A national or an expat, you have probably asked this question at least once ‘Should I rent or buy?’ We know the decision can be overwhelming, but we have listed a number of reasons why we think that renting in Dubai can be a good idea. This is not to say that renting is always a better decision than buying, but in some cases, it can be a more practical and a wiser option. If you still haven’t decided whether to rent or buy, maybe this will help make up your mind. Let’s discuss these reasons together.
Can you make the financial commitment?
It is always much less of a financial commitment to rent than it is to buy a property. In addition to the obvious costs, there are lots of “hidden” costs to buying a home in Dubai, especially if you are an expat; there are costs like down payments ( a minimum of 25% if you are an expat and 20% if you are a national ), land department transfer fee, broker’s commission, maintenance, and much more. If you think that these costs are too much of a financial commitment, you can always rent.
How long are you staying in Dubai?
If you are an expat or even a national, you should consider how long you will be staying in Dubai. If you are uncertain about how long you will be staying or if you have plans to relocate in the future, it is always better to rent.
Getting out of a tenancy contract in Dubai is relatively easy, definitely much easier than getting out of an ownership contract. If you finally got offered your dream job on the other side of the world, you can easily cancel your contract and move.
Can you afford to buy your dream property?
Dubai is filled with state of the art property options with amazing facilities like Downtown and Dubai Marina. If you can’t afford to buy your dream property in Dubai, you can always rent it.
Do you like where you live now?
Dubai is the land of the exquisite real estate; new real estate properties are being built every day. How can one decide where to live? Another advantage is that, with renting, you can always experience more than one spot and live more than one experience. If you don’t like where you live or if you are looking to upgrade your lifestyle, you can always move. No long-term commitments.
How much are you paying for rent?
In Dubai, rent is paid with postdated cheques. Some people think of this as a disadvantage due to the financial burdensome of having to pay in advance for a whole year. However, looking at it differently, this protects you as a tenant from any rental increase throughout the year.
What if you need to renew the contract?
Another advantage is that rental increases in Dubai are regulated by what is called the ‘rental increase calculator’. This means that rent can only increase by amounts that the calculator stipulates; landlords are not free to increase rent rates. Also, rent increase can never, in any case, exceed 20%. The landlord is obliged to inform you with any rental increases three months in advance.
What is the condition of the property?
In Dubai, landlords are obliged to hand the property over to the tenant in perfect condition. One of your rights as a tenant is to ‘test’ the property for a few days before you completely move in. during this period, you have the chance to report any problems with the air conditioners, water pipes, or any other problem that might arise. Make sure that the contract has a clause within that obviously state your right to ask for maintenance. It’s the responsibility of the landlord to fix everything for you.
What if a dispute arises between you and the landlord?
The real-estate regulatory authority (RERA) offer a rental dispute number and email that a tenant can contact to report any problem that arises with landlords and vice versa.
Finally, we wanted to emphasize that renting is not always the best option. There are two sides to every decision. In some cases, buying a property wouldn’t make sense. In others, renting wouldn’t be the wisest or most practical decisions. You should always think about it from the perspective of what is it that is best for you and your financial situation. A final piece of advice, before settling down on the decision to rent, is to familiarize yourself with the Dubai rental laws and to seek help when needed