Costs of Renting Property
Remember to include the additional costs of renting property in Dubai. They can add up to a minimum of 15% of the annual rental.
It’s never easy trying to juggle the ‘one cheque’ payments with the additional fees and that’s just to start. After that you need to organise Ejari, yet another cost. All rather daunting which is why we’re writing guides that will take you through the arduous tasks and difficult situations to come out the other end, happy!
Apart from the actual rental price there are additional costs of renting property in Dubai of which you should be aware:
In nearly 99% of cases this is normally 5% of the annual rental and paid to the agent. Sometimes the agent shares the commission with another agent so you will be asked to provide 2 cheques or cash. Always, always, always get a receipt and make sure you’re paying to the right person (remember the Broker’s Card!) Recently, agents have been asking for a minimum fee of anything between AED 4,000 and AED 5,000. They feel that the 5% fee on the lower priced rentals is not enough.
Again, this is usually 5% of the annual rental which is returned to you at the end of the contract. The best way to save any arguments at a later date is to take photographs of all the rooms and any items which are broken or damaged. If the property is furnished expect to pay a higher deposit.
Until very recently you would need to pay a deposit of AED 1,000 for a flat and AED 2,000 for a villa. BUT the media announced recently that there is to be an increase in the deposits paid: The deposit for an apartment is now AED 2,000 and for a villa AED 4,000. The deposit will be returned at the end of your tenancy as long as you apply for a final bill and pay the account. The final amount can be taken from the deposit but you must speak to DEWA to arrange this. Keep the receipts as you will need them for Ejari registration.
EMICOOL or other AIR CONDITIONING PROVIDER
Emicool supplies district cooling to a number of areas including Motor City and the Green Community. You will need to pay a minimum deposit of AED 1,000 which increases depending on the number of bedrooms and whether the property is a villa or an apartment.
DU and ETISALAT
The deposits for these connections vary depending on the package you take but be prepared to pay deposits of around AED 500.
The housing fee is added to your DEWA account so don’t be surprised when you suddenly get a bigger monthly bill. This charge is also 5% of the annual rental.
This means that the minimum extra payment per annum is 15% of the annual rental. This can be considerable. For example if you are renting a property at AED 250,000 per annum then the minimum extra charges are AED 37,500 plus the deposits for the utilities.
The advice provided in our columns does not constitute legal advice and is provided for information only. Readers are encouraged to seek appropriate independent legal advice.
« Back to Dubai Sherpas
A great place to live and a great place to work. If you're thinking of setting up a business in Dubai, you've come to the right place. Information can be provided on all aspects of business incorporation in Dubai. Contact us now.