Last reviewed 24 October 2026. Checked against Dubai's real estate brokerage by-law, the Dubai Land Department's broker rules and the UAE VAT law. Sources are listed at the end.
Key Takeaways
- The agency fee for renting in Dubai is usually 5 percent of the first year's rent, plus 5 percent VAT on the fee. That is market practice, not a rate set by law.
- No regulation fixes the commission. Dubai's brokerage by-law says a broker's fee is set by agreement, and by prevailing practice only where nothing was agreed.
- Some agencies apply a minimum fee, commonly AED 5,000. That is the agency's own policy, not a rule.
- The tenant usually pays. Who pays, how much, and when must be in a written brokerage agreement signed with a licensed broker.
- Only a broker registered with the Dubai Land Department can charge commission. Check the broker's registration number on the Dubai REST app before you pay.
- The fee is negotiable, is not refundable once the contract is signed, and is normally not charged again when you renew directly with the landlord.
What Is the Agency Fee?
In Dubai, the agency fee is the commission paid to the real estate agent who finds and secures a rental property for you. It covers sourcing suitable properties, arranging viewings, negotiating with the landlord and handling the paperwork for the tenancy contract and its Ejari registration.
The figure almost every agency quotes is 5 percent of the first year's annual rent, plus 5 percent VAT on the commission itself. For a property at AED 100,000 a year, that is AED 5,000 plus AED 250 VAT, AED 5,250, paid when you sign.
Some agencies apply a minimum fee, most often AED 5,000, so that whichever is higher applies. On studios and lower rents the minimum is what you pay. On most standard apartments the 5 percent calculation already meets it. The minimum is an agency policy and can be negotiated like the rate itself.
The fee lands at the same moment as the deposit and the first rent cheque, which is why move-in costs in Dubai are so front-loaded. If that lump sum is the problem, Keyper's Rent Now, Pay Monthly spreads the year's rent into twelve monthly card payments, which leaves the agency fee as the only large upfront cost.
Is the Agency Fee Regulated?
No. This is the most common misunderstanding about renting in Dubai. The rule that governs brokers is By-Law No. 85 of 2006, which regulates real estate brokers in the emirate. It does not set a percentage. It says a broker's fee is determined by agreement between the parties, and only where there is no agreement is it determined by prevailing practice. It also requires the brokerage contract to be in writing, naming the parties, the property and the brokerage terms, and it bars anyone who is not licensed and registered from acting as a broker.
So 5 percent is the prevailing practice, and it is the figure a court would fall back on if nothing was agreed. It is not a ceiling and it is not a floor. An agent who quotes 10 percent is not breaking a rule, but you do not have to accept it, and a written agreement at a lower figure is binding on both sides.
What is regulated is who may charge. Only a broker holding a Dubai Land Department broker registration number may take commission, and the brokerage agreement is meant to be registered. You can check any agent's registration in the Dubai REST app. If an unregistered person asks for a fee, or a registered broker refuses to put the fee in writing, you can complain to the Real Estate Regulatory Agency through the same app.
Who Pays the Agency Fee?
In Dubai the tenant usually pays. The landlord appoints the agent to market the property, but the commission for a rental is charged to the tenant who takes it. This differs from many other markets, and it is practice rather than law: the by-law leaves who pays to the agreement, so a landlord can and sometimes does cover it.
When the Tenant Does Not Pay
- Renting directly from the owner. Listing portals let you filter for properties marketed by the landlord, where there is no agent and no commission.
- Renting from a developer or property management company that leases its own units without an external agent. Many of the companies in the Dubai Land Department's FlexiRent scheme lease directly, so ask whether a commission applies before you view.
- A landlord in a hurry. On a unit that has been available for a while, or where the owner wants it let quickly, the landlord may agree to pay the agent's fee to secure a tenant.
