# Rental system in Dubai



## Zayets (Jan 1, 2010)

I am new to Dubai and will just start to look for a place to rent.

The system here seems to be different then in other countries where I have lived where for example I have paid first and last months rent + a deposit or in some cases just first months rent and a deposit.

Here I see the terms 2 checks, 4 checks, 6 checks and am not clear on how the system works? I had one person try to explain it to me but their English was very poor......Can anyone explain it in layman’s terms to me?

Also I would like to get the best rental rates I can without having to put up a ton of money up front (for cash flow reasons).


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## mrbig (Sep 10, 2009)

Depends on the owner.
Some want 1 check year paid up front
some want 2 checks year split in 2 payments
some want 3 checks year split 3 payments
you get the idea right?

Basically if you have to pay for rent yourself then you need to have a substantial amount of money to do so.

Good luck.


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## dizzyizzy (Mar 30, 2008)

Another thing that is different here in Dubai is that if you want to rent a property through a real estate agent, is the tenant who has to pay for the agency fees (in other places is the landlord who pays for that). The agent's fee is usually 2.5% of the value of the contract (usually 12 months). So yeah, lots of cash that need to be put upfront.


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## Elphaba (Jan 24, 2008)

In fact the agent fee is frequently 5%, especially for villas.

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## rsinner (Feb 3, 2009)

Zayets said:


> I am new to Dubai and will just start to look for a place to rent.
> 
> The system here seems to be different then in other countries where I have lived where for example I have paid first and last months rent + a deposit or in some cases just first months rent and a deposit.
> 
> ...


One usually enters into a fixed 12-month contract renewable annually. Nowadays you might be able to get clauses in the rent contract to allow the tenant to break the contract mid-period by advance notice/break fee etc. Also, some place (very few and more expensive) allow people to have shorter term contracts renewable weekly/monthly etc

Once you enter the contract, in terms of cash flows you pay a security deposit (usually 5%) and the brokers' fee (if you went through an agent) usually 5%

Also, say if you are paying your rent in 4 cheques for the year, the first cheque is dated the first day of the contract (so for 4 cheques your are paying your rent for the 1st 3 months in the 1st month, month 4-6 in the 4th month etc)

The first cheque is a cash outflow then and there, but the other three cheques in this case will result in a cash outflow only when they become due. Landlords take the cheques in advance as a security against the tenant reneging on the contract because bouncing of cheques is a criminal offence here

Hope this helps

PS: the best site to go about the house search is dubizzle.com


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## Dubai 2106 (Jan 22, 2010)

mrbig said:


> Depends on the owner.
> Some want 1 check year paid up front
> some want 2 checks year split in 2 payments
> some want 3 checks year split 3 payments
> ...


+obviously,all tohse cheques will be in differant dates based on the interval stated!


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