Average Rent in Dubai: Everything You Need to Know

Are you a newcomer to Dubai, searching for your inaugural residence to rent? Or perhaps you’re aiming to settle in Dubai or upgrade your current living situation and experience staying in the best areas to live in Dubai? 

Dubai, as an emirate, presents an extensive array of options to cater to diverse lifestyle preferences. Undoubtedly, when it comes to renting a home, the location holds paramount importance. However, it is equally crucial to comprehend the associated average rent in Dubai, as your budget will ultimately dictate your choice of living arrangements.

Know Your Budget

Housing tends to be the most significant monthly expenditure for the average individual. As a general guideline, it is recommended that no more than 30% of one’s salary is dedicated to housing expenses.

To illustrate, if someone earns AED 20,000 per month, it is advisable to allocate AED 6,000 or less each month towards housing, which totals AED 72,000 per year.

Average Rent in Dubai Communities For One Year

How to rent a property?

Once you get in touch with the agent, property manager, or landlord (if you’re searching directly for the best areas to live in Dubai), you can arrange a convenient time for a meeting. Many agents are available on weekends as well. It’s advisable to initiate this process once you have obtained your residence visa and have a checkbook from your bank. 

Insist on a complete tour of the building and thoroughly examine all the available facilities. If you feel unsatisfied, remember that your agent may have other properties to offer for consideration.

Once you have identified a suitable property, you can secure it by paying a security deposit, which typically amounts to 5% of the annual rent. Make sure that the agent shows you some of the best areas to live in Dubai communities with standard facilities.

Things you should know before renting a house in Dubai:

Tenancy agreements in the UAE typically have a duration of one year. To initiate the tenancy contract, you will need to provide copies of your UAE passport and residence visa.

Payments are commonly made every quarter, although some landlords may request three checks instead of four. Opting to provide two checks might lead to a more favorable rental agreement. Regardless, at the time of signing the contract, you are required to provide postdated checks, and it is important to obtain a receipt for them.

A security deposit is also mandatory, and you have the option to pay it in cash.

Remember that tenancy contracts are legally binding for a year, so if you terminate the contract prematurely, you will be liable to pay a penalty, usually equivalent to two months’ rent and you must provide a two-month notice period before vacating the property.

Payment Methods

Payment is facilitated through bank cheques. 

In consultation with the tenant and with your approval, the agent negotiates the frequency of payments per year, typically ranging from one to four. 

The total rent amount is divided by the agreed number of payments, and the tenant issues postdated cheques accordingly, in line with the agreed dates.

Conclusion

Before signing a rental agreement, it is crucial to have a clear understanding of your budget. This ensures that your financial commitment doesn’t strain you at the end of each month.

Having a comprehensive understanding of all costs associated with renting will enable you to start your property search with confidence