How to Calculate Your Fee
The arithmetic is simple: 5 percent of the annual rent, then 5 percent VAT on that amount.
| Annual rent | Commission at 5% | VAT at 5% on the commission | Total to the agent |
|---|---|---|---|
| AED 60,000 | AED 3,000, or AED 5,000 if the agency applies a minimum | AED 150, or AED 250 | AED 3,150, or AED 5,250 |
| AED 100,000 | AED 5,000 | AED 250 | AED 5,250 |
| AED 150,000 | AED 7,500 | AED 375 | AED 7,875 |
| AED 250,000 | AED 12,500 | AED 625 | AED 13,125 |
Commission at the prevailing 5 percent rate; VAT at the UAE standard rate of 5 percent under Federal Decree-Law No. 8 of 2017. The agent must issue a tax invoice showing the VAT separately.
The agency fee, the deposit and the first cheque all land in the same week
Keyper pays your landlord the year's rent upfront and you pay Keyper in 12 monthly card payments, with the security deposit split across the first three. The agency fee becomes your only big day-one cost.
See how Rent Now, Pay Monthly worksCan You Negotiate the Fee?
Yes. Because the fee is set by agreement, it is open to negotiation, and your leverage depends on the market, the agent's motivation and the value of the property. In slower periods and on high-value rentals, agents do agree to 3 or 4 percent. On studios and low rents, where a minimum fee applies, there is less room.
Talk to More Than One Agent
Get quotes from several registered agencies for the same kind of property. Check each agent's registration number on Dubai REST while you are at it. An unregistered agent cannot legally charge you at all.
Use Competing Offers
Telling an agent that another has offered a lower rate is real leverage. Most agents would rather close the deal than lose the client over a point of commission.
Put the Figure in Writing Before You View
The by-law requires a written brokerage agreement. Ask for it early, with the percentage, the VAT and the payment date stated. An agent who will not put the fee in writing is telling you something.
Ask Who Pays
If the landlord is motivated, ask the agent to put the commission to the landlord. It costs nothing to ask and it works more often on units that have been empty for a while.
FAQs
How much is the agency fee in Dubai?
Usually 5 percent of the first year's rent plus 5 percent VAT on the fee, so AED 5,250 on a rent of AED 100,000. Some agencies apply a minimum of around AED 5,000. The rate is market practice and is negotiable.
How much commission do rental agents take?
The prevailing rate is 5 percent of annual rent. Dubai's brokerage by-law does not fix a percentage. It leaves the fee to agreement between the parties, so lower rates are legitimate when agreed in writing.
What fees should tenants expect when renting in Dubai?
The agency fee, the security deposit, the Ejari registration fee, the DEWA connection deposit and the 5 percent municipality housing fee that arrives on the DEWA bill. The fee lands in the same week as the deposit, Ejari and DEWA.
Is the agency fee in Dubai refundable?
No. Once the tenancy contract is signed the agent has earned the commission, and it is not returned if you leave early or do not renew. Under the by-law a broker is only entitled to a fee once the brokerage results in a signed contract, so nothing is due if the deal falls through before signing.
Do I pay the agency fee again when I renew?
Not usually. The fee applies when a new contract is secured through an agent. If you renew directly with the landlord, no commission is due. If an agent handles the renewal, check the brokerage agreement, because some charge a smaller renewal fee.
Can I negotiate the agency fee?
Yes. Compare agents, mention competing quotes, and ask for the agreed figure in the written brokerage agreement before viewings. Negotiating to 3 or 4 percent is realistic on higher rents and in quieter months.
Before You Sign
The agency fee is a predictable cost of renting in Dubai: 5 percent plus VAT by convention, set by agreement by law, charged only by registered brokers, and open to negotiation. Get it in writing, check the broker's registration, and budget for it alongside the deposit and the first cheque. Our move-in checklist covers the rest of the paperwork.
Pay the year's rent in 12 monthly card payments
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Apply to pay rent monthlySources
- Al Tamimi: Brokers 101, on By-Law No. 85 of 2006 (fees by agreement, written and registered brokerage contracts, licensing)
- Dubai Land Department: real estate legislation
- Dubai Land Department: Dubai REST app (broker registration check)
- Dubai Land Department: FlexiRent initiative (property management companies leasing directly)
- UAE Federal Tax Authority: VAT at the standard rate of 5 percent
