The Additional Costs of Renting in Dubai

The cost of renting a home in Dubai goes beyond just the lease amount—there are several additional expenses that come with it.

To avoid any unexpected surprises, it’s important to have a clear understanding of these costs so you can be fully prepared. If you’re searching for a rental property in Dubai, this article will walk you through all the extra expenses involved in renting a home in the emirate.

1. Security Deposit
2. Housing Fee
3. Agency Fees
4. Ejari
5. DEWA
6. Cooling Services
7. Maintenance
8. Key Takeaways
9. FAQs

Know Your Upfront Costs with Property Finder

When browsing properties on Property Finder, you can view estimated Upfront Costs directly on the listing page. For rentals, simply click on “Upfront Costs” to see a breakdown of estimated expenses, including the real estate agency fee, security deposit, DEWA deposit, and Ejari fee. This feature helps you plan better, budget smarter, and avoid any surprises later on.

1. Security Deposit

The security deposit is paid to the landlord to secure a property and it’s refundable when you vacate the property. If you are using a real estate agent, they will hold on to this amount until the deal is finalized.

Moreover, it’s usually the equivalent of one month’s rent. The landlord collects it as security against any damage to the property.

Besides, if you fulfill all obligations under your contract, including settling all outstanding bills at the end of the contracted term and returning the property in the same condition as received, you will receive this entire amount back.

• 5% of annual rent for unfurnished property
• 10% of annual rent for a furnished property

When you’re planning to rent a house in Dubai, the cost of the security deposit should be considered while evaluating the total money you will pay. Learn more about how to get your security back in Dubai.

2. Housing Fee (Dubai Municipality Fee)

The housing fee (also known as the Dubai Municipality fee) amount is a percentage of the annual rental. 

Besides, many properties in Dubai have a housing fee component built into their DEWA bill. If your property is one of these, you will pay the following fee. 

• 5% of annual rent paid in 12 parts, added to DEWA bills

You can consider this as part of your monthly expenses while renting in Dubai, so you would be able to plan your budget. 

3. Agency Fees

If you are renting a property via a real estate agency or a brokerage firm, you have to pay an extra agency fee; this is standard market practice. 

Agency commissions usually range from around 5% of the first annual rent, as it depends on whether the unit is commercial or residential.

• 5% of annual rent for residential property
• 7 – 10% of annual rent for a commercial property

In addition, enlisting the services of a professional real estate agent will ensure that your tenancy contract legally protects your rights and best interests. Learn more about real estate commissions in Dubai for more insights into who pays it and how it works.

4. Ejari Dubai

Ejari system is a legal contract registration platform by Dubai’s Land Department; its goal is to authenticate rental contracts and agreements between tenants and landlords. 

In addition, completing this step is necessary regardless of the property type you intend to rent. For instance, if you’re looking for a Dubai apartment for rent, Ejari’s fee varies depending on your chosen payment method, whether online or offline. 

At Trustees Centres

• Registration Fee: AED 120
• Service Partners Fee: AED 95 + its VAT

Through Mobile App or System

• Registration Fee: AED 100 (excluding VAT)
• Knowledge Fee: AED 10
• Innovation Fee: AED 10

Find out how to register your tenancy contract with Ejari in Dubai and how to download your Ejari Certificate which is needed to activate your DEWA.

5. DEWA

On the list of the extra costs for renting in Dubai is DEWA and it’s an essential one. DEWA is Dubai Electricity and Water Agency; it’s the only entity responsible for the electricity and water supply in the emirate. 

In addition, it is important to factor in the upfront costs of connecting your utilities with the Dubai Electricity and Water Authority (DEWA). Its security deposit is refundable upon vacating the property and settling your final bill.

Paying monthly utility fees is in addition to the security deposit; you have to pay DEWA deposits when renting a property. The fee is as follows:

Apartment 

• AED 2000 (security deposit)

Villa

• AED 4000 (security deposit)

Activation Charges

• Connection Fee: AED 100 for small meters, AED 300 for large meters
• Registration Fee: AED 10
• Knowledge Fee: AED 10
• Innovation Fee: AED 10

6. Cooling Services  

Chiller or cooling services are one of the most important amenities that should be offered in a residential unit; this owes to the hot weather of the emirate. In Dubai, Empower and Emicol are the main providers of such services. 

Moreover, district cooling deposits and connection fees vary according to the provider and size of the property. Accordingly, it’s better to check their websites for more detailed information. 

Points to Consider

• District Cooling or Chiller. It is essential to find out whether the property includes free district cooling or a chiller, meaning you only need to pay your actual consumption (consumption charge) of electricity to DEWA, with the remainder fees the responsibility of the landlord. 

• Payment Responsibility. Often, when you browse property listings, you will see ‘chiller free’ included in the description. This means that the landlord is willing to absorb the chiller fee and not pass this on. 

Learn more about the differences between Chiller-free and District Cooling in Dubai.

However, many landlords pass this expense to tenants via the lease contract clause, so it is important to read and understand the tenancy agreement and who is liable to pay for what before signing.

7. Maintenance  

Finally, while viewing the property that you’re going to rent, you might find that it needs some maintenance; this means extra fees for adjusting the electricity, water, walls painting, or the backyard garden. 

The maintenance fee depends on what you want to repair or change according to your preference. 

Most expats go for rentals in Dubai; if you’re new to the city and want to assess how much money it takes for residency, this comprehensive guide about the additional cost of renting in Dubai will give you an overview of planning your finances.  

Key Takeaways

Renting a home in Dubai involves more than just paying the annual rent. Tenants should budget for additional costs such as the security deposit, housing fee, agency fee, Ejari registration, DEWA deposits, cooling charges, and possible maintenance expenses.

Understanding these costs in advance helps you plan your finances accurately, avoid surprises, and choose rental properties with clearer cost structures.

 Summery for Hidden Costs

FAQs

You can also check these helpful guides for communities in Dubai on Property Finder.

Share