Dubai landlords will have to secure government permission before letting their properties from next year, as part of a drive to regulate the booming rental market.
Few newspapers quoted the Land Department as saying that freehold property-owners would first have to apply for a permit to lease their property, then officially register any rental contract drawn up with a tenant. The Land Department could then impose restrictions on the terms of a lease, including the number of tenants allowed per unit and what type of tenants can occupy it, the daily added.
“The idea is at an early stage .... Eventually, we want to create more regulation and transparency of the rental market, which will give confidence to tenants,” it quoted Mohammad Sultan Thani, the director of development and marketing at the Land Department, as saying. “It will also give us a better understanding of the market, such as the total number of properties being rented out.”
Dubai’s newly-created Real Estate Regulatory Authority (RERA) said earlier this month it planned to introduce long-term property rental contracts of three to five years in a bid to stabilise rising rents.
Dubai currently imposes a 7% rental cap, but most rental contracts are no more than one-year long so the landlord is able to hike the rents beyond the cap when tenants change. Many landlords refuse to renew expiring contracts.
Rental prices have risen so much in Dubai that many people are forced to share accommodation, renting one room in a house or bed space in a dormitory. Source
Few newspapers quoted the Land Department as saying that freehold property-owners would first have to apply for a permit to lease their property, then officially register any rental contract drawn up with a tenant. The Land Department could then impose restrictions on the terms of a lease, including the number of tenants allowed per unit and what type of tenants can occupy it, the daily added.
“The idea is at an early stage .... Eventually, we want to create more regulation and transparency of the rental market, which will give confidence to tenants,” it quoted Mohammad Sultan Thani, the director of development and marketing at the Land Department, as saying. “It will also give us a better understanding of the market, such as the total number of properties being rented out.”
Dubai’s newly-created Real Estate Regulatory Authority (RERA) said earlier this month it planned to introduce long-term property rental contracts of three to five years in a bid to stabilise rising rents.
Dubai currently imposes a 7% rental cap, but most rental contracts are no more than one-year long so the landlord is able to hike the rents beyond the cap when tenants change. Many landlords refuse to renew expiring contracts.
Rental prices have risen so much in Dubai that many people are forced to share accommodation, renting one room in a house or bed space in a dormitory. Source
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