Renting a home in Dubai is a major milestone for many residents, whether you're new to the city or simply moving to a new neighbourhood. But beyond the advertised monthly rent, there are certain additional expenses that tenants need to consider before starting the whole process of renting a house in Dubai. These costs can add up quickly and affect your budgeting if you're unprepared.
Connector's guide breaks down the additional costs that renters need to factor in, helping you make informed decisions before signing on the dotted line.
Getting Prepared
Dubai's rental market is fast-paced and competitive, which makes planning essential. While renting offers the flexibility to relocate and sometimes includes added perks like maintenance coverage, it's also full of fine print. From upfront deposits and government fees to moving costs and utility extras, these expenses can easily stretch your budget. Knowing what to expect ahead of time helps you avoid surprises and make smarter decisions. Here are the additional costs that you need to factor in so that you can be better prepared.
1. Security Deposit
Almost all rental agreements in Dubai require a security deposit, typically equivalent to five percent of the annual rent for unfurnished apartments and ten percent for furnished ones. This could go higher in some places. This is a refundable amount but will only be returned at the end of the tenancy, provided there are no damages beyond normal wear and tear. It’s worth noting that disputes over deposits are common, so always document the property’s condition with photos when you move in.
2. Real Estate Agent Commission
If you're using a real estate agent, which is quite common, be prepared to pay a commission fee, typically five percent of your annual rent. This fee is due upfront and is non-refundable. Some agencies also charge a fixed flat fee, so it’s worth confirming this before starting your home search.
3. Ejari Registration
Every tenancy contract must be registered with the Dubai Land Department's Ejari system. This is a legal requirement, and the registration cost is Dhs 220, usually paid by the tenant. Ejari registration is essential for setting up utilities or resolving rental disputes, so don’t overlook it. If you are planning to stay in a rented home beyond your contract period, you will have to pay the Ejari registration fee again when you renew the contract.
4. DEWA Connection Charges
Setting up your water and electricity supply with Dubai Electricity and Water Authority (DEWA) requires a refundable security deposit and a connection fee. For apartments, the deposit is Dhs 2,000 and for villas, it is Dhs 4,000. The non-refundable supply activation fee will be somewhere between Dhs 130 and Dhs 330. These costs must be paid before you move in and can be a substantial upfront expense.
5. Chiller Charges (If Applicable)
Some buildings include chiller or air conditioning costs in the rent, while others charge separately. This can be a fixed monthly fee or vary depending on usage. Make sure to check if the cooling charges are included in your rent or billed separately through providers. Some landlords may let you pay the chiller costs while reducing the annual rent. Make sure you check with the landlord prior to signing the contract.
6. Maintenance And Repairs
Many tenants assume the landlord will cover all repair costs. In reality, most contracts in Dubai include a maintenance clause where tenants are responsible for minor repairs up to a certain amount, typically Dhs 500. Anything beyond that is the landlord’s responsibility, but read the fine print. If your AC breaks down or plumbing leaks, you may find yourself footing the bill for unexpected repairs.
7. Municipality Housing Fee
Dubai Municipality charges tenants a housing fee equal to five percent of the annual rent. This is paid in monthly instalments through your DEWA bill. For example, if your annual rent is Dhs 60,000, you’ll pay Dhs 3,000 a year, or Dhs 250 per month, on top of your utility bills.
8. Moving Costs
Hiring movers and packers is often essential when relocating, especially if you're moving to or from a larger home or require additional services like unpacking, storage, or insurance. Depending on the size of your home and the services you choose, moving costs in Dubai can range from a few hundred to several thousand Dirhams. It's wise to get quotes from multiple companies and clarify what's included in their pricing.
9. Parking And Access Cards
While many residential units include one parking space, some may charge extra for an additional spot or for access cards to the building and parking area. Replacing lost cards can also come with a fee.
10. Pest Control Or Deep Cleaning
Typically, prior to moving in to a new place, the property has to go through professional deep cleaning or pest control. However, in case this wasn't done beforehand or you prefer for your own peace of mind to do it yourself, you may need to factor in the additional expense for deep cleaning into your budget. Costs for pest control and deep cleaning vary depending on the size of the accommodation.
Smart Tips Before You Sign
-
Clarify all inclusions and exclusions in your rental agreement before signing.
-
Inspect the property thoroughly and document any issues with photos.
-
Ask about cooling fees, maintenance responsibilities, and parking facilities.
-
Go over your tenancy contract carefully and prepare a budget for all the initial additional costs as well as long term expenditures.
Renting in Dubai offers flexibility and variety, but it pays to read between the lines. By being aware of these costs and planning ahead, you can enjoy your new home without any unwelcome financial surprises.