When looking for a property to rent, finding the best property that suits your needs is only half the battle. After selecting the property, the paperwork begins with discussions on the rent and other associated fees.
Here are some of the common costs you should be aware of before signing the tenant agreement.
- Agency commission
If you are renting a property in Dubai, you’ll probably consult top Dubai real estate agencies to get the best deal. However, you should expect to pay a commission of up to 5% of your first annual rent. Also, some landlords appoint agencies to manage their properties. So, even if you find the property by yourself or through a friend, you would also need to pay the agent’s fee. In some cases, you may interact directly with the landlord without involving any commission.
- Security deposit
Apart from the rent, you will need to pay a security deposit which is also 5% of the annual rent. According to Article 20 of Real Estate Legislation, the security deposit is intended to resolve unexpected issues like damage or breach of the lease agreement. The security deposit is refundable upon vacating the property. However, some landlords deduct a certain percentage of the deposit to cater for repainting and minor repairs.
- Ejari fees
In Dubai, it is mandatory to register tenancy contracts with the Real Estate Regulatory Authority (RERA) through the Ejari system. As a tenant, you will have to complete the registration formalities and pay related costs which are around AED 195. You will only need the original tenancy contract, a DEWA bill and copies of your passport and visa.
- DEWA connection
As a new tenant, you will need to set up a DEWA account for electricity and water supply. If it is your first time to rent in Dubai, the DEWA account will cost AED 100. There are also other additional costs such as administrative fee and refundable security deposit which is AED 4000 for villas and AED 2000 for apartments.
And lucky for you, due to the recent growth of the property market, there have been new off plan projects in Dubai that are expected to be completed soon.
- Etisalat/ Du
In order to get internet, TV and phone services, you will need to set up an Etisalat or Du account. The installation cost for Etisalat is AED 199 while Du is AED 200. However, the total cost will depend on the TV package, internet speed and type of router.
There are numerous villas for sale in Dubai offered at affordable prices. So if renting is not your cup of tea, you can also consider investing in the new affordable real estate projects in Dubai.
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