Renting in Dubai: What are the Extra Costs?
Renting in Dubai is not just about the Rent and the Deposit; you will also need to consider expenses like Ejari, DEWA, agency fees, and more. Before you start your search on property websites for your next home, it is important to understand the additional costs involved in renting which need to be factored into your budget and added to your annual rental expenses. Make sure you are fully informed to avoid any unexpected surprises and ensure a smooth rental experience.
Security Deposits
In Dubai, a security deposit is paid at 5% of the annual rent for an unfurnished apartment and usually at 10% for a furnished apartment. For example, if the annual rent is AED 80,000, an unfurnished apartment’s deposit would be AED 4,000 while the deposit for a furnished apartment would be AED 8,000.
Agency Fees
If you use an agent to find your home, their services will cost you 5.25% i(ncluding VAT) of the apartment or villa’s annual rent. Some brokerages charge a minimum of AED 5,250 (including VAT) where rents below AED 100,000 are agreed.
Make sure you check the agent’s fee before you start working with them. Perhaps ask friends and colleagues for recommendations. Agents get a bad reputation in Dubai, but there are plenty who will help you search for the most suitable home.
Chiller Fees
Many apartment communities in Dubai use district cooling systems to reduce electricity consumption because of air-conditioning. District cooling services are provided by companies like Empower or Emicool in Dubai. Tenants pay a consumption charge.
If mentioned in the contract, tenants must register with the district cooling company serving their community, which often necessitates a refundable security deposit which is usually a minimum of AED 2,000..
Some apartments are “chiller-free” where the landlord pays the air conditioning in the community service charges.
DEWA
DEWA (the Dubai Water and Electricity Authority) manages Dubai’s water and electricity supply. When renting an apartment for the first time, you need to pay an activation fee for these services. This usually costs AED 2,000 for an apartment and AED 4,000 for a larger rental such as a villa, plus approximately AED 110 connection fee. The deposit is fully refundable, it’s just another of those costs to budget for upfront.
Ejari
Ejari is a Government registration system that regulates the Tenancy Contract between the landlord and tenant, making it a mandatory step. Registering the Contract at Ejari costs a flat rate of approximately AED 220 to AED 240 for any kind of property.
Housing Fees
All expats in Dubai have to pay a 5% Housing Fee to Dubai municipality for services such as cleaning, pollution reduction, food safety etc. The cost is 5% of your annual rent, divided over 12 months and included in the DEWA invoice.
