August 22, 2024
Renting and Leasing properties are very common in Dubai both in locals and in expats. Dubai is filled with vast and emerging neighbourhoods offering luxury living and high class amenities. The real estate in Dubai is evolving with time including all the modern trends and every area offers various types of properties from apartments to townhouses and villas. The lease agreements usually cover conditions and durations for both tenants and landlords, specifying the terms and conditions for the contract. Some of the few features involve location, size, amnesties that affect the rental cost of the property which is paid annually or biannually. The Real Estate Regulatory Agency (RERA) is responsible for controlling and directing Dubai's rental market and promoting fair and just practices between tenants and landlords. It provides a legal framework for all parties involved with the real estate industry in Dubai, and basically functions as a regulatory framework branch of the Department of Land and Property, founded by H.H. Sheikh Mohammed Bin Rashid Al Maktoum.
In the age of staycations and travel, landlords everywhere are starting to question if renting out their apartments is really the best option. Dubai has become one of the favourite tourist’s destinations and has drawn large crowds of people with the promise of an opulent lifestyle, world records, and, to put it simply, the perfect vacation. The Expo 2020 is the main reason for Dubai recording itself as the top tourist destination attracting travellers from all over the World. Since the pandemic, Dubai real estate market has seen a remarkable upsurge, therefore the investors are majorly concerned in determining the steps and course that is best suited to their needs.
Dubai gives options for both short and long term leasing. People who are planning to stay long in Dubai opt for the long term leasing of property. It is crucial to analyse the rental agreement beforehand in order to avoid inconvenience. In this journal, long term leasing and its advantages are being discussed but early some major factors in long term leasing must be considered to make an informed decision about preferences and needs.
Major Factors to Consider for Long Term Leasing
- Time Duration: In Dubai, long-term rentals usually refer to the rental of a home (townhouse, villa, or apartment) for a duration of time, usually one year or longer. Those who want stability and regularity in their living arrangements or who intend to stay in Dubai for a long time are fond of this option. Long-term rentals give tenants the chance to become settled in and feel at home in the neighbourhood.
- Preferences Based Commitment: A lease or Ejari agreement outlining the precise terms and conditions of a long-term rental must be signed. These terms and conditions include the length of the rental, payment schedules, security deposits, and maintenance obligations.
- Conveniences and Amnesties: Long-term rentals can come with a washer and dryer or basic kitchen appliances, but most of the time they won't always come furnished.
Understanding Long Term Leasing in Dubai
It is common for long-term rentals in Dubai to be rented for a year or longer. They provide tenants with a stable place to live with rent that is fixed for the year, along with an annual tenancy contract approved by RERA. They are typically furnished less and require separate utility payments. The purpose of these rentals is to provide a more stable and long-term living situation. Families and individuals relocating to Dubai for a permanent home frequently choose long-term rentals. These rentals are perfect for professionals who are on long-term business assignments because they allow them to have a consistent living area during their stay.
Types of Long Term Rental Property Types in Dubai
Studios: Studios are the best option for both the near and distant future. People intended to live alone for a while, mostly choosing a studio flat on a long-term basis.
Apartments: When it comes to long-term rentals, apartments are the greatest option. Usually, these properties are a part of a complex or society that provides accommodations for extended stays.
Townhouses: Townhouses, also referred to as townhomes, are usually single-story homes with two stories or more that are walled off from one another on one or both sides. Though it usually has a separate entrance, it can share facilities and yards among other things.
Penthouses: The most expensive floors of an apartment block are home to penthouses, which are opulent apartments renowned for their elegance.
Villas: Villas are opulent bungalows that provide a high standard of living. For those who relocate to the city with their families, these are perfect.
Pros and Cons of Long Term Leasing
Advantages
Reduced Monthly Cost
Compared to short-term rentals, long-term rentals often offer a lower monthly cost. They are a cost-effective option for people and families who want to spend a lot of time in Dubai because of their affordability.
Personalisation
Long-term renters frequently have the opportunity to make their living environment uniquely their own. To make the flat more comfortable and uniquely theirs, they can furnish, decorate, and alter it to their tastes and preferences.
A Sense of Community
Long-term residents have the opportunity to form bonds with their neighbours and integrate themselves into the neighborhood. This feeling of community can improve daily life and offer a network of support.
Disadvantages
Long-term Commitment
Long-term leases, typically lasting a year or longer, necessitate a major commitment. For those who would rather have flexibility or plan to move in the future, this long-term commitment may be difficult.
Utilities and Maintenance
Use and Upkeep Tenant obligations usually include paying for regular maintenance as well as utilities like internet, water, and electricity. This obligation may increase the overall expense and work involved in rental management.
Less Flexibility
Moving is less flexible with long-term leases than with short-term rentals. Tenants find it challenging to move on short notice because early lease breaks can have financial repercussions and penalties.
It is important to get knowledge about the legal frameworks that include the rights and obligations of both the tenants and landlords in order to have a fair and smooth dealing of property. Respecting the rules set forth in Law No. 26 of 2007 (also known as the “Dubai Tenancy Law”) and Law No. 33 of 2008 (also known as the Law No. 26 of 2007 amendment) is imperative for managing the relationship between tenants and landlords in the emirate. The choice of leasing depends on individual stay and preferences, the most important is deciding your condition of stay in Dubai and then budgeting the available resources and finally narrowing down the list among the ocean of possible options available in Dubai. Dubai is marked as the city of neighbourhoods that has everything for everyone, so whether looking for the hustle and bustle of the city, Downtown Dubai has many options for leasing and if you prefer a sandy beach, Jumeirah Beach Residences are available.
