The Additional Costs of Renting in Dubai

TL;DR — Key Takeaways

• Additional costs add 15–25% on top of base rent at move-in
• Security deposit is 5% (unfurnished) or 10% (furnished) of the annual rent
• Agency commission is typically 5% of the annual rent
• Ejari registration costs AED 220 to AED 550 and is legally required
• DEWA deposit is AED 2,000 (apartments) or AED 4,000 (villas)
• A 5% Dubai Municipality housing fee is billed monthly through DEWA
• Utilities, cooling, and internet add AED 900–2,000+ per month on top

Upfront Costs When Moving In

These are the costs you pay before or at the time of signing your tenancy contract. Most are one-time expenses, though some are refundable at the end of your lease.

Security Deposit

Your landlord will require a refundable security deposit up front. The standard rate is 5% of the annual rent for unfurnished properties and 10% for furnished ones. If the annual rent is AED 100,000, that means AED 5,000 or AED 10,000 as security. However, it is refundable, subject to the condition of the property and damage deduction.

A signed rental handover checklist with photos is one of the most effective ways to protect your deposit when it comes time to leave.

Moreover, with Rent Now, Pay Monthly services, you can split the security deposit in three equal instalments. Subject to terms and eligibility.

Agency Commission (Broker Fee)

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If you found your property through a real estate agent, you will pay a commission — typically 5% of the annual rent, with a minimum of AED 5,000. This is paid by the tenant and is non-refundable. It is one of the most commonly overlooked costs by first-time renters, so factor it into your budget from day one.

For a full explanation of how this works, the agency fee guide for renting in Dubai covers everything in detail.

Ejari Registration

Ejari is the mandatory registration of your tenancy contract with the Dubai Land Department (DLD). Without Ejari, your contract has no legal standing, and you cannot activate DEWA, apply for residence visas linked to your address, or file a complaint at the Rental Disputes Centre.

How Much Does Ejari Cost?

• Online (via Dubai REST App): AED 177
• Through a trustee centre: AED 220 to AED 330

Registration is a one-time cost per contract. At renewal, it is registered again. If you skip this step, the risks are significant.

DEWA Deposit

To activate utility services through the Dubai Electricity and Water Authority (DEWA), you must pay a refundable security deposit:

• Apartments: AED 2,000
• Villas: AED 4,000

There is also a small connection or activation fee of around AED 155 to AED 330 when you register for DEWA.

District Cooling (Chiller) Deposit

Many buildings in Dubai use district cooling systems, provided by companies like Empower or Tabreed rather than standard DEWA-connected AC. If your building is not "chiller-free," you will need to pay a separate cooling deposit, usually between AED 1,000 and AED 4,000, depending on the provider and unit size.

Always confirm whether a property is chiller-free before signing. "Chiller-free" means cooling is bundled into your DEWA bill, which is far simpler and often cheaper to manage.

Quick Example: Total Upfront Cost on AED 100,000 Annual Rent

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Ongoing Monthly Costs

Once you have moved in, the additional expenses continue. These are recurring costs on top of your rent.

Dubai Municipality Housing Fee

This is one of the less visible costs for new tenants. The housing fee is 5% of your annual rent, billed monthly through your DEWA statement. On an AED 100,000 annual rent, that works out to roughly AED 417 per month. It is not optional and applies to all residential units in Dubai.

Utilities: DEWA and District Cooling

Electricity and water through DEWA can cost between AED 600 and AED 1,500 per month for an average apartment, with summer months running significantly higher due to AC usage. If your building uses district cooling, those bills can add substantially more, particularly if there is a fixed monthly capacity charge regardless of consumption.

Before signing, ask specifically: who pays the chiller bill, and is there a minimum monthly charge?

Internet and Telecom

A standard broadband connection through Etisalat or du runs AED 300–450 per month, depending on the plan and speed. TV packages and bundled services can push this higher.

Maintenance

Who pays for the maintenance when renting in Dubai? Major structural repairs are the landlord's responsibility, whereas minor maintenance, like light replacements, small fixtures and basic AC servicing, falls to the tenant. 

Your contract should specify the split clearly. If it does not, get it in writing before you sign.

Other Costs to Keep in Mind

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Furniture (for Unfurnished Properties)

If you are renting unfurnished, factor in the one-time cost of furnishing your home. This varies enormously depending on your standards and how much you bring from elsewhere, but it is a real and significant expense that many first-time Dubai renters underestimate. Comparing furnished and unfurnished rentals is worth it before you decide which route to take.

Renewal Fees

Renewing a tenancy contract does not always come with a government-mandated fee beyond Ejari re-registration, but some property managers or agents charge an administrative renewal fee of AED 500–1,500. This is not legally required. Negotiate it or push back if it appears without a clear justification.

Early Termination Penalties

If you need to exit your lease before it ends, your contract may include a penalty of one to two months' rent. Review the early termination conditions in your tenancy contract before signing, so you are not caught off guard.

FAQs

1. What is the total cost of renting in Dubai beyond the base rent?

When you account for upfront costs, security deposit, agency fee, Ejari registration, DEWA deposit, and chiller deposit, you pay an additional AED 12,000–20,000 on an AED 100,000 annual rent contract. 

Ongoing monthly costs, including the housing fee, utilities and internet, can add another AED 1,200–2,500 per month, depending on your usage and property type.

2. Is the security deposit refundable when renting in Dubai?

Yes, the security deposit is refundable at the end of your tenancy as per the Dubai rental law, provided the property is returned in good condition. Deductions can be made for damages beyond normal wear and tear or unpaid bills. 

Using a proper handover checklist and documenting the unit at move-in and move-out significantly reduces the risk of rental disputes.

3. What is the Dubai Municipality housing fee, and who pays it?

The Dubai Municipality housing fee is a 5% levy on your annual rent, charged to the tenant and billed monthly through DEWA. It is a mandatory government charge and applies to all residential tenants across the emirate. On an AED 80,000 annual rent, it works out to approximately AED 333 per month.

Budgeting accurately for a Dubai rental means looking beyond the headline figure. The true cost of moving in is closer to 20% above your annual rent in the first year, and ongoing monthly charges add meaningfully to your monthly payments. 

Going in with clear numbers, a reviewed contract, and an understanding of what is negotiable puts you in a much stronger position. 

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