When renting a home in Dubai, the annual rent is only part of the expense. Security deposits, agency commission, utility connections and moving fees can significantly increase your initial costs.
Before signing a tenancy contract, here are the main Dubai rental costs you should include in your budget.
1. Upfront Rental Costs
Before moving in, tenants typically pay several fees:
- Ejari registration: Around AED 177.75 to AED 220, depending on the registration method and service charges.
- Security deposit: Usually 5% of annual rent for unfurnished homes and 10% for furnished properties.
- DEWA deposit: AED 2,000 for apartments or AED 4,000 for villas, plus activation charges.
2. Agency Commission and Monthly Fees
Other expenses include:
- Agency commission: Typically 5% of annual rent, depending on the agreed terms.
- Dubai Municipality housing fee: Generally 5% of annual rent, collected monthly through DEWA bills.
- Chiller charges: Separate cooling deposits, registration fees or monthly bills may apply, depending on the building.
Check with your agent whether cooling is included in the rent.
3. Utilities and Moving Expenses
You may also need to budget for:
- Internet and TV: Installation and activation charges depend on the provider and package.
- Gas connection: Approximately AED 600 to AED 800, depending on the supplier and setup.
- Professional movers: Around AED 1,000 to AED 1,500 for a one-bedroom home and AED 2,000 to AED 3,000 or more for larger homes.
- Cleaning and painting: Deep cleaning for a one-bedroom apartment may cost AED 200 to AED 600. Repairs and painting cost extra.
- Building permits: Some buildings charge fees for move-in permits or lift bookings.
4. Which Costs Can You Get Back?
Rental and utility security deposits are generally refundable, subject to the applicable terms, outstanding bills and property condition.
However, agency commissions, registration fees, moving costs and most activation charges are usually non-refundable.
Therefore, keep your receipts and check the refund conditions before paying any deposit.
How Much Extra Should You Budget?
As a general planning guide, consider setting aside an additional 15% to 20% of your annual rent for moving and setup costs. This is an estimate, not a fixed requirement.
For example, if your annual rent is AED 80,000, an extra AED 12,000 to AED 16,000 could provide a useful starting budget.
Ultimately, ask your agent for a complete breakdown of upfront payments before signing. Knowing the total cost will help you choose a home that fits your budget without unexpected expenses.
