Dubai offers a luxurious lifestyle, state-of-the-art infrastructure, and premium real estate, allowing expats to experience the amazing city and lease a residence. Nevertheless, many of those renters are not conscious of the additional expenses connected with renting a property in Dubai, which can lead to hefty monetary pressure on individuals not ready for it. This article will analyze the various expenses of renting a residence in Dubai. We will look at the fees, taxes, maintenance, insurance costs, and any other unforeseen costs. This will let tenants know what they’re agreeing to and help them plan their budget appropriately.
It should be noted that the costs associated with renting a property in Dubai can differ based on the type of residence and its location. Professional Real estate agents in Dubai can assist you in finding the best properties. Tenants should find out the normal cost of renting a home in the area they are interested in so they can better understand what to expect.
Now, let’s dive deeper into the hidden expenses related to renting a home in Dubai.
Tenants renting a home in Dubai should know that a security deposit may be required before beginning a tenancy. This deposit is a fee that covers the landlord in case of any damage to the property or unpaid rent at the end of the lease term. The security deposit amount is typically equal to one to three months’ rent, though this may vary depending on the landlord’s requirements. It’s important for tenants to understand the purpose of the security deposit clearly and to receive a receipt for the payment of the deposit to ensure that there is appropriate documentation for the expense.
Ejari Registration Fee
Tenants renting a home in Dubai should factor in the Ejari registration fee when calculating the costs of renting. This one-time fee is required for all rental agreements in Dubai to be legally registered with the Ejari system. This government-owned platform oversees and regulates the rental market according to local laws. Landlords must also pay a fee to register their Properties for Rent in Dubai on the Ejari system. The fee for registering an Ejari contract through the Dubai REST application is AED 155 (excluding VAT). Failing to register the rental agreement may lead to legal issues and fines, so tenants should ensure their contracts are fully registered to avoid these additional costs and complications.
Real Estate Agent Fees
Tenants in Dubai should be aware that there will be a fee when using a real estate agent to find a villa or flat for rent. Generally, this fee is 5% of the total rent over a year and is the tenant’s responsibility to pay. It is, therefore, important for tenants to clarify the fees associated with their rental agreement before signing. To avoid surprise costs, tenants should agree and include the fees in the agreement. Real estate agents also assist you in listing your property in
DEWA and Municipality Fees
Residents in Dubai are obligated to pay a monthly charge for electricity and water services provided by the Dubai Electricity and Water Authority (DEWA). This fee includes a cost for connecting to the services and charges depending on consumption. An additional expense is a municipality fee, calculated as a percentage of the total annual rental amount, usually around 5%. Both the DEWA and municipality fees must be factored in when budgeting for rental properties in Dubai.
When leasing a place to live in Dubai, maintenance costs should be considered. Tenants are responsible for regularly cleaning and maintaining the rented property and any needed repairs during their tenancy. Depending on the complexity of the repair, expenses could add up. To prepare for this, the rental agreement should clearly state the responsibilities tenants must uphold for upkeep and repairs. This should specify who is responsible for electrical, plumbing, or structural repairs. Tenants should also identify and use a reliable and trustworthy maintenance service provider for prompt repairs.