Dubai is one of the most exciting cities in the world, offering luxury living, world-class amenities, and stunning properties for rent.
But while the rental prices may seem straightforward, there are several hidden costs that many tenants overlook.
Before you sign a lease it’s essential to know the extra expenses beyond the monthly rent.
These can include security deposits, agency fees, utility bills, and maintenance charges.
If you’re moving to Business Bay, one of Dubai’s most popular areas, or any other part of the city, knowing these hidden costs will help you plan your budget wisely.
1. Security Deposit
One of the first hidden costs you’ll encounter when renting a property in Dubai is the security deposit.
This is a one-time payment to the landlord or property management company to cover any potential damages or unpaid bills during your tenancy.
Typically, the security deposit is 5% of the annual rent for unfurnished properties and 10% for furnished ones.
For example, if you’re renting an apartment in Dubai for AED 100,000 per year, you’ll need to pay an additional AED 5,000 to AED 10,000 as a security deposit.
Is the security deposit refundable?
Yes, the security deposit is refundable at the end of your tenancy if there is no damage to the property and all bills are settled.
However, it’s essential to document the condition of the property before you move in to avoid any disputes later.
2. Agency Fees
If you’re using a real estate agent to find properties for lease in Dubai, you’ll need to account for agency fees.
In Dubai, it’s standard practice for tenants to pay a commission to the real estate agent which is usually 5% of the annual rent.
For example, if your annual rent is AED 80,000, you’ll need to pay an additional AED 4,000 as an agency fee.
Can I avoid paying agency fees?
While it’s possible to find apartments for rent directly from landlords it can be challenging, especially in high-demand areas like Business Bay.
Using a reputable real estate agent will save you time and ensure you find a property that meets your needs.
3. DEWA (Dubai Electricity and Water Authority) Connection Fees
When you move into a new property you’ll need to set up your electricity and water services with DEWA.
This involves a one-time connection fee which is typically AED 2,000 for apartments and AED 4,000 for villas.
You’ll also need to pay a security deposit to DEWA which is calculated based on the size of your property.
For a studio apartment the deposit is usually AED 1,000, for a one-bedroom apartment it’s AED 2,000.
Can I transfer my DEWA account to my previous property?
Yes, you can transfer your DEWA account if you’re moving to Dubai. But you’ll still need to pay the connection fee and security deposit for the new property.
4. Ejari Registration Fee
Ejari is a compulsory system for registering all rental contracts in Dubai. It protects both tenants and landlords.
The Ejari registration fee is relatively small, AED 220 but it’s an essential cost to consider when budgeting for your new home.
What documents do I need for Ejari’s registration?
You’ll need a copy of your tenancy contract, passport, visa, and Emirates ID. Your landlord or real estate agent can assist you with the registration process.
5. Maintenance and Service Charges
Some properties for rent in Dubai include maintenance and service charges in the rent, others may require tenants to pay these fees separately.
These charges cover the upkeep of common areas, security, and other building amenities.
The cost can vary significantly depending on the building and its facilities. In Business Bay, for example, service charges can range from AED 10 to AED 30 per square foot annually.
Are maintenance and service charges included in the rent?
This should be clearly stated in your tenancy contract. If not, ask your landlord or real estate agent before signing the contract.
6. Moving Costs
Moving into a new property can be expensive especially if you’re hiring a professional moving company on MetaHomes.
The cost of moving within Dubai can range from AED 500 to AED 3,000 depending on the size of your move and the distance.
And if you’re moving from another country, you’ll need to factor in shipping costs, customs duties, and insurance.
Can I negotiate moving costs with the moving company?
Yes, most moving companies are open to negotiation especially if you’re moving during the off-peak season. Always get quotes from multiple companies and compare their services.
7. Furniture and Appliances
If you’re renting an unfurnished apartment, you’ll need to budget for furniture and appliances.
Even if you’re renting a furnished apartment, you may find some essential items missing or not to your liking.
The cost of furnishing an apartment can vary widely but you can expect to spend at least AED 10,000 to AED 20,000 for basic furniture and appliances.
Are there any affordable options for furnishing my apartment?
Yes, there are several affordable options in Dubai including second-hand furniture stores, online marketplaces, and rental services. You can also find great deals during sales events like Dubai Shopping Festival.
8. Internet and TV Connection Fees
Setting up internet and TV services in your new home can also add to your initial costs. Most providers charge a connection fee which can range from AED 100 to AED 500 depending on the package you choose.
You may also need to pay for a router or set-top box if it’s not provided by the service provider.
Can I transfer my existing internet and TV services to my new property?
Yes, most service providers allow you to transfer your existing services to a new address. But you may need to pay a transfer fee and there could be a waiting period for the connection to be activated.
9. Parking Fees
If you own a car you’ll need to consider parking fees when renting in Dubai. While some properties include a parking space in the rent, others may charge an additional fee.
In Business Bay for example parking fees can range from AED 500 to AED 1,500 per month depending on the building and location.
Is street parking available in Business Bay?
Street parking in Business Bay is limited and often requires a paid permit. It’s usually more convenient and secure to rent a parking space within your building.
10. Community Fees
Some communities in Dubai charge extra for amenities like gyms, swimming pools, and parks.
These fees vary depending on the community and the facilities. In Business Bay for example some buildings charge a monthly community fee of AED 200 to AED 500.
Are community fees mandatory?
Yes, if you want to use the community amenities you’ll need to pay the applicable fee. Ask about these costs before signing your tenancy contract.
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