Let’s skip past the part where you call numerous brokers to find out the property isn’t available. Let’s skip past the part where you hear the infamous line ‘the doors open, look and call me if you like it’
Let’s jump to the part where you have found your new home and are negotiating the rent.
No doubt you have already completed some due diligence, you’re aware of what that type of property, in that location, is being advertised for. It’s safe to assume the home you’re currently interested in is towards the affordable end of the pricing scale.
It’s widely reported that property values, both sale, and rent, have been (and still are) on the rise. In today’s market, it’s unlikely to secure a large reduction from the advertised price, however, it’s always good to try! You’ll find you have greater bargaining power if you’re able to pay in one cheque, the lure of a large lump sum of cash being deposited can often sway a landlord’s judgment when considering a cheeky offer. Owners also like their money instantly – who doesn’t?! You’ll find there is more flexibility with the acceptable amount of rent if that amount is to be paid within days, as opposed to weeks.
Once you have negotiated the amount, the payment terms, and the start date of the lease, it’s time to get serious…. But before you do get serious, make sure the broker you’re talking to is equally as serious. You need to make sure the broker you’re talking to is in actual fact, a broker. Your minimum request before issuing any cash or cheques is to see a copy of the broker’s trade license, their RERA certificate, and the broker card for the broker you’re dealing with. it goes without saying these documents should be current and valid.
Before issuing a holding deposit (this is often requested while you are agreeing on the conditions of the lease), request a copy of the title deed; you need to be certain you are issuing the deposit to the correct owner of the property. Note the only issue this deposit to the owner, not the broker, this is a holding deposit, it is not to be banked until terms of the contract have been approved and the contract signed by both you and the landlord. You must receive a receipt for the deposit from the company, ideally, this receipt will state the deposit will not be released to the landlord until the landlord has signed the tenancy agreement.
Once the terms of the tenancy are agreed you’ll need to sign the contract and issue all required cheques. Typically, the security deposit will be banked by the landlord immediately upon signing, the rent cheque(s) dated or postdated and banked accordingly, and of course, the broker fee is now applicable. Once the landlord has countersigned you are able to register the lease with Ejari, this, in turn, is then used to register for your utilities and moving-in permit. Many of the larger, more established brokerages will have departments dedicated to managing this part of the process on your behalf.