Long-term lease
A long-term lease normally means a standard residential tenancy of a year, registered with the authorities; in law it can also mean a lease of 10 to 99 years.
What Long-term lease means for a buyer
The phrase has two meanings in the UAE, and they should not be confused.
The everyday meaning: an annual tenancy. Most homes are let unfurnished on a 12-month contract, registered in Ejari in Dubai or Tawtheeq in Abu Dhabi. Rent is quoted per year and traditionally paid in advance by post-dated cheques, anywhere from one to twelve; fewer cheques usually earn a lower rent. The tenant pays utilities and the housing fee, and the landlord pays service charges and major maintenance. The tenant also lodges a deposit.
Dubai law gives tenants considerable security. A tenancy renews on the same terms unless either party gives 90 days' notice of a change before expiry. Any rent increase is capped by the rental index. A landlord who wants the property back to sell it or live in it must give 12 months' written notice through a notary public or by registered post. An investor should therefore not assume a let property can be vacated or re-priced quickly.
The legal meaning: a long lease. Dubai's property law also uses the term for leases of more than 10 and up to 99 years, which are registered with the Dubai Land Department and behave like a form of ownership. That is covered under leasehold.
The alternative to an annual tenancy is a short-term rental, let by the night under a tourism permit, with different income, costs and rules.
Guides that use this term
Where Long-term lease comes up in practice, with the costs, rules and steps around it.
Questions about the buying process?
An adviser can explain how this applies to the property you're considering.
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