Essential elements of a Dubai tenancy contract
A valid tenancy contract in Dubai must contain the following elements: full names and Emirates ID numbers of landlord and tenant, a detailed property description (address, floor, unit number, area), the rent in AED and the payment method (number of cheques), the exact lease period (start and end date), the security deposit and terms for its return, terms for the allocation of maintenance, house rules and restrictions, the notice period and renewal conditions.
The contract is drawn up in English as standard. In any dispute before the Rental Dispute Settlement Centre, the Arabic version prevails; we ensure both versions are legally watertight. After signing by both parties, the contract is registered with Ejari.
Ejari registration: procedure and costs
Ejari registration is legally mandatory for every tenancy contract in Dubai. Registration costs AED 220 and can be completed online through the Dubai REST app or at an Ejari Typing Centre. The required documents are: the signed tenancy contract, Emirates ID of both parties, the Title Deed (proof of ownership) and a passport copy of the owner.
Upon registration you receive an Ejari certificate with a unique reference number. This certificate is required for the DEWA connection in the tenant's name, for applying for a residence visa at the address, and as evidence before the Rental Dispute Settlement Centre. Without Ejari your contract is not legally enforceable. Augusta Properties handles the complete Ejari registration as part of our letting process.
The cheque system: 1, 2, 4 or 12 cheques
In Dubai tenants pay rent via postdated cheques. The number of cheques per year is negotiable and directly affects the attractiveness of your property. One cheque per year (the full annual rent upfront) offers you maximum financial security, but limits the pool of potential tenants, as not everyone can pay a full year in advance.
Two cheques (semi-annual) is a popular middle ground. Four cheques (quarterly) is the most common and offers a good balance. Twelve cheques (monthly) attracts the broadest pool of tenants but gives you less security upfront. A rule of thumb: tenants paying in fewer cheques expect to pay somewhat less total rent: the difference is typically 5–10% between one and twelve cheques. We advise on the optimal cheque structure for each property and target audience.
Security deposit: standard amounts and procedures
The security deposit in Dubai is 5% of the annual rent for unfurnished homes and 10% for furnished homes as standard. This amount is paid at the start of the contract and refunded at the end, less any damage or outstanding bills.
The deposit is typically paid via a separate cheque or bank transfer. We document the condition of the property at check-in with a detailed inspection report including photographs. At check-out we compare the condition against this report. Normal wear and tear is the owner's responsibility; damage caused by the tenant is settled against the deposit. The remaining deposit is refunded after the final DEWA settlement, typically within five to ten working days.
RERA rent increases at contract renewal
At contract renewal, RERA determines the maximum permitted rent increase through the RERA Rental Index Calculator. This tool compares your current rent with the average market value in your building and community. The scale is as follows: up to 10% below market value: no increase permitted; 11–20% below: maximum 5% increase; 21–30% below: maximum 10%; 31–40% below: maximum 15%; more than 40% below: maximum 20%.
You must notify the tenant in writing of any intended rent increase at least 90 days before the end of the contract. Without timely notice, the contract renews automatically on the same terms. We monitor the RERA Rental Index for all properties under our management and advise you proactively on the optimal increase strategy.
Dispute resolution through the RDSC
The Rental Dispute Settlement Centre (RDSC) is RERA's specialized tribunal for rental disputes. The RDSC handles matters such as rent arrears, unauthorized rent increases, refusal to vacate the property and breach of contract. The procedure is relatively fast (15–30 working days) and costs are limited.
The filing fee for an RDSC case is 3.5% of the annual rental value, with a minimum of AED 500 and a maximum of AED 20,000. The RDSC rules on the basis of the Ejari-registered contract and the applicable RERA legislation. Rulings are binding and enforceable. Augusta Properties represents you at the RDSC on the basis of your Power of Attorney.