An Ultimate Guide to Rent in Dubai – Costs Revealed for Both Tenants and Landlords

Dreaming of renting an apartment in Dubai? You’re at the right place! Dubai isn’t just a city—it’s an emotion. With its tax-free lifestyle, diverse properties, iconic skyscrapers, and secure environment, Dubai draws thousands of new residents every year.

People are exploring Dubai real estate for rent or investment purposes. Whether you are searching for a cozy studio or dreaming of a luxurious villa, Dubai has something for everyone. Rentals in Dubai are not only about monthly rental payments. There are certain costs associated with it, like service charges, maintenance charges, DLD fees, and more.

To effectively manage your budget and avoid any hidden costs, understanding the rent costs in Dubai is important.

What’s Included?

Well, what’s included or not included depends upon the owner of the property and the type of property.

• Basic Rent of the Property

It is the core amount that you need to pay to get hold of the property. Basic rent of the property represents the ticket and the right to live there.

Note* Utilities such as water and electricity are sometimes not included in this!

• Utilities

Certain communities in Dubai, or rental costs in Dubai, include basic utilities such as electricity and water in the basic rent. However, that’s not always true. Hence, confirming the same with your landlord is a better idea.

• Maintenance Charges

In general, the maintenance charges are covered by the landlord. Maintenance costs include those associated with the common areas of the building, such as the elevators, lobbies, or any place for recreational purposes. On the other hand, in-house maintenance costs, such as those associated with plumbing, electrical repairs, or any other, need to be confirmed by the landlord.

• Additional Costs

In addition to the above costs, it’s also important to take note of certain additional costs that you might need to pay if you are looking for apartments for rent in Dubai.

Below are some of the hidden costs that you are likely to pay before renting an apartment in Dubai.

1. Cost of Moving 

The cost of hiring movers and packers in Dubai depends on 3 factors:

• The size of your house
• The distance to your house
• What level of service do you require

For your understanding, here’s a rough estimate. Have a look!

• For a studio apartment – AED 1000 to AED 1500
• For a 1 or 2-BR apartment – AED 1500 to AED 2500

The above costs are mentioned to give you a rough idea. The actual cost of movers and packers depends on your specific requirements and the company you choose. Before choosing the best packer and mover, ask for quotes from various companies and then decide on the best one!

Note* Hiring the top movers and packers is always advisable if you don’t want to destroy your furniture or any other goods.

2. Ejari Registration 

Ejari Registration was introduced by RERA (Real Estate Regulatory Authority) for easy regulation of the Dubai rental market. It is an online registration system that protects the rights of both the tenants and the landlords, ensuring transparency at every step.

Now, you must be thinking about the fees and the documents required for Ejari registration. Well, have a look!

The Ejari registration fee is AED 206 plus VAT. And, in case of renewal, the fees is AED 120.

The required documents for Ejari registration are:

• Original Tenancy Contract (Signed by both parties)
• Emirates ID & passport, and visa copies of the tenant
• A valid copy of the landlord’s passport (self-attested)
• A valid copy of the title deed provided by the landlord.

Note* some of the tips for a smooth Ejari registration process are:

• The Ejari contract must be under the landlord’s name. If two people are sharing, then one lead person need for contract registration.
• If the landlord is unavailable for signing the documents, you need to provide high-quality scans of the required documents.
• Locate the DEWA premise number. You can find this number outside the front door of the apartment or next to the garage in the case of villas.

3. DEWA Deposit 

For taking advantage of electricity and water services, the DEWA deposit is important. Generally, the DEWA Deposit is a security deposit that a tenant needs to be deposited at the time of giving an apartment for rent. The main purpose of this deposit is to safeguard against any unpaid bills or outstanding charges.

This deposit depends on the rented property

• The deposit amount is AED 4,000 for villas
• The deposit amount is AED 2,000 for apartments

Note* The DEWA deposit is refundable when you move out of the property.

4. Security Deposit 

As a tenant, you need to pay 5% of the annual rent as a security deposit for the unfurnished properties and 10% for the furnished ones to the landlord.

You can get the refund for this deposit at the end of the tenancy contract. On the condition that there are no damages to the property except normal wear and tear.

5. Agency Fees 

In Dubai, rents rise faster than salaries! Hiring a real estate agent to find a rental property in Dubai will require an agency fee, typically around 5% of the annual rent.

Note* Always get in touch with the reputable real estate agents in Dubai

6. Housing Fees 

It refers to the fees that both the landlord and the property owner need to pay. This fee is collected monthly by the DEWA for the services provided by the Dubai Municipality, which include Public parks and amenities, Food and security, cleanliness, and waste management.

The owner of the property needs to pay 0.5 of his total property value, whereas the tenant needs to pay 5% of the annual rent. The DEWA deposit is required to access electricity and water services. It is a security deposit paid by tenants when renting an apartment. Its main purpose is to cover any unpaid bills or outstanding charges.

This deposit depends on the rented property

• The deposit amount is AED 4,000 for villas
• The deposit amount is AED 2,000 for apartments

Note* The DEWA deposit is refundable when you move out of the property.

Now comes the point;

When, Where, and What to Rent in Dubai

It’s always recommended to commence your search for property two months prior to moving into your dream home.

Are you already stuck in the given timeframe of 2 months? Then, it’s time to think about the type of property and its location. You can find numerous communities. You can look at our area guides and get a better understanding about each community.

Once you select the community, you need to finalize the type of property. If you are a newbie, you can get in touch with the best real estate companies or agents in the particular community.

The real estate agents in Dubai can help you navigate the entire market with great ease. You can choose between apartments, villas, townhouses, and penthouses; each equipped with different yet modern amenities.

If you are an individual looking for apartments for rent, consider a studio or 1-BH apartment. On the other hand, if you want to live with your kids and family, you can consider 2-BR, 3-BR apartments, or even villas or penthouses.

Once you find a perfect home, you can make an offer to the landlord of that particular property.

Tips for the Tenants

Before renting an apartment or villa in Dubai, here are some tips you need to follow if you are a tenant. Have a look!

• Before making an offer and signing the rental agreement, clear your confusion with the landlord regarding the rental costs in Dubai to avoid any hassle.
• Review the tenancy contract more than two times to avoid any further misunderstandings.
• Be prepared for the costs to avoid any confusion.
• Agency fees and other costs are negotiable. It’s always better to clear any misunderstanding with the landlord.

This blog will help you easily understand the rental costs in Dubai and then make the decisions accordingly.