No Comments

7 Hidden Costs Of Renting An Apartment In Dubai

Renting An Apartment In Dubai

The hidden costs of renting in Dubai can add up, so it’s important to be aware of them before signing a lease. This will save you lots of quarrels with your agent or the landlord or the government offices.

1. Agency Fees

Agency fees are equal to 5% of the annual rental price plus VAT. This means that if you are renting a property for AED2,500 per month, the agency fee would be AED2,500 x 12 months x 5% = 1,500 + VAT.

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

Dubai Electricity & Water Authority (DEWA) has announced that set-up fees for utility connection will be AED2130. The new price is applicable for all new customers who apply for water and electricity connections from DEWA.DEWA has clarified that the new price is for the standard connection and does not include any additional charges that might be required for special cases. The authority also stated that 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. The Authority is always striving to find ways to improve its services and make them more affordable for customers.

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.


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.

Comments (0)