In Dubai, co-living tenants are now getting that 'minimum' space

Dubai: Residents in Dubai opting for co-living rental options find landlords are giving them more ‘space’. Or at the very least, ensuring they are provided with the ‘minimum space’.

Landlords offering co-living leases are now making a point of 5 square metres of space to each tenant. That’s as per the Dubai Municipality requirements on co-living tenants’ rights on ‘occupancy density standards’.

“Additionally, approvals from Dubai Civil Defence and Dubai Municipality are necessary for any internal partitions or modifications (made by the landlord),” said Vishal Tinani, corporate lawyer and a specialist in regulatory affairs.  

Dubai authorities have been stepping up their campaigns against illegal partitioning, whereby landlords squeeze in more co-sharing tenants into a room or apartment. In fact, landlords who break the rules are facing a ‘zero tolerance’ approach from the authorities.

According to property market sources, the market is seeing steady demand for co-living or co-sharing rental options – and those that are in full compliance with the rules. So far, there are no signs of any sudden increases in co-living rental areas anywhere in Dubai after the crackdown by the authorities.

The only visible difference is that ‘new sublet listings dropped by 30%–35%’, according to Rajneel Kumar, co-founder and Chief Operating Officer at the Rentify platform.

Instead, what the market is seeing is more exposure for licensed co-living options. Sure, they carry a higher rent than the off-market sub-leases, but that comes with the territory. Also, more landlords are adding co-leased options in areas like Business Bay, Dubai Marina, the Downtown, JLT and Al Barsha.

On co-living rentals, landlords typically ask for Dh1,000 to Dh2,000 as security deposits from the tenants, compared to Dh5,000 to Dh7,000 for a full one-bedroom unit, says Tinani.

To ensure best practices, landlords should:

* Specify the deposit amount in the co-sharing agreement.

* Issue receipts to acknowledge the deposit.

* Refund any remaining balance at the end of the tenancy, subject to lawful deductions for damages or unpaid utilities.

“All additional occupants residing for one month or longer must be registered in the Dubai Land Department system using the Dubai REST app,” added Tinani.