We really need to discuss how much should I pay my rent deposit in dubai.
When you finalise a rent contract, the real estate agent is always asking you to pay a rent deposit. However is classic to feel scammed and to ask yourself “how much should I pay my rent deposit?”.
We have already seen together the steps to rent a home in Dubai. You can find them here: article.
Se let’s visualize it, you have finally found the place of your dreams or maybe just a place. NExt step is to sign the contract. Contracts are really standard in Dubai and the template si done by the RERA. RERA is the Dubai land authority, responsible to manage litigations and the housing market.
You can change the addendum, but not the main part of the contract, which is standard.
3 different EXTRA costs are written in the contract:
Ejari registration. Ejari is an online registration system initiated by the Real Estate Regulatory Agency (RERA, see above). It requires all rental or lease agreements in Dubai to be registered on this portal. The main objective of the system is to legalize the relationship between landlords and tenants in Dubai. This document is necessary and mandatory because it validate your rent into the land department. WITHOUT this document you cannot apply for electricity and water! The cost is around 250aed. You can do it yourself or ask the real estate agency to do it for you, paying them a small fee.
Agency Commission. The real estate agency is asking you, the tenant, to pay them a 5% fee for arranging the deal. The fee is standard and most of the time you cannot negotiate on it. You can pay it with a bank transfer or by cheque.
Rent Deposit. This is what you are requested to pay to your landlord. It might happen that the deposit is held by the real estate agency, but it is rare. It happens when the agency is also managing the apartment on the owner behalf. There are two standard rent deposits: 5 and 10%.
The 5% fee is for the NON-furnished house fee. This fee is for all the unit not furnished.
The 10% fee is for the furnished apartments.
You can pay them via cheque or wire transfer. Owner can cash them and does not need to wait the end of the contract.
It is really important to save your deposit at the end of your renting, to make an inventory of everything. Therefore, write down every single object there is the unit when you take the ownership the first day. Make the inventory part of the contract and have both parties signing it.
Moreover, another good tip to save your rent is to make a video of the unit together with the agency when they give you the key. In the video focus on all the details of the unit, including the walls, the kitchen and everything that is not perfect. Make pictures as well. As many as possible.
Unfortunately, I have seen landlords trying to always keep the deposit for all the smallest problems they find. At the end, they held the money so it is hard to have them back, especially if you have no proves of how the unit was the first day.
