Unveiling Hidden Rental Costs in Dubai: A Comprehensive Guide for Tenants:

Understanding the unforeseen expenses associated with renting in Dubai is crucial prior to committing to a lease. This knowledge can help you avoid numerous disagreements with your agent, landlord, or government departments. These hidden costs can significantly increase your overall expenditure, so it’s important to account for them in your budget.

1. Agency Fees

In Dubai, the agency fee for renting out a property is typically between 2% to 5% of the annual rent123. However, this can vary based on the discretion of the real estate agency Bayut,Property Finde & Propertysearchuae.com
So, if you are renting your property for 150,000 AED per year, the agency fee would be:

At 2%: 150,000×1002​=3,000 AED

At 5%: 150,000×1005​=7,500 AED

So, you can expect the agency fee to be between 3,000 AED and 7,500 AED. Please confirm the exact percentage with your real estate agency as it can vary.

2. Security Deposit

The security deposit is a very important part of renting an apartment. It is required for unfurnished apartments (5%) or furnished apartments (10%). This deposit is intended to protect the landlord in case of damage to the property or if the rent is not paid on time. The security deposit is usually equal to one month’s rent but may be more depending on the landlord and the type of apartment.

3. DEWA Set up fees

The Dubai Electricity & Water Authority (DEWA) has recently announced a revision in the set-up fees for utility connections. The new fee, set at AED 2130, is applicable for all new customers who apply for water and electricity connections from DEWA.

DEWA has clarified that this price is for the standard connection and does not include any additional charges that might be required for special cases. This means that the cost could vary depending on the specific requirements of the connection.

Importantly, customers who are already using DEWA services will not be affected by the new prices. This announcement comes as part of DEWA’s commitment to providing quality service at a fair price.

DEWA is continually striving to improve its services and make them more affordable for customers. This price revision is a testament to their commitment to customer satisfaction and service excellence.
Also there is optionn you can calculate DEWA cost from DEWA cost calculator.

For more information, please visit the official DEWA website.

Please note that while this information is accurate as of the time of writing, it is always a good idea to check the official DEWA website or contact DEWA directly for the most up-to-date information.

4. Chiller Charges

There may be a chiller charge that applies to your area depending on the climate. This charge is generally for areas that require extra cooling due to high temperatures. The chiller charge helps to maintain the proper temperature for your area and ensures that your air conditioner is working properly.

5. Housing Fees

Housing fees are 5% of the annual rent split over 12 months. This means that if you’re renting an apartment for AED120,000 per year, your housing fees would be AED9000 per year or AED750 per month. These fees go towards things like building maintenance and repairs, insurance, and property taxes. While they may seem like a small amount in the grand scheme of things, they can add up over time, so it’s important to be aware of them when budgeting for your rental property.

6. Ejari

It is important to register your lease with the Dubai Land Authority (DLA) through Ejari, which costs AED220. This will ensure that your tenancy agreement is valid and enforceable under UAE law. The registration process is simple and straightforward and can be completed online. Once your lease has been registered, you will be able to obtain a Certificate of Good Standing from the DLA, which is required for many purposes, including renewing your visa.

7. Parking Fees

If you are renting an apartment that comes with reserved parking, you can expect to pay additional parking fees. These fees can vary depending on the complex, but they are typically a few hundred dollars per month. This is in addition to your rent and any other associated costs (utilities, cable, etc.). While having reserved parking can be a convenience, it does come at a price. Be sure to factor this into your budget when considering a rental unit with reserved parking.

Please note the fees listed above are as of the writing of this article. Please make sure to check the exact rates.

Conclusion

There you go. Now you know it all and you’re prepared in advance for unpleasant surprises. Though renting in Dubai may seem like a more affordable option than purchasing a home, there are hidden costs that can add up and you must make sure to learn about them in advance. 

Talk to us today to learn which option is more feasible for you.