Hidden fees to be aware of when renting a property in Dubai

Hidden fees to be aware of when renting a property in Dubai

Is renting in Dubai cheap or costly?

Being a Real Estate Consultant myself, I have faced this question a lot of times from interested renters who want to rent property in Dubai for the long term.

When renters are looking for a property in Dubai they should figure out whether the apartment is perfect for single individuals, families or a couple in the first place as it is equivalent of winning half your battle.

In the next phase, the paperwork will begin along with discussions on the rents or additional costs and setting the terms and conditions that are suitable for both the parties.

Before signing the contract both the parties should clarify who is going to pay for what. This is important because apart from the rent there are other hidden costs imposed on the tenants.

Here, I have listed the hidden fees that are associated with renting property in Dubai to guide you through the costs you should be aware of before signing the contract.

1. Agency Commissions:

There are many agencies that are hunting down property to rent in Dubai for expats to help them find the best accommodation in this luxurious city within an affordable cost.

However, agencies don’t work for free so they will charge you 5% of the first annual rent based on their own standard or a minimum agency fees that could range between 3,000 AED – 5,000 AED.

2. Ejari Fees:

Ejari now offers full online services for rental contracts.

Once you have rent a property in Dubai, the contract has to legalize under the Ejari system run by Dubai’s Land Department. So you will have to pay a registration fee of AED 195, in order to authenticate your rental property.

3. Dubai Municipality Fees:

Dubai Municipality fee is 5% of the annual rent which is spread over the 12 months period. You will find this fee on the Dubai Electricity and Water Authority (DEWA) bills.

4. Security deposit:

Security Deposit is the protection money that your landlord will take from you in order to resolve unexpected issues like property damage or breach of lease in the future.

The deposited amount is equivalent to one month’s rent and is refundable when you vacate the property. Some landlords may deduct a certain amount from the deposit for making minor or major repairs.

5. Gas Connection Fees:

If there is a need to take a new gas connection for your rented property (Some communities/buildings have a separate service provider) then you will be paying this fee depending on the company providing the gas services to your building.

6. Etisalat / Du Fees:

To get uninterruptible access to internet connection, TV and landline services you are required to set up an account with Etisalat or Du, depending on the location of your rental property.

The installation costs of Etisalat and Du will vary a lot depending on the type of router, internet speed or TV packages, you choose from their services.

7. Chiller Fees:

Some communities/buildings have third party chiller service providers like Emicool, so make sure to find out if your next rental property in Dubai is Chiller free or not.

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