer registration
Project approval
RERA registration
Escrow account
Payment plan details

Common Fees:
DLD Registration:
4% of property value

Oqood Registration:
Approximately AED 1,000 + charges

Who Processes Off-Plan Registration?

Developer:
Registers the project and processes Oqood documentation.

Buyer:
Provides documents and pays required fees.

Real Estate Agency:
Assists buyers with:

Project information
Booking process
Developer coordination
Documentation

9. Rental Disputes Center (RDC)
If landlords and tenants cannot resolve disputes, they can approach the Rental Disputes Center.

Common cases:

Rent increase disputes
Deposit disputes
Maintenance issues
Eviction disagreements

RDC Filing Fee:
Approximately:
3.5% of annual rent value

Minimum:
AED 500

Maximum:
AED 20,000

Who Files the Case?

Tenant or Landlord:
Either party can file a dispute.

Real Estate Agency:
May assist with documentation but does not represent either party unless legally authorized.

10. Always Review Your Contract Before Signing
A tenancy contract or purchase agreement is a legal document.

Before signing:

Tenants Should Check:

Rent amount
Payment schedule
Maintenance responsibilities
Renewal terms
Deposit conditions

Investors Should Check:

Developer reputation
Payment schedule
Handover date
Service charges
Ownership documents

Who Reviews the Contract?

Tenant/Buyer:
Responsible for understanding and approving the agreement.

Real Estate Agency:
Provides guidance and ensures required documents are prepared.

Legal Advisor:
Recommended for complex transactions.

Dubai's real estate regulations are designed to protect both investors and tenants. Understanding RERA rules, government fees, and responsibilities helps avoid misunderstandings and creates a smoother property experience.

Whether you are renting a home, buying your first property, or building an investment portfolio, always: