If you are a foreigner that has been living in Dubai, then you probably already know a few things about renting an apartment there. You probably already know about the standard rental fees, and that you do not just sign a contract without reading through to spot the extra charges, as some of them are usually stipulated in the contract. These costs could ruin your day if you are a first timer in Dubai. They include;
- Agency fees; Agency commissions are usually 2 to 5% of the first annual rent since you have to pay one year upfront in Dubai.
- Property deposit; It is standard in Dubai to deposit an amount of money for renting a property. For furnished apartments, you deposit 5%, and 10% for unfurnished ones. They are refundable upon vacating the apartment.
- DEWA deposit; You normally have to pay for utilities monthly, but you also have to pay DEWA (Dubai Electricity and Water Authority) deposits for renting a property.
- Ejari fees; This is a system that authenticates the rental contract between tenants and landlords. It is a very important registration as rental contracts will remain void if it is not signed. Tenants will not be liable to report any rent abuse or even make any claims. The Ejari fee costs 195 AED for all types of properties.
- Security deposit; This is a refundable deposit you make before you move in, and it is usually equivalent to one month’s rent. Some landlords may also deduct a certain amount from the deposit for repainting and minor repairs.
- Buying an apartment can always be an option if you are not intrested in renting. But you should in that case first do your homework about the real cost of buying. Use a Dubai mortgage calculator that includes all fees and charges before taking the big step to becoming a home owner.
Other extra payments that you could possibly make include the sponsoring a housemaid, and this can cost some good amount. Dubai Land Department has set out rules to protect and regulate the relationships and agreements between landlords and tenants in different cases.