Two homes at the same annual rent can cost very different amounts to live in. One includes cooling in the rent. The other bills it every month, whether the AC runs or not. When you compare Dubai rental properties, the rent is only the starting point.
A few costs barely change from one property to the next. As of 2026, Ejari registration costs AED 177.75 when filed online through the Dubai REST app, or about AED 220 at a trustee centre. The ten costs below are the ones that do change, and they decide which property is actually cheaper. Agents can use them to brief clients before signing, and buyers and resellers can use them to judge how easily a unit will let.
- Rent and payment terms
Compare rents on the same payment terms. Landlords may be willing to accept less when the rent is paid in fewer cheques, because more money arrives upfront, so ask what the rent would be on one or two cheques.
- Security deposit
The customary deposit is 5% of annual rent for an unfurnished home and 10% for a furnished one. The tenancy law doesn’t fix a percentage, so the figure in the contract is what counts. On an AED 120,000 rent, going furnished adds AED 6,000 to the deposit. It is refundable but stays tied up for the whole tenancy.
- Agency commission
Commission is customarily 5% of the annual rent plus VAT. The rate isn’t fixed by the tenancy law, so it can be negotiated, and a home let directly by its landlord may carry none. Pay only a RERA-registered brokerage, and ask for a tax invoice.
- Housing fee
Dubai Municipality charges a housing fee of 5% of the rent registered in Ejari. DEWA collects it monthly on the utility bill. Because the fee tracks the rent, it widens the gap between properties. An AED 150,000 home carries AED 7,500 a year in housing fee, against AED 5,000 for an AED 100,000 home.
- Cooling
Similar homes can differ significantly on cooling, and “chiller-free” doesn’t always mean the same thing. There are three common setups:
- District cooling, paid by the tenant. A provider such as Empower bills cooling separately from DEWA. Empower publishes a consumption charge of AED 0.568 per refrigeration ton-hour and a demand charge of AED 750 per refrigeration ton per year, billed monthly, and both are subject to VAT. A unit allocated 6 tons pays AED 4,500 a year in demand charges before any cooling is used.
- District cooling, paid by the landlord. The landlord covers the charges. Some contracts split them, with the landlord paying the demand charge and the tenant paying for consumption.
- Split AC. There is no chiller bill, but cooling shows up as higher electricity use on the DEWA bill.
For owners, the demand charge keeps running while a unit sits empty.
- DEWA deposit and electricity use
DEWA takes a refundable deposit of AED 2,000 for an apartment and AED 4,000 for a villa, plus a small connection fee. Usage climbs sharply in summer, and a home with more rooms has more space to cool. Recent bills from the previous occupant are a useful guide.
- Maintenance and AC servicing
Contracts split maintenance in different ways. Some make the tenant pay for minor repairs up to a set amount per job, while others leave most of it with the landlord. Check who pays for AC servicing, pest control and appliance repairs, line by line. A lower rent paired with a tenant-heavy maintenance clause can end up costing more. For buyers, checking build quality before handover helps avoid defects that turn into repair bills later.
- Garden and pool upkeep
A private garden needs regular care and irrigation, and a private pool needs cleaning, chemicals and equipment checks. In a large villa with a garden and pool, such as some homes in The Villa, Dubai, these costs can outweigh a small difference in rent. Confirm in writing who covers each one.
- Service charges
Service charges pay for shared areas, security and community facilities. They are the owner’s cost, but some contracts pass part of them to the tenant, so check the wording. For buyers, service charges come straight off rental income, so compare units per square foot on the Dubai Land Department’s Service Charge Index.
- Exposure to rent increases at renewal
Rent increases at renewal are capped under Decree No. 43 of 2013 and measured against the DLD’s Smart Rental Index. If the rent is at or above the index average, or up to 10% below it, no increase is allowed. The cap rises in steps, up to 20% for rents more than 40% below the average. Either party wanting to change the terms must give the other 90 days’ written notice before the contract expires, unless they agree otherwise.
The cap applies to renewals, not new leases, so the first year’s rent is whatever the two sides agree. And a home priced far below its index average has the most room for a legal increase. Check the index before counting a low rent as a lasting saving.
What the upfront bill looks like
For an unfurnished apartment at AED 100,000 a year, the one-time costs before rent look like this:
| Cost | Amount (AED) |
| Security deposit (5%, refundable) | 5,000 |
| Agency commission (5% + VAT) | 5,250 |
| Ejari (online) | 177.75 |
| DEWA deposit (refundable) | 2,000 |
| Total | 12,427.75 |
Add the DEWA connection fee, any cooling connection charges, moving costs and the first rent cheque. After move-in, the housing fee adds about AED 417 a month.
Compare the full cost, not the headline rent
Comparing Dubai rental properties on all ten costs, and settling who pays each one before signing, gives agents firmer advice for clients and gives buyers a clearer sense of what makes a unit easy to let. Tranquil Developers describes its homes as built with thought, and choosing which one to rent deserves the same care.
Frequently asked questions
What costs should I compare besides rent when renting in Dubai?
Compare the security deposit, agency commission, housing fee, cooling arrangement, DEWA costs, maintenance terms, villa upkeep, any service charges passed to the tenant, and how much the rent could rise at renewal.
How much money do I need upfront to rent in Dubai?
For an unfurnished AED 100,000 apartment let through an agent, expect about AED 12,400 in deposits and fees before the first rent cheque. About AED 7,000 of that is refundable.
Who pays chiller charges in a Dubai rental?
It depends on the contract. In district-cooled buildings the tenant usually pays consumption, while the demand charge falls on the landlord or tenant as agreed. Where the landlord pays for district cooling, the tenant still pays DEWA for the indoor fan units and other electricity use.
Can a landlord raise the rent when I renew?
Only within the caps set under Decree No. 43 of 2013, which range from 0% to 20% depending on the Smart Rental Index. The rent on a new lease isn’t capped.
