Service charges in Dubai, explained for owners and buyers
Owning and letting
What the annual charge pays for, who sets it, where to look it up before you buy, and what the law does when an owner stops paying.


The law behind a Dubai tenancy, what you pay up front, how much the rent can rise, the notice you are entitled to, and where to go when something goes wrong.
Dubai Law No. 26 of 2007, amended by Law No. 33 of 2008, governs the relationship between landlords and tenants. It fixes the notice periods, the grounds on which a landlord can take a home back, and the rule that a contract runs to its end date even if the home is sold. Decree No. 43 of 2013 limits rent increases. The Rental Disputes Center, set up by Decree No. 26 of 2013, decides disputes.
The centre's jurisdiction covers rent disputes across Dubai, including the free zones, except where a free zone has its own tribunal.
| Cost | Amount | Set by |
|---|---|---|
| Security deposit | 5% of the annual rent unfurnished, 10% furnished, refundable at the end | Market custom |
| Agency fee | About 5% of the annual rent plus VAT, often with a minimum the agency sets | Market custom |
| Ejari registration | AED 177.75 online through Dubai REST or the DLD website | Dubai Land Department |
| DEWA deposit | AED 2,000 for an apartment, AED 4,000 for a villa, refundable | DEWA |
| Housing fee | 5% of the annual rent, collected monthly on the DEWA bill | Dubai Municipality |
The deposit and the agency fee are custom, not law. Bayut's guide to the costs of renting gives the deposit as 5% unfurnished and 10% furnished, and the agency fee as 5% or more of the annual rent. Property Finder's guide puts the residential agency fee at about 5%, often with a minimum of around AED 5,000, paid by the tenant with VAT added. Both can be negotiated, and the agency fee must be declared in the contract.
The landlord may deduct from the deposit for damage beyond ordinary wear, which in practice means repainting and minor repairs. Photograph the home on the day you move in and send the pictures to the agent.
Rent in Dubai is usually paid by cheque, in a number of instalments agreed in the contract. One cheque for the year is the landlord's preference and often earns a lower rent; two or four cheques are common. The cheques are post-dated to the instalment dates and handed over when the contract is signed. Keep the account funded on each date.
Keep a copy of every cheque and a receipt for every payment, naming the property and the period.
Article 4 of Law No. 26 of 2007 requires every lease to be registered with RERA. The system is Ejari, and either side can register, though the tenant usually pays. Registration online through the Dubai REST app or the DLD website costs AED 177.75: AED 100 registration, AED 10 knowledge fee, AED 10 innovation fee, AED 55 service fee and VAT. A registration trustee centre charges a AED 95 service fee instead of AED 55.
You need the signed contract, your passport, visa and Emirates ID, and the landlord's title deed and identification. The Ejari certificate is what DEWA asks for to connect water and electricity, what your employer or school may ask for as proof of address, and what the Rental Disputes Center requires before it hears a case. Renew it with each renewal of the contract.
Dubai Electricity and Water Authority connects the home in your name once Ejari is registered. Bayut lists the refundable deposit as AED 2,000 for an apartment and AED 4,000 for a villa, with a connection charge of AED 100 for small meters and AED 300 for large ones plus small knowledge and innovation fees. The 5% housing fee is a Dubai Municipality charge on tenants, spread across the year on the DEWA bill. In buildings with district cooling, the chiller account is separate, and the contract should say who pays it.
Not during the contract. At renewal, Decree No. 43 of 2013 allows an increase only when the current rent sits more than 10% below the average for similar homes in RERA's index, and caps it in bands:
| Your rent against the index average | Largest increase allowed |
|---|---|
| Up to 10% below | None |
| 11% to 20% below | 5% |
| 21% to 30% below | 10% |
| 31% to 40% below | 15% |
| More than 40% below | 20% |
Since January 2025 the average comes from the Dubai Land Department's Smart Rental Index, which rates each building on its specification, finishes, location and facilities. You can check the index in the Dubai REST app. A landlord who wants an increase must tell you at least 90 days before the contract ends, under Article 14 of Law No. 26 of 2007, unless the contract sets a different period. An increase outside the bands, or one notified late, can be challenged at the Rental Disputes Center.
During the contract, only on the grounds in Article 25(1) of Law No. 26 of 2007, which include not paying rent within 30 days of a written notice, subletting without the landlord's written consent, using the home for an illegal purpose or causing it damage. A sale of the building is not a ground: the new owner takes over the contract.
At the end of the contract, only on the grounds in Article 25(2), as amended by Law No. 33 of 2008: the owner wants to sell, the owner or a first-degree relative needs the home and has no other suitable property, the building is to be demolished and rebuilt, or it needs major maintenance that cannot be done with you in it. In every case the landlord must give at least 12 months' notice before the eviction date, through a notary public or by registered mail. A message or an email does not count.
If you want to leave or change the terms yourself, you give the same 90 days' notice before expiry. Leaving early is governed by the contract, which usually sets a penalty, so read that clause before you sign.
The Rental Disputes Center is a judicial body within the Dubai Land Department, established by Decree No. 26 of 2013. It has exclusive jurisdiction over rent disputes between landlords and tenants in Dubai, including the free zones that have no tribunal of their own. Since 2019 it also hears disputes over jointly owned property under Law No. 6 of 2019.
Typical tenant cases are an increase outside the bands, a deposit not returned, an eviction notice served without 12 months or without a notary, and repairs the landlord will not do. Bring the Ejari certificate, the contract, the cheques and every message.
Dubai Law No. 26 of 2007, as amended by Law No. 33 of 2008, with rent increases limited by Decree No. 43 of 2013. Disputes are decided by the Rental Disputes Center, set up by Decree No. 26 of 2013.
By market custom 5% of the annual rent for an unfurnished home and 10% for a furnished one. It is refundable at the end, less any deduction for damage beyond ordinary wear. The figure is custom, not a legal cap.
By market custom about 5% of the annual rent plus VAT, often with a minimum the agency sets. It is negotiable and must be declared in the contract.
Yes. Article 4 of Law No. 26 of 2007 requires every lease to be registered with RERA through Ejari. Online registration costs AED 177.75, and DEWA, employers and the Rental Disputes Center all ask for the certificate.
Nothing if your rent is within 10% of the Smart Rental Index average for similar homes. Otherwise 5%, 10%, 15% or at most 20% depending on how far below the average it sits, under Decree No. 43 of 2013, and only with 90 days' notice before the contract ends.
Only at the end of the contract and only with at least 12 months' notice served through a notary public or by registered mail, under Article 25(2) of Law No. 26 of 2007 as amended. Until then the contract stands, and a buyer takes it over.
It decides disputes between landlords and tenants in Dubai. A case goes first to conciliation, then to a first instance committee, with an appeal committee and an enforcement department. Cases can be filed through the Dubai REST app.
The tenant. Bayut lists the refundable DEWA deposit as AED 2,000 for an apartment and AED 4,000 for a villa, and the Dubai Municipality housing fee as 5% of the annual rent, collected monthly on the DEWA bill.
Owning and letting
What the annual charge pays for, who sets it, where to look it up before you buy, and what the law does when an owner stops paying.

Owning and letting
The landlord's side of Dubai tenancy law: registering the contract, what rent increase the index allows, the two notice rules, holiday lets and tax.

Owning and letting
From the listing agreement to the transfer at the trustee office: the forms you sign, the certificates you need, the fees by custom, and how an off-plan unit is sold before handover.
