Renting a property in Dubai involves several financial commitments that tenants should be aware of before signing a lease. The process can be straightforward and hassle-free if you use the right agency, but understanding the various payments involved is crucial to avoid any surprises.
1. Security Deposit
The first payment required is typically a security deposit, which is usually 5% of the annual rent for unfurnished properties and 10% for furnished ones. This deposit is refundable at the end of the lease, provided the property is returned in good condition.
2. Rent Payments
In Dubai, rent is often paid upfront in one or more post-dated cheques. The number of cheques can vary depending on the landlord's preferences, with one, two, four, or even twelve cheques being possible. The more cheques offered, the more flexibility a tenant may have, but this could also increase the rental price.
3. Agency Fee
If you are renting through a real estate agency, an agency fee is typically required. This fee is usually 5% of the annual rent and is paid upon signing the tenancy agreement. The agency fee is non-refundable.
4. Ejari Registration Fee
Ejari is a mandatory system that registers tenancy contracts in Dubai. Tenants are responsible for registering their lease through Ejari, and the fee is approximately AED 220. This registration is essential for various utilities and legal purposes. The registration can be done on the Dubai Rest app or in a typing centre.
5. DEWA (Dubai Electricity and Water Authority) Deposit
To activate the utilities, tenants must pay a deposit to DEWA. For apartments, this deposit is usually AED 2,000 (plus VAT), while for villas, it is AED 4,000 (plus VAT). This deposit is refundable when the contract ends, and the account is closed.
6. Chiller Deposit (If Applicable)
In some communities, air conditioning (chiller) charges are separate from DEWA. Tenants may need to pay a chiller deposit, which can range from AED 1,000 to AED 2,000, depending on the property.
7. Moving-In Permit
Certain communities in Dubai require tenants to obtain a moving-in permit. The cost and process can vary, but it is an additional consideration for those moving into gated communities or specific developments.
Renting a property in Dubai involves multiple payments beyond just the rent itself. Tenants should carefully budget for the security deposit, agency fees, utility deposits, and other potential costs. Understanding these financial commitments upfront will help ensure a smooth and stress-free renting experience in Dubai’s dynamic real estate market.
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