Last updated: August 05, 2025
Dubai: Property owners and landlords in Dubai who are renting out units – or plan to – must enter details of any changes they have made to the property to get their new ‘Ejari’ rental contracts. This is as per a new update sent out by Dubai Land Department.
For property owners, entering such details is important especially under Dubai’s ‘smart’ Rental Index launched at the start of this year. Under this, landlords and building owners must set their rents based on the building’s ‘star rating’, which looks at the common areas, facilities that are provided, general upkeep of the properties, etc.
This is a drastic change from the earlier Index, which went by what the average rentals are in a particular location.
The new process applies essentially to ‘non-freehold’ property assets.
What should property owners do?
* Go into the property details section ‘before starting the tenancy contract process’.
* Update the ‘property, usage, type field’.
* If the new usage type matches the official records of Dubai Municipality, the system will accept the change. And allow the landlord to proceed with the tenancy contract creation or renewal.
* Landlords must make sure the modifications are carried out when the property is vacant.
Since the new Dubai rental Index went live, many landlords and building owners have rushed to upgrade their properties and top up their features, to try and ensure they can ask for rents that meet the market average for their areas.
In many cases, landlords had to slash their rents because their current star rating came in lower.
“The new requirement for Ejari allows to distinguish the rents of units that are refurbished and those that are not,” said Eima Hajimalan, Manager at GCP Properties.
A chance to level up
According to industry sources, there are two major outcomes from landlords having to add these new details.
Tenants get a full disclosure on what’s been done and then it’s up to them to decide whether they should sign up with that landlord at the rents being quoted.
For landlords in older buildings, it means a chance to upgrade properties and have a better shot of improving their rental yields.
“There have been lots of instances where the tenant has shown the star rating to justify why landlords should cut their rents,” said a leasing agent. “And landlords had to do so because if they went to the Rental Disputes Centre, they would have been told to lower rents.
“Modifications give them a chance to level up with market averages.”
