1. course of the rental process

a) House hunting

• Online platforms and real estate agents: Houses for rent in Dubai are mainly offered through platforms such as Property Finder, Bayut or through real estate agents. Estate agents are helpful when looking for houses in specific neighborhoods such as Arabian Ranches, Jumeirah, Al Barsha, The Springs or Palm Jumeirah.
• Viewings: Once a suitable house has been found, a viewing will be arranged. The condition of the property should be checked carefully, especially in the case of older houses.

b) Deposit and advance rental payment

• Deposit: For houses, the deposit is usually 5% of the annual rent (for unfurnished houses) and 10% for furnished houses. This deposit serves as security for the landlord and is refunded at the end of the tenancy, provided there is no damage to the house.
• Rent prepayment (checks): In Dubai, it is customary to pay rent in advance by post dated checks. Normally the rent is divided into 1 to 4 checks per year, but some landlords will accept monthly payments if negotiated.

c) Tenancy contract

• The rental agreement is concluded between the landlord and the tenant and specifies the rental period, payment terms, responsibilities and termination regulations.
• Ejari registration: All rental contracts must be registered with Ejari to make them official. Ejari registration is required to apply for electricity, water and gas connections.

d) Supply connections

• DEWA (Dubai Electricity and Water Authority): Tenants must register with DEWA for electricity and water. The deposit for houses is usually AED 4,000.
• Air conditioning (chiller): Some villas or neighborhoods have chiller charges for air conditioning. These vary greatly depending on the size and location of the house.
• Gas and Internet: These services must be registered separately with providers such as DU or Etisalat (for Internet) and various gas suppliers.

2. costs

a) Rental price

• The rental price for houses varies considerably depending on location, size and facilities. Popular residential areas such as Arabian Ranches, Palm Jumeirah or Jumeirah Golf Estates are more expensive than areas such as Mirdif or Al Warqaa. Single-family homes can cost between AED 100,000 and several hundred thousand per year, depending on size and location.

b) Deposit

• Unfurnished houses: 5 % of the annual rent.
• Furnished houses: 10 % of the annual rental price.

c) Brokerage fees

• The broker’s fee is usually 5% of the annual rent or at least half a month’s rent.

d) Ejari registration fees

• The registration of the rental contract with Ejari costs 220 AED and must be paid by the tenant.

e) DEWA deposit

• For houses, the deposit for electricity and water is around AED 4,000. This is refunded at the end of the tenancy, minus any outstanding bills.

f) Chiller fees (optional)

• In some houses, especially in villa complexes with central air conditioning, chiller charges may apply. These vary depending on consumption and the size of the house and can amount to between AED 1,000 and AED 3,000 per month.

g) Maintenance costs

• Many tenancy agreements stipulate that the landlord is responsible for major repairs, while the tenant is responsible for minor maintenance work. Some tenants sign maintenance contracts that can cost between AED 2,000 and AED 5,000 per year.

3. additional considerations

a) Responsibilities of the tenant

• Garden maintenance: In many villa neighborhoods, tenants are responsible for the maintenance of the garden. If desired, gardeners can be hired at an additional cost (usually AED 300-500 per month).
• Pool maintenance: If the rented house has a pool, tenants are usually responsible for its maintenance. A pool maintenance service can cost between AED 500 and AED 1,000 per month.

b) Rent increases

• Rent increases are subject to the guidelines of the Real Estate Regulatory Agency (RERA). Landlords are only allowed to increase the rent according to the rent index set by RERA. The amount of the rent increase depends on market conditions and there are clear rules that prevent landlords from raising the rent sharply without prior notice.

c) Termination of the rental agreement

• The tenant or landlord can terminate the rental contract with 90 days‘ notice before the contract expires. Early termination may result in penalties, which are normally specified in the contract.

Example calculation for renting a house

Suppose you rent a house in Arabian Ranches for AED 200,000 per year. The expected costs would be:

1. Deposit: 5% of AED 200,000 = AED 10,000
2. Brokerage fee: 5% of AED 200,000 = AED 10,000
3. Ejari fee: 220 AED
4. DEWA deposit: AED 4,000
5. Chiller fees (if applicable): approx. AED 2,000 per month = AED 24,000 per year
6. Maintenance contract (optional): approx. AED 3,000 per year
7. Garden maintenance and pool maintenance (optional): approx. 1,000-1,500 AED per month = 12,000-18,000 AED per year

Additional monthly costs include electricity, water and gas, which vary according to consumption and the size of the house.

Conclusion