Whether you are planning to temporarily or permanently live in Dubai, it would be for your best interest to know exactly first how expensive is the cost of living in Dubai, especially the housing aspect. Dubai has a very high standard of living. As a matter of fact, many foreigners have been interested to relocate in the city because of the great opportunity to be living well, but that is also the reason why everything in Dubai is expensive.
Here are some of the costs you have to weigh when you plan to rent a property in Dubai;
Before moving in
Before you look for a property in City walk apartments or ask for advice from Dubai real estate agencies, you should first consider all the costs you have to pay before moving to a new property. This is the perfect time to ascertain the condition of your amenities, assets, and financial capacities in paying for your rental costs.
- Rent Expenses
Usually in Dubai, paying for your rent is through issuing post-dated cheques. Therefore, it is a must to have a good checking account before you plan to rent a property in Dubai. In addition, landlords are becoming more flexible with a number of cheques due to the tight competition in the market. However, you should bear in mind that UAE cheques can’t be cancelled, and bounced or dishonoured cheques could also put you in jail.
- Security Deposit:
To take the property off the market a security deposit, 5% of the annual rent for unfurnished property and 10 % of the annual rent for the fully-furnished property, should be paid to the landlord through post-dated cheques. This shall be refunded back to you, days after you vacate the place, given that you have settled all your pending bills, cancelled the Ejari, and left the property in a liveable condition. All these should be put into writing through a contract, and remember to ask for a receipt upon payment.
- Utility Deposit
These are security deposits for utility providers for water, electricity, and internet connection. This will be given back to you once you move out, provided that you have presented the original receipt of the deposit.
All rental contracts in Dubai are registered via the Ejari system by paying Dh 220; supposedly, it’s the landlord’s responsibility to pay for it but in general, the tenants are the ones who shoulder it.
- Move-in permit: Before you move to your new place, you have to secure first a move-in permit. The permit facilitates a smooth transfer of the tenant to the new location. Should you choose to leave the property, a move-out permit is also required.
- Broker’s fee:
If you have used a real estate broker in securing the property, then 5% of the annual rent is to be paid to the agency as a real estate brokerage fee.
After moving in
If you think you have finished with all the expenses after moving in, then you are wrong. There are still minor expenses you have to shoulder out. These are:
- Housing Fees
After moving in, the leaseholder has to pay 5% of the annual rent as a Municipality fee. It is incorporated in your water and electricity bill as a monthly instalment.
- Community Fees
The community has regulations with regard to parking spaces, amenities, etc. Ask with them regarding dues and other deposits that are payable. You also have to make sure your previous Ejari and outstanding balance have been cancelled.
Service charges, maintenance fees, and community fees are covered by the property owner. Minor maintenance, including damage expenses because of property misuse should be paid by the leaseholder.
Once you have settled, you would prefer your new home to have a more comfortable feel to it. Now, it is up to you how you would wish to decorate your home given that it doesn’t break your agreement with your landlord.
These are all the expenses you have to juggle with should you decide to rent a property in Dubai. If you think you have all the means, then don’t hesitate to talk with top real estate brokers in Dubai to ask for advice regarding properties that are perfect for your needs.