Renting in Abu Dhabi

Apr 25, 2017

Renting in Abu Dhabi

A guide for people looking to rent in this cosmopolitan hub.

Image by Mathias Apitz via Flickr

Very important information to read:

This article is intended as a preliminary guide only and refers to some but not all elements required to consider in detail prior to starting any property dealings or due diligence. Property dealings are often complex, especially in foreign countries and we highly recommend you seek independent professional advice... read more...

Abu Dhabi is the capital of the UAE, the largest emirate and has a great variety of properties for rent. Residents can choose to live on one of the many islands on the coast of Abu Dhabi, further inland near the Sheikh Zayed Grand Mosque and airport or even further in towards the border in Al Ain. Abu Dhabi has a lot to offer its residents which includes excellent ocean views from the many islands on the coast to the the greenery of Al Ain and a generally modern vibrant cosmopolitan. Apartments and villas in Abu Dhabi remain the most abundantly available and most popular.

Who can rent in Abu Dhabi?
Foreigners are allowed to rent in Abu Dhabi, but they must have a residency visa, available here.

The landlord will need to apply for a Tawtheeq (Tenancy Contract Registration) which is necessary to transfer the utilities into the name of the tenant at Abu Dhabi Distribution Company (ADDC) or apply for a parking spot with Mawaqif, the capital's parking scheme.

Apartments
Apartments for rent in Abu Dhabi range in size from studios, 1 and 2 bedroom apartments right up to 5 and 6 bedroom apartments, however these tend to be in short supply. Areas most popular with apartment renters in Abu Dhabi include Al Reem Island, Khalifa City, Al Raha Beach, Corniche Road, Al Reef, Al Khalidiya and Al Ghadeer. Find more on these areas here.

Villas
Villas for rent in Abu Dhabi are typically large and spacious, even the 2 and 3 bedroom villas. It is not uncommon to find 6 and 7 bedroom villas in Abu Dhabi as they cater for families who need the space and these can be upwards of 1500 square metres. Villas are available for rent throughout Abu Dhabi and popular areas include Khalifa City, Al Reef, Mohamed Bin Zayed City and Al Raha Gardens.

One can find a mix of furnished and unfurnished properties for rent in Abu Dhabi and whilst a furnished home will attract higher rent, it is convenient. Unfurnished properties are most common and suit people who prefer to choose their own appliances and furniture. Abu Dhabi is home to an IKEA and loads of stores that make kitting out your home very easy.

In 2013, Abu Dhabi abolished the rent cap which was a regulatory measure to limit rental increases to no more than 5% per year. As much as this gives landlords every chance to increase rent of their property, it also means the market highly controls the price of rent. It is in the landlord's best interest to maintain rent at manageable levels and in recent times, many landlords have opted to offer more flexibility such as quarterly cheque payments, freezing rental increases or lowering rental amounts for their property.

For more on rental costs for apartments and villas in Abu Dhabi, click here.

Process of renting in Abu Dhabi
Once you have viewed various potential places and have chosen which one you want, speak with your estate agent to guide you on what to offer and present it to the landlord.

Make an offer. Once the offer is accepted, you will receive an Offer Letter, which shows the rental amount, terms of payment, deposits, and usually reserves the place for you for three working days. If you fail to pay the deposit in this time, the place may be released back into the market.
Sign the tenancy agreement provided by the landlord, and give them the rental cheque(s) for the whole year.
Have the landlord generate a Tawtheeq Agreement to register your tenancy with the Municipality.

Fees when renting in Abu Dhabi

Deposit is usually 5% of the total year’s rent
Rent is usually given in post-dated cheques
Tenancy Assistance Fee is charged by agents usually 5% of the total year’s rent
Fee for drawing up the contract
Home Insurance
Tawtheeq registration fee

Find more information on the process of renting in Abu Dhabi here.

Renting in Abu Dhabi facts

Rent is paid annually. Rent is paid annually. Renters are required to pay a year’s rent upfront in the form of a single cheque. Occasionally, a landlord or agent may accept two cheques – one for the first six months, one to be cashed six months later. If you’ve paid a year upfront and signed a contract, Article 21 of the Tenancy Law states you must fulfil your obligation – even if you’re not granted a visa or you lose your job. If this happens, talk to your landlord and try to come to an agreement, such as finding a replacement tenant.
White goods are not necessarily included. When you negotiate to rent a villa or apartment, check with the agent what is included, or you may receive a shock that it may not include carpets, curtain rails, a fridge, freezer, washing machine, dryer or even a stove.
Unmarried couples cannot live together. Local law does not allow unmarried and unrelated members of the opposite sex to live together. Under Article 356 of the UAE Penal Code, living with a person of the opposite sex could result in a minimum of a year in jail. Only one adult is allowed in one bedroom, and a maximum of six people are allowed in each villa to avoid overcrowding.
Landlords can increase the rent to whatever they like. Prior to November 9 2013, the Tenancy Law meant landlords were not allowed to increase rent by more than five percent each year. The Executive Committee, the body that removed this cap, advised landlords to charge market rate, and since the rental cap was abolished, rent has increased by approximately 16 per cent.
You must give your landlord two months’ notice. Article 20(3) of the Tenancy Law says you must give two months’ notice, best sent in an email, before your lease expires and request the delivery receipt option – or by recorded delivery, so you can prove they have received the notice. Your landlord is required to do the same. If you reach the end of your tenancy and neither party has altered the terms of the tenancy agreement, then it will automatically renew on the same terms.
Landlords can throw you out for no reason. As long as you’re given proper notice, your landlord is not required to give you a reason for asking you to leave, according to Article 24 of the Tenancy Law.
Subletting is illegal. Unless the landlord authorises it in writing, subletting, where you rent from another renter, is not permitted. The penalty is eviction with two months’ notice.

Precautionary advice
According to Better Homes, there are a few things to be aware of when buying property in Abu Dhabi:

Whether you are buying or renting a property from landlord or you are going to sell and rent your property to tenants, ensure this to make your contract in written form. Never assume that party you are dealing with will follow verbal promises.
If you are going to make any kind of real estate property deal for the first time, it's better to take advice from experienced professionals. Experienced and qualified investors and professionals will help you to estimate the real value of the project or property for which you are investing your money. They will also help you to identify the ambiguity in a contract. Professional suggestions will surely protect you to make doubtful deals.
Before making final decision to invest in any property development project, it is good to observe major property development projects. You can also find information about common real estate scam cases via media. Usually real estate fraudsters try to use same technique to deceive people. This makes it little easy to identify scam property deal.
Try to work with certified professionals. It is critically important to work with authorized real estate agents and property management companies. Moreover, if you are individually selling or renting your property to a buyer or tenant, make sure about his employment and bank balance. If person you are dealing with show a complex background be careful then, he may be a scam artist.
Always be ready to quit any real estate deal, even if the offer is too good. In case you don't get satisfactory answers to any of your questions related to the property you are going to buy or rent. Keep it in mind real estate deals must be profitable for both the parties. Don't focus only on what you will be getting after the deal; also consider what other party will get at the end.
Keep an eye on your bank accounts; you will also become victim of identity theft that may lead to involve you in sort of corruption and fake bank transactions. Scam artists can open fake accounts with your name and make scam deals on your name. Maintain proper data of your accounts and properties you possess to avoid such incidents of identity thefts.
Avoid paying beyond your capacity to pay for a property. Real estate scams also betray buyers and sellers showing them urgency to sell or purchase assets and encourage them to pay extra money for the property or finalizing sale deal below actual market prices. It is important to consider correct value of property ad your budget limits.

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