New Ejari Rules You Need To Know
Dubai’s rental market has just introduced an important update for property owners and landlords. Under a new rule from the Dubai Land Department (DLD), any landlord renting out a property or planning to, must enter details of any modifications made to the unit before getting a new Ejari rental contract.
This change ties directly into the city’s smart Rental Index, which was launched earlier this year. The updated index assigns each building a star rating based on:
- Quality of common areas
- Facilities provided
- Overall upkeep and maintenance
The new rating system impacts how much rent a landlord can legally charge.
What’s Different About the New Rental Index?
Previously, the Rental Index determined rent based solely on the average rental prices in a specific location. Now, the property’s condition and features matter just as much as if not more than its location.
This means a well-maintained, upgraded property could command higher rent than a poorly maintained one in the same area.
The change currently applies mainly to non-freehold properties.
Steps Property Owners Must Follow
If you’re a landlord in Dubai, here’s what you need to do before creating or renewing a tenancy contract:
- Go into the property details section before starting the tenancy contract process.
- Update the ‘property, usage, type’ field in the Ejari system.
- Ensure that the new usage type matches the official Dubai Municipality records.
- Make these updates when the property is vacant; modifications cannot be entered mid-tenancy.
Once the system verifies your updates, you can proceed with the tenancy contract creation or renewal.
Why This Matters for Landlords
Since the smart Rental Index was introduced, many landlords have rushed to upgrade properties adding features, improving facilities, and refreshing interiors to secure a higher star rating and justify competitive rent prices.
For landlords in older buildings, this is a chance to increase rental yields by improving their property’s rating.
Failing to do so could mean having to slash rents if the property scores low in the new index. In some cases, tenants have even used the star rating to successfully argue for rent reductions at the Rental Disputes Centre.
Benefits for Tenants
For tenants, this update means greater transparency. They’ll know exactly what improvements (if any) have been made to the property before signing the lease.
Armed with this information, tenants can make better decisions about whether the rent being quoted matches the property’s condition and facilities.
A Win-Win Opportunity
This new requirement creates two positive outcomes:
- Tenants get a clear picture of the property’s value.
- Landlords have a strong incentive to upgrade and maintain their properties to remain competitive in the market.
Final Thoughts
Dubai’s updated Ejari process isn’t just an administrative formality it’s a strategic opportunity. By documenting and improving property conditions, landlords can boost rental income while offering tenants better living standards.
In a market where star ratings influence rent prices, every improvement counts. For landlords, now is the time to level up and for tenants, it’s the perfect moment to demand value for money.
Click here to learn about latest projects
Click here to meet the team
