Dubai Rental Upfront Costs: Deposit, Agency Fee, VAT and Move-In Budget

Agency fees are usually 5% of annual rent, plus VAT on the fee

For planning, the usual agency fee is 5% of the annual rent, plus 5% VAT on that fee. The security deposit is typically 5% of annual rent for an unfurnished home or 10% for a furnished home. These are market conventions, not a fixed tariff: confirm the actual amounts, any minimum agency charge and the deposit refund terms in writing.

On AED 100,000 annual rent, the agency fee at 5% is AED 5,000. VAT at 5% of that fee is AED 250, making AED 5,250 payable to the agency. The usual landlord deposit is AED 5,000 unfurnished or AED 10,000 furnished. Do not add 5% VAT to the whole annual rent using this calculation; the VAT here is on the brokerage service.

Separate registration and any quoted administration costs

Ask who registers Ejari, through which channel and what is included in the quote. DLD’s published online/Dubai REST registration total is AED 177.75 at the source-check date. A trustee or agent-assisted route can have different charges. Request an itemised invoice instead of assuming an unspecified “contract fee” is the official registration cost.

Budget for DEWA, internet and building access

DEWA lists a refundable deposit of AED 2,000 for a residential flat or AED 4,000 for a villa, plus activation charges; its consumer FAQ lists AED 155 for standard activation. Confirm the final account quote. For applicable tenancies, Ejari triggers DEWA account instructions; ask about the alternative process where a free-zone tenancy is exempt from Ejari.

Check e& or du installation, router and contract charges for the address. Ask management whether a moving permit, lift booking, contractor paperwork or refundable moving deposit is required. Record the applicant, payee, due date and receipt for each item.

Ask which cooling account and cards need separate payment

Find out whether Empower, Emicool or another provider serves the building and whether you must open an individual account. Confirm deposits, connection, capacity and consumption charges. Ask what “chiller free” includes. Check the number of keys, access cards and parking tags supplied and the charge for any additional item; do not assume they are all extra.

A deposit is cash you need, even if it may come back

Use separate rows for the landlord’s security deposit, DEWA deposit and any cooling or building deposit. Record the holder, receipt and refund conditions. The agency fee and service setup charges belong in a different category. Your initial cash requirement includes both, but your long-term cost estimate should not quietly treat every deposit as a permanent expense.

Keep evidence for the eventual settlement

Document the apartment’s condition before moving in and retain the landlord’s acknowledgement. At move-out, follow the provider’s final-bill and account-closure process and the lease’s handover requirements. Refunds can depend on outstanding bills or justified deductions; they are not automatically available on the day you leave.

An AED 100,000 apartment illustrates the calculation

Assume four equal rent payments, the usual 5% agency fee plus VAT, standard flat DEWA deposit and AED 155 activation, and online Ejari at AED 177.75. The table below is a planning example, not a universal quote. Add confirmed cooling, moving, internet and building charges separately. For one annual rent payment, replace the AED 25,000 first instalment with AED 100,000.

Add your actual furniture, repairs and first bills

Use the actual lease and provider quotes once you choose a home. Keep uncertain purchases and a household contingency separate from confirmed fees. Record who is responsible for repairs so you do not automatically budget for work the landlord has agreed to complete. Do not double-count a reservation payment that is credited to the deposit or rent.

If the costs feel unclear, WhatsApp or call the agent before the viewing: “For this exact apartment, what is the total payable before I receive the keys? Please separate the first rent payment, security deposit, agency fee and VAT, registration, utilities and building charges.” A professional agent should explain their charges clearly and identify any provider amount still awaiting confirmation. Ask for the breakdown in writing after a call.