Think Twice Before Renting in Dubai!

Apartment Renting in Dubai: Hidden Costs Few Consider

Dubai's dynamic real estate market continuously attracts those relocating to the UAE's most populous city for work, quality of life, or investment. Modern residential areas, stunning skyscrapers, and beachfront residences offer abundant choices, yet many new tenants only realize later on the additional expenses that significantly increase monthly outgoings beyond advertised rental prices. These hidden costs are not necessarily listed in the rental contract header, but they are an unavoidable part of being a tenant in Dubai.

1. Deposit: More than Just One Month's Rent

Although most ads feature a one-month deposit, in many cases it can stretch to two months, especially for furnished apartments or properties in premium locations. Additionally, landlords often only return the amount months after moving out, frequently deducting amounts under various pretexts such as cleaning, maintenance, or minor damages.

2. Broker Fee: The Agent Always Takes a Cut

Most Dubai apartment rentals go through real estate agents who typically charge 5% of the rent as a brokerage fee. This amount is payable upon signing and is non-refundable. For instance, if someone signs an annual lease for a 100,000 dirham apartment, the agent's fee alone is 5,000 dirhams, posing a substantial one-time expense.

3. DEWA and Cooling: It's Not Just About Electricity

When opening a DEWA (Dubai Electricity and Water Authority) account, a deposit fee ranging from 1,000 to 2,000 dirhams based on apartment size must be paid. Many buildings also charge separately for district cooling, which is contracted through a separate provider, such as Empower or Emicool. This may incur a separate monthly fee, which for a larger apartment can range from 500–1,000 dirhams monthly.

4. Maintenance Fees: What Doesn't Break Still Needs Maintenance

While many new build apartments include maintenance in the common charges, more landlords are shifting smaller repairs onto tenants. This means if the air conditioning breaks, a tap leaks, or lighting fails, tenants often bear the repair costs. It's advisable to sign a maintenance agreement with a provider, which ranges annually between 500–1,000 dirhams and covers some basic repairs.

5. Community Fees and Services

Many modern apartment complexes and residences offer not only housing but also pools, gyms, saunas, and common lounges. Community fees are often charged for their upkeep and added to rent. Although the owner pays the annual service charge, there are communities where this is partly or fully transferred to the tenant.

6. Home Insurance: Often Expected, Sometimes Compulsory

Most landlords expect tenants to take out home insurance covering damages caused by the tenant. This annual cost typically ranges from 300–500 dirhams. While not a huge amount, it's an extra that many do not plan on in advance.

7. Parking: Not Always Included Automatically

While many buildings provide at least one parking space, more and more residences in Dubai have no designated spaces for a second vehicle or guest cars. If no parking comes with the apartment, renting a space separately can cost between 300–800 dirhams monthly, depending on location.

8. Furnishing Fees and Moving Costs

Though many apartments are rented furnished, usually at a higher rate with depreciation figured into the price, if one prefers using their own furniture, moving costs, and obtaining new furnishings present significant additional expenses.

9. Ejari Registration: Mandatory Administrative Cost

Every rental agreement in Dubai must be registered in the Ejari system, the official record of the rental relationship. The fee is 220 dirhams and is generally charged to the tenant. Ejari is necessary for things like visa renewal, family residence permits, or other official processes.

10. Living Costs in the Area

Not directly tied to renting, but often overlooked are the living costs of the chosen neighborhood. In centrally located, elite residential areas, not only is the apartment more expensive, but daily shopping, dining, and service costs can also be much higher, indirectly raising the overall cost of renting.

Summary

While renting in Dubai may initially seem straightforward, many tenants only realize months later how much more housing costs due to hidden fees than initially thought from the advertisement. Forethought, detailed contract reading, and proper research are essential to ensuring that a new life in Dubai doesn’t turn into an unpleasant surprise. Behind the seemingly low rental price, numerous extra items often lurk, which should be factored into the budget from the outset. If planning for the long term, considering these can save money and stress later.

(Source: This post was created based on readers' shared experiences and stories.)