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If you are relocating to Dubai and renting a property in Dubai, there are certain costs that you expect to pay, such as agency fees, deposits, and that all-important first rental payment. However, there are some additional costs of renting that you’ll need to factor into your budget. Fortunately, rental prices in Dubai are affordable when compared to other cities around the world, but do include the following additional costs so that you’re not taken by surprise.

Security deposits

The average cost of security deposits is 5% of the annual rent for a furnished or unfurnished property. This is refundable when you leave, as long as there are no additional costs incurred through damage to the property. As long as the property is in exactly the same condition when you leave as when you arrived, you should receive the full amount back.

Agency fees

You’ll probably have already factored in agency fees if you’re renting through a traditional real estate agent or broker rather than a private let. To get all the benefits of an agency that takes care of all the paperwork for you, expect to pay around 5% of the annual rent in fees or a flat fee of 5,000 + vat.

Utility charges (DEWA)

You’ll have to pay the following for connection to water and electricity:

Security deposit (between AED 2,000 and 4,000 depending on whether it’s an apartment or a villa) – this is refundable when you leave the property and pay your final bill
Connection cost (between AED 110 for an apartment and AED 300 for a villa)
An administrative fee of AED 30
Connection and admin fee of AED 230

Housing fee

Not all property in Dubai has this charge attached, but do check your agreement or you could end up paying an additional 5% of your annual rent (paid in monthly installments). This is part of your DEWA agreement.

Ejari Fees

You’ll need to register your tenancy agreement with the Ejari system, which is a contract platform maintained and run by the Dubai Land Department. Without this registration, your tenancy agreement is not authenticated or legally binding. You’ll pay either AED 220 at a typing center or AED 172 to register via the mobile App.

Chiller fees

Dubai is hot. Very hot! So air conditioning is an absolute essential, especially in the summer. Chiller fees cover air conditioning so it’s important to check whether your agreement includes ‘free district cooling or chiller’. If it does then you’ll only have to pay the actual consumption electricity charge to DEWA, while the landlord pays the Demand charge, District cooling deposits and connection fees, and Fuel Surcharge. Makes sure you check your contract carefully to make sure you know who is responsible for what charges.

Maintenance fees

You expect your Dubai rental property to be in pristine condition but throughout the year there may be ongoing maintenance to keep it that way. Some developers recoup these costs with an annual maintenance fee. While technically these fees should be paid by the landlord rather than the tenants, you may find that some filter that cost through to the tenant via hidden clauses in the first year.

The bottom line is to check, check, and check again to make sure you are fully aware of all of the costs of renting in Dubai. Don’t forget to include other expenses such as moving costs and storage if you need to put some of your belongings in a storage rental.

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What are the additional costs of renting a property in Dubai?