Cost-of-Living Reality Check: What Dubai Rentals Include and What They Don’t

Dubai’s cosmopolitan lifestyle, vibrant economy, and world-class infrastructure continue to attract residents from around the globe. However, one of the biggest financial considerations for anyone moving to the city is the cost of renting. While rents may look straightforward at first glance, the inclusions and exclusions can significantly impact your overall budget. Potential tenants can explore Dubai rental properties on Bayut, a leading property platform in the UAE, to get an idea of the varieties and price ranges available, and understand what’s covered in the rent, and what isn’t, for a realistic cost-of-living assessment.

Overview of Rental Trends in Dubai

Rental prices in Dubai vary widely depending on the type of property, its size, and its location. Central areas like Downtown Dubai, Dubai Marina, and Business Bay tend to command higher rents, while suburban communities such as Bur Dubai and International City often offer more affordable options. Apartments are typically less expensive than villas, though the latter often come with larger spaces and private amenities. According to recent market reports, tenants should expect to allocate 30-40% of their monthly income towards housing, making it one of the largest components of living expenses in Dubai.

What’s Typically Included in Dubai Rentals

Not every rental contract is the same, but there are certain inclusions that tenants can often expect when leasing a property in Dubai. These inclusions can make a significant difference in both convenience and cost savings.

Basic Maintenance and Repairs

Landlords are generally responsible for major repairs and essential maintenance, especially structural and mechanical issues. This includes fixing issues with air-conditioning units, plumbing leaks, or electrical systems. Minor repairs, however, are often the tenant’s responsibility, unless otherwise stated in the tenancy contract.

Parking Spaces

Most apartment buildings and villas in Dubai come with at least one dedicated parking space included in the rent. Additional parking spaces may be available for a fee, depending on the building or community.

Building Amenities

Many rental properties, especially in modern apartment towers, include access to shared amenities such as swimming pools, gyms, play areas, and 24/7 security services. These amenities are typically covered within the rent and do not require additional payments, offering tenants added value.

What’s Not Included in Dubai Rentals

Despite the comprehensive facilities provided by many landlords and developers, several important expenses are usually excluded from rental contracts.

DEWA (Electricity and Water) Bills

Tenants are typically responsible for their own electricity and water bills, charged by the Dubai Electricity and Water Authority (DEWA). The cost can vary depending on property size and consumption habits.

Cooling or Chiller Charges

Cooling charges are sometimes included in the rent, but more often, they are billed separately. This is particularly true for properties in large communities or high-rise buildings where cooling is centrally provided. Tenants should clarify whether these charges are part of the rent before signing.

Internet and TV Packages

Telecommunication services, including internet, landline, and TV packages, are not included in most rental agreements. Tenants can choose from providers such as Etisalat or du and pay monthly subscription fees.

Furnishings and Appliances

While some properties are offered fully furnished or semi-furnished, many are rented out unfurnished. Furnished units typically command higher rents, but unfurnished properties give tenants flexibility in creating their own home environment.

Service Charges in Some Communities

In freehold developments, service charges for maintaining common areas are often passed on to the landlord. However, in some cases, landlords may include these costs in the rent, while in others, tenants might be asked to contribute indirectly through higher rent amounts.

Hidden Costs Tenants Should Watch Out For

Beyond the basic rent and utilities, several other costs can catch new tenants by surprise.

Agency Fees and Commission

Most rental agreements in Dubai involve a real estate agent, and tenants are usually required to pay a commission equivalent to 5% of the annual rent or a fixed minimum fee.

Security Deposits

A refundable security deposit, typically 5% of the annual rent for unfurnished properties and 10% for furnished ones, is required upfront. The deposit is intended to cover potential damages and is returned at the end of the tenancy, provided the property is handed back in good condition.

Ejari Registration Fees

Tenancy contracts in Dubai must be registered with Ejari, a system regulated by the Dubai Land Department. The registration fee is usually AED 220, and while sometimes covered by the landlord, it often falls on the tenant.

Move-in/Move-out Charges

Certain residential communities and buildings require tenants to pay move-in or move-out fees. These charges help cover the costs of security, building management, and logistics.

Differences Between Apartments and Villas in Terms of Inclusions

The type of property you choose can also influence what is included in your rental.

• Apartments: More likely to come with shared amenities like gyms and pools, but utilities and chiller charges are often excluded. Parking is usually limited to one space.
• Villas: Offer private gardens, parking for multiple cars, and more space. However, tenants may need to handle costs like landscaping, pest control, and higher DEWA bills due to larger property size.

Impact of Location on Rental Inclusions

Where you choose to live in Dubai greatly affects what’s included in your rent.

• Central Dubai: Premium rents often include access to high-end amenities, but most utility and cooling costs remain the tenant’s responsibility.
• Suburban Areas: Rents are generally lower, but inclusions vary widely depending on the landlord and property.
• Freehold vs. Leasehold Communities: In freehold areas, landlords may be more flexible in negotiations, whereas leasehold communities have more standardized structures.

Negotiating Inclusions with Landlords

Tenants should not shy away from negotiating rental terms. Some landlords may be willing to include chiller charges, partial furnishing, or maintenance packages to secure a tenant quickly. Having clarity in writing within the tenancy contract ensures there are no disputes later.

Tips for Tenants to Budget Effectively

• Request a full breakdown of all potential costs before signing.
• Factor in DEWA, chiller, and internet costs alongside rent.
• Keep an emergency buffer for unexpected repairs or moving charges.
• Use property portals such as Bayut to compare inclusions across different areas and property types.
• Consider long-term savings by choosing a property closer to work or public transport to cut commuting costs.

Renting in Dubai offers flexibility, variety, and access to some of the world’s most modern residential communities. However, the true cost of living goes beyond the advertised rental price. By understanding what’s included and what isn’t, tenants can make informed choices, avoid hidden surprises, and manage their budgets effectively. With careful planning and negotiation, renting in Dubai can be both manageable and rewarding.

FAQs on Dubai Rentals

Are pets allowed in Dubai rental properties?

Pet policies vary by landlord and community. Some buildings are pet-friendly, while others strictly prohibit pets. Always confirm before signing the contract.

Can rent in Dubai be paid monthly?

Most landlords prefer 1-4 cheques annually, but some accept monthly payments. This is more common in newer rental agreements and serviced apartments.

Is renter’s insurance mandatory in Dubai?

Renter’s insurance is not mandatory but highly recommended to cover personal belongings and liability.

Can a tenant terminate a lease early in Dubai?

Yes, but early termination usually requires landlord approval and may involve penalties unless stated in the tenancy agreement.