What payments and registrations are required when leasing a property in Dubai?

When leasing a property in Dubai, tenants are required to make several payments and complete key registrations to legally formalize the tenancy agreement. Below is a breakdown of the typical process:

Payments Required:

1. Security Deposit:

   • Typically 5% of annual rent for unfurnished units

   • 10% for furnished units

   • Refundable at the end of the lease, subject to property condition

2. Agency Commission:

   • Usually 5% of the annual rent or a minimum of AED 5,000

   • Paid to the real estate brokerage firm

3. Rent Payment:

   • Rent is usually paid via post-dated cheques, commonly in 1 to 4 installments per year

   • Some landlords now accept bank transfers or direct debit options

Registrations Required:

1. Ejari Registration:

   • Mandatory registration of the tenancy contract through Ejari, the official rental registration system under the Dubai Land Department

   • Cost: AED 195 (approx.)

   • Required for legal protection and essential services (e.g., DEWA setup, visa renewal)

2. DEWA Activation (Utilities):

   • Deposit: AED 2,000 (apartment) / AED 4,000 (villa)

   • Activation Fee: AED 130–200

   • Payable online or at DEWA offices

3. Housing Fee (Municipality Tax):

   • Charged at 5% of the annual rent, paid in monthly installments via DEWA bills

Note:
Tenants should always ensure the lease agreement is signed, Ejari is registered, and all fees are paid to approved entities. Failure to register Ejari may result in legal issues or denial of basic services.