Renting an apartment in Dubai? Be Mindful Of These Costs

When you move to Dubai for work, one of the main thing you will consider is the accommodation. Few companies in Dubai offer accommodation besides their salary, but some come inclusive of the salary package and then it is your task to find an apartment for rent in Dubai.

As experts say and a general suggestion is to spend around 30% of your net month income on house rent. Regardless, before finalizing your tenancy contract, you should make sure if there are any additional rental expenses before you end up paying more unknowingly.

To help limit this unanticipated situation, I will help you foresee a portion of the hidden costs you may experience when finding apartment for rent in Dubai:

Maintenance Fee

Maintenance charges are levied by developers. For example, Emaar, Nakheel, and Dubai Properties charge on a yearly basis. You should be aware that landlords should bare these charges. Nevertheless, at times it is passed on to the tenants in hidden rental clauses in the first term of the contract. Maintenance charges are utilized generally for major and minor repairs to regular with the rented properties.

Service/Utility Fee

House owners in Dubai have all the privilege to increase the service charges on the house you’re renting. In any case, if you feel that your house owner is increasing your service or utility charges very high, at that point it is an ideal opportunity to have legal assistance ready to help you prepared for any disputes on your home’s service charges. Rental services are inclusive of parking space and utilities.

Municipality Tax or Housing Fee

Dubai Municipality charge 5% of the yearly rent. It is paid in 12 parts with each rental installment and added to your Dubai Electricity and Water Authority (DEWA) bills.

Agency Fee

Agency fee make you 2 to 5% of the first yearly rent. This will happen in case you’re renting a property by means of real estate or a brokerage firm. This is a standard. In any case, expenses might be subjective to change according to agent’s decision. And in any case of tenancy contract, the agent has no right to claim extra charge as this method don’t require the role of an agent.

Ejari Fees

Ejari is an online enlistment framework by Dubai Land Department. It is utilized to legally validate rental contracts and agreements between tenants and landlords. The enlistment is under the duty of the landlord, yet the tenant would now be able to likewise enlist the contract themselves.

Tenancy contract if not enrolled on Ejari is invalid, the tenant can’t use the document if in case they report for any rent related misuse.

DEWA deposit

The Dubai Electricity and Water Authority need a refundable deposit when renting a property. Make sure that you check if the unit is enlisted in the present landowner’s name before getting the utilities associated.

Property Deposit

Usually, the deposited amount is 5% of the annual rent for unfurnished properties and 10% for furnished ones, which will be issued in a post-dated cheque. At times, land owners may demand a deposit proportional to one month’s rent. Ensure that your tenancy contract incorporates the clause, stating the return date of deposit amount after leaving the rented property.

Also, land owners may deduct a specific amount from the deposit in case of any repairs. Tenants must ensure that the property is in good condition while returning to land owner so that you get your full deposit money.

Ensure to see each segment of tenancy contract before you sign. Before signing to the tenancy arrangement, confirm that you know about these charges.