Thinking about renting in Dubai? Be aware of these hidden costs!
- You’ll need a security deposit between 5% and 10% of the annual rent.
- Agency fees can add up to 5% of your annual rent.
- Don’t forget the DEWA fees for water and electricity connections.
- There are fees for housing, Ejari registration, chiller services, and more.
Security deposit
Renting a property in Dubai requires more than just the annual rent. First up, you need to lay down a security deposit ranging between 5% and 10% of the annual rent. This deposit ensures you stick to the rental agreement and take care of the property.
Agency fees
Next, if you use a real estate agent, be prepared to shell out an extra 5% of the annual rent as agency fees. This guarantees that your tenancy contract legally safeguards your interests.
DEWA fees
You’ll also need to budget for DEWA fees which cover water and electricity. This includes a refundable deposit (AED 2,000 for apartments, AED 4,000 for villas) and a non-refundable connection fee (AED 100 for small meters, AED 300 for large meters).
Housing fees
Don’t forget the Housing fees added to your DEWA bill. This is 5% of the annual rent, paid in monthly installments. Another essential cost is the Ejari registration fee, approximately AED 220, to legitimize your tenancy contract with the Dubai Land Department.
Chiller fees
For cooling in Dubai’s heat, you also have chiller fees, composed of a consumption charge, demand charge, and fuel surcharge. Landlords sometimes absorb these costs, but it’s crucial to clarify this in your tenancy contract.
Lastly, there may be other miscellaneous fees including penalties for returned checks. Ensure you’re comfortable with these terms before signing your contract.
Knowing these additional costs can help you budget effectively and avoid surprises when renting in Dubai.