The Costs of Renting in Dubai. Tenant’s Checklist

The expenses you should know about before and after moving into a new home

Gareth Davies, of Keller Williams Real Estate says: -

Before viewing properties, make a list of what you are looking for and split the list between “Wants” and “Needs”. For example, if you have children, you may want a sea view, but you need an extra bedroom.

The most important “need” is to get as many of your requirements within your budget. That budget should include rent and the other costs associated with moving home. Also, most costs are now subject to 5 per cent VAT (value added tax).

Here are some of the costs to consider before and after moving into a rental apartment or villa.

Before Moving-in

During the viewing, check the condition of the property and it there are any repairs needed. Make a note of the facilities in the tower / community.

The Rent

The rent is paid as post-dated cheques. The number of cheques is becoming more flexible as landlords are becoming more competitive. It is important to note that UAE cheques cannot be cancelled, and dishonoured cheques can cause a landlord to raise a legal action.

Security Deposit

To secure a property and take it off the market, a non-refundable deposit of 5 per cent of the rent agreed is collected by the Landlord’s broker.  

On signing the Tenancy Agreement, this same payment becomes a refundable Security Deposit. The deposit, paid in one cheque, amounts to 5 per cent of the annual rent for an unfurnished property or 10 per cent for furnished property.

This cheque is cashed and will be returned on vacating the property, once all utility bills have been settled by the outgoing tenant. Also, the condition of the property should be left in acceptable condition. The changes you made to the property with the approval of the landlord should also be put right before leaving. This includes painting the property if this is a term of the tenancy.

Ask the Landlord’s broker to put in the agreement the details of the security deposit and get a receipt upon payment. Specify that it shall be refunded to the tenant within 14 days after the all of these have been done: - the end of tenancy, moving out, settlement of bills, delivery of the property to the landlord, and cancellation of Ejari.

Move-in Permit

A move-in permit may be required by a property manager or owners’ association. To apply for a move-in permit, the tenant will need the tenancy and Ejari documents. After that, the owners’ association / community management may require confirmation from the landlord via email.

The permit helps to ensure minimal disruptions to other tenants and a smooth relocation. It will include access to the service lifts in the towers and parking closer to the lifts / building. With gated communities, confirm if a move-in permit is required to allow removal trucks in. Your leasing agent should be able to guide you and co-ordinate with the landlord/building manager. A move-out permit is also required at the end of your tenancy to vacate the property/building.

Utility Deposits

There are refundable security deposits to utility providers and for ongoing consumption charges. The Dubai Electricity and Water Authority (DEWA) will charge a one-time amount of approximately 2,000 AED for an apartment and approximately 4,000 AED for a villa. This will be refunded when you move out, but you will need to present an original deposit receipt. You also need to pay for telecommunication/internet connection and personal relocation costs.

After Moving-in

You will also need to budget for the ongoing costs after you move into your new home.

Home Furniture and Decorations

A new home also needs several essential items, including furniture and perhaps some redecoration. These costs vary widely based on individual requirements and preferences.

Maintenance

These costs should be clearly mentioned in the Tenancy Agreement (Contract).

Major maintenance and service charges and community fees are usually paid by the Landlord.

Minor maintenance (usually below 500 AED) is payable by the tenant. Damage due to misuse of the property is also payable by the tenant.

Housing Fees

The tenant also needs to pay a Dubai Municipality fee, which is 5 per cent of the yearly rent. It is included in the DEWA bill and divided into 12 monthly instalments.

Community Fees / Rules

Each community has its own rules and regulations regarding amenities, timings, parking spaces and pets. Also, ask if the property uses central or ducted or split AC, and if any deposits are payable for cooling services. Make sure outstanding bills and previous Ejari have been cancelled.