Saturday, October 23, 2010

Dubai Property || Rental Contracts: Information on rental contracts must be entered into Ejari portal

Dubai : Property management companies and landlords must register their rental contracts immediately, otherwise it could lead to penalties and severance of utility connections.
The aim is to ensure all lease contracts and the parties to such agreements are registered and the details recorded. This will lead to the Dubai rental market becoming one of the most transparent and accountable anywhere and, at the end of the day, one of the best regulated... At a different level, full implementation of Ejari registration will enable the authorities to construct a full and accurate picture of Dubai's rental market."
First unveiled more than two years ago, Dubai's Real Estate Regulatory Agency (Rera) enforced its online-portal registration system Ejari from March 14 this year. Firms face penalties for failure to register with regulator.
http://www.ejari.ae/
http://www.ejari.ae/PublicPages/faq.aspx
Ejari is a system that is governed by RERA to make registration of rental / lease agreements easy and accessible to Owners and Real Estate Management Companies of various categories. The Ejari system provides a full portfolio of services beyond registering the initial lease agreement. Renewals, cancellations, transfers and terminations can all be logged.
Why Ejari: At a different level, full implementation of Ejari registration will enable the authorities to construct a full and accurate picture of Dubai's rental market which will play a crucial role in its planning for the future of the sector and its ability to influence such factors as the supply side of the market and ultimately the level of prices.
Anyone who belongs to the following category can register for Ejari Accounts.
1. Landlords
2. Property management company and its employees
3. Landlord representative  

Ejari account is absolutely free of charge.
One need to print the Rent approval request from the Ejari system and visit RERA for approval. Your management contract has to be approved prior to creating tenancy contract.
once your property or contract is approved you cannot modify the information.
Benefits of EJari: Ejari will ensure rental agreements are fair and transparent to the parties involved and that their terms and conditions are given full weight. The launch of Ejari shall bring the Dubai's rental sector to be one of the best regulated rental market in the world and best practice in the norm across Dubai's rental sector.
For property management companies it is a straightforward process. A one-day training course for Dh500 gives them exposure to the Ejari software and a password to subsequently use for the system to register properties that they manage, at Dh160 a unit.
For individual landlords who prefer to rent out their property without the assistance of a company, the process seems less enticing. Although a one-off Dh500 isn't unreasonable, some may not have the time to go through a full-day training course or simply not be around to do it.
Tenants also face an uphill struggle if their landlord refuses to use the system, as they can't register. For one, should a dispute arise, the Rental Committee may not consider unregistered contracts.
Furthermore as per Dubai Law No. 26 of 2007, regulating the relationship between landlords and tenants, not registering through Ejari could mean tenants will be unable to get Dewa, telephone connections.
Landlords and tenants must understand that the Ejari service supports both.
Average prices
The system also helps determine average rental prices for Rera's rental index. However, landlords shying away from attending the course have no choice but to engage a property management company.
In the case of Landmark Properties it means signing the property to be managed on an annual basis and then the Dh660 would be included in the package, or as a one-off registration the landlord could save the Dh160 Ejari tenancy approval fee.
For any help or support, one  can contact RERA (for Ejari) by dialing 04-203-0544 or send an email to support@eres.ae

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