Dubai: Congratulations! You have found the perfect home and are ready to sign the lease with your landlord. But hold on – there are a few additional costs to consider beyond the rent. Understanding these fees will help you budget effectively and prepare for additional charges you might face down the line.
1. Ejari
Cost: Dh220
Ejari is a registration system for residential and commercial leases by Dubai’s Real Estate Regulatory Agency (Rera). Once you have registered your lease contract through the Ejari system, the process will allow you to complete the following processes:
- Getting water and electricity connection through Dubai Electricity and Water Authority (Dewa).
- Apply for residence visas for dependents.
- Sponsoring domestic staff
- Telecommunication services (tv, landline and internet).
Also, your Ejari contract needs to be renewed, just like your tenancy contract. To learn more about the Ejari process, click here.
2. Dewa security deposit and activation charges
Cost:
Dh2,000 – Dh4,000 (depending on type of unit) – security deposit
Dh130 – activation fee
After registering your Ejari, you will be eligible to apply for a Dewa connection by providing your Ejari number. Besides paying for activation charges, you will also need to pay a security deposit, which is refundable, by applying for the Dewa ‘Move In’ service through their website and app.
Cost:
If you have a villa, the security deposit will cost you Dh4,000.
If you have an apartment, the security deposit will cost you Dh2,000.
You will have to pay the deposit and the activation fee of Dh130, after which you can expect the connection to be activated within 15 hours.
The process is a little different if you’re moving between homes within Dubai. You can automatically transfer your Dewa connection from your previous home to the new one through Dewa’s 'Move-to' service. While this service allows users to transfer the security deposit for the earlier property to the new one, you will still have to pay the activation fee.
3. Housing fee
Cost: 5 per cent of rent
The Dubai Housing fee is a charge you must pay when you own or rent a property in Dubai. You may not easily recognise this fee, but you can find it on your Dewa bill. Dubai Municipality imposes housing fees equivalent to five per cent of the rent, paid over 12 months.
This is how the formula for your monthly housing fee is calculated: Rent x 5 per cent ÷ 12 . To understand where you can find this fee, read our guide here.
4. Agent commission
Cost: As per the rental contract
Once you have found the perfect home, you must pay your real estate agent a commission. However, there is a lot of ambiguity on the exact percentage of the commission fee for agents in Dubai.
As reported by Gulf News in 2020, Ahmed Elnaggar, managing partner at Elnaggar and Partners clarified that there is no maximum or minimum commission stipulated in the law for brokerage fees, and that this is a subject that is to be regulated contractually.
Another crucial aspect you should remember when finding an apartment or villa is to deal with a real estate agency or brokerage registered with RERA. You can find the list of licenced real estate agents in Dubai through this link here: https://dubailand.gov.ae/en/eservices/licensed-real-estate-brokers/licensed-real-estate-brokers-list/#/
5. Cooling fees
Before setting your sights on a particular home, it is important to know the chiller service charges. Depending on your landlord or property developer, you will face two options: chiller-free or district cooling.
If you are looking for an apartment, you may come across a property listing advertising ‘chiller free’. This means the residential unit has a central air conditioning unit, and the property management company will cover the monthly costs. You will not pay for air conditioning when you get your monthly Dewa bill.
Another option is district cooling. District cooling also referred to as a chiller service, is typically used in high-rise buildings, where electricity is consumed. Regular water or seawater is cooled in a central plant and passed along underground pipelines around the district. You can only get district cooling in a select number of neighbourhoods in Dubai.
6. Paying for amenities
Depending on your contract, your rent might cover the use of facilities in the property, like the gym, swimming pool, health club or parking. On the other hand, you may also be charged additionally to use these amenities. It comes down to what is stated in your contract.
According Manali Sangoi, a legal associate at Hadef and Partners who spoke to Gulf News in 2023, Dubai’s rental regulations permit tenants and landlords to arrive at their own arrangement regarding the use of common building amenities and the tenancy contract can provide for a separate charge for using it.
“We have seen additional fees charged for amenities that are not provided exclusively to the building occupiers,” she said. This may include amenities like private health clubs or beach club memberships.
7. Security deposit
Cost: As per contract
When you are moving into a new villa or apartment in Dubai, the landlord is entitled to charge security deposit, which is refundable once you vacate the property.
The Dubai Rental Law does not state the amount or percentage of the rent that can be charged as a security deposit but according to real estate experts interviewed by Gulf News, the industry standard is five per cent of the annual rent for unfurnished units and 10 per cent for furnished apartments. The deposit covers the landlord if there are any damages.
8. Transferring internet, TV, and landline connection
When moving, first check which telecom provider serves your new area. If you are switching from e& to du, you will need to cancel your current account and set up a new one. If not, you can transfer your equipment (router, set-top box, cables) to the new location. Request the transfer a few days in advance, as it takes 12 to 24 hours for full activation. Transfer costs range from Dh100 to Dh150 for both du and e& customers. For a detailed guide, click here .
This article was originally published on July 26, 2022 and has been updated since.
