Tenancy Contract Charges in Dubai

If you`re a tenant in Dubai, it`s important to understand the various charges that may be included in your tenancy contract. These charges can vary depending on the type of property and the landlord, so it`s important to read your contract carefully before signing.

Here are some common charges to look out for:

1. Security deposit: This is a sum of money paid by the tenant to the landlord at the beginning of the tenancy, which is held as a guarantee against any damage caused to the property during the tenancy.

2. Agency fee: Many tenants in Dubai use the services of a real estate agent to find a property. In this case, the tenant will usually be required to pay an agency fee, which can be up to 5% of the annual rent.

3. Ejari fee: This is a fee paid to the Dubai Land Department to register the tenancy contract. The fee is usually around AED 200.

4. DEWA connection fee: The Dubai Electricity and Water Authority (DEWA) requires a connection fee to be paid before the utilities can be activated. The fee varies depending on the property and the type of connection required.

5. Maintenance fee: Some landlords charge a maintenance fee to cover the cost of repairs and upkeep of the property. This fee can vary depending on the property and the landlord.

6. Late payment fee: If the tenant fails to pay the rent on time, the landlord may charge a late payment fee. This fee can be up to 5% of the rent.

7. Renewal fee: If the tenant wishes to renew the tenancy contract at the end of the lease term, the landlord may charge a renewal fee. This fee can be up to 5% of the annual rent.

8. Termination fee: If the tenant wishes to terminate the tenancy contract before the end of the lease term, the landlord may charge a termination fee. This fee can be up to one month`s rent.

9. Service charge: Some properties in Dubai have a service charge, which covers the cost of amenities such as swimming pools, gyms, and security.

10. Municipality fee: The Dubai Municipality charges a fee on all rental contracts. The fee is usually around AED 200.

It`s important to note that not all landlords charge these fees, and some may charge additional fees not listed here. Before signing a tenancy contract, make sure you understand all the charges and fees involved. If you`re unsure about any aspect of the contract, seek advice from a legal professional.

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