Real estate rental expenses. Is everything so obvious?

Real estate rental expenses. Is everything so obvious?

Renting a home is a difficult and responsible task. It is necessary to take into account the prices of the proposed objects, conduct analytics, find a professional agent, view all offers, collect documents, and many, many other different nuances.

Most often, people look at the specified price in the ad and count on a specific amount, without keeping in mind the many additional details of the transaction.

Additional expenses when renting a home

  •  Agency fees.

When renting residential real estate, the rate will be from 2 to 5% of the annual rent. When renting commercial premises – from 7 to 10% of the annual rent. It is unlikely to be possible to save money on this, because agents not only take on legal issues and paperwork, but also are the guarantor of the security of the transaction. The fee for the work is paid after the completion of the transaction, and the specific amount of the fee is prescribed in the contract and agreed upon before the start of work.

  •  Security deposit.

If the property is unfurnished and has no appliances – the security deposit is 5% of the annual rent, if the room has furniture and various equipment – 10% of the annual rent. Landlords require a deposit to protect their property from damage and wear. In the absence of any damage, the deposit is refunded after check-out. In cases with furnished units, you need to carefully read the contract, discuss each item and ask questions.

  • Payment for room cooling.

A collection based on counter metrics. The amount is calculated according to the principle – 0.568 fils, that is, 1 dirham – 100 fils. Various deposits for central cooling are included. The climate in Dubai forces all residents, without exception, to install air conditioners. It is impossible to imagine life here without them. It is also important to carefully read the contract and see a separate clause about the payment for services of this type. Sometimes the landlord takes these costs on himself, but most often the tenant has to pay for his comfort.

  •  Ejari registration fee.

By the laws of Dubai, all lease agreements longer than 6 months must be registered on a GCC country’s citizen or a residency permit holder. Such a requirement is controlled by the Dubai Land Department. Documents that confirm the fact of the transaction come into force only after such registration. Utilities will also be provided only after registration. Termination of the contract, as well as the conclusion, undergo the same registration procedure. The cost of such registration will cost about 220 dirhams ($ 60).

  • DEWA fees.

Here, a fixed fuel tariff is applied for monthly electricity and water consumption. These expenses are included in the total monthly bill. Utility bills are the main expense when renting real estate. Such fees include a security deposit (2000 dirhams for an apartment and 4000 dirhams for a villa), activation fee (110 dirhams for an apartment and 300 dirhams for a villa), administrative fee – 30 dirhams, technical connection, and management – 230 dirhams. The security deposit for water and electricity is refundable at the time of short-term departure or when you move out of the rental accommodation altogether.

When choosing potentially rented housing, always contact verified real estate agencies, study in detail all the proposed and hidden information, take into account the experience of friends, and calculate and always include a higher price than what is written in the rental advertisement.

Contact Eva Real Estate and we will help you in resolving all issues!