Buyer Guides · 7 min read
How Much Deposit Do You Need to Rent in Dubai?
The EQT Private Office · RERA-registered brokerage · Published August 28, 2026
To rent in Dubai you typically pay a refundable security deposit of about 5% of the annual rent for an unfurnished home, and often around 10% for a furnished one. That deposit is not the only upfront cash, though. On top of it you usually budget a one-off agency commission of about 5% plus VAT, your first rent cheque, a refundable DEWA utility deposit, and a small Ejari registration fee. Landlords in Dubai are paid the full year in advance, split across 1 to 4 cheques, so the first cheque is often the largest single line. All the figures below are market conventions and indicative rather than fixed by a single law, so confirm the exact numbers in your tenancy contract before you sign.
Key takeaways
- •The security deposit is usually about 5% of annual rent for unfurnished homes and often around 10% for furnished ones.
- •The deposit is refundable at the end of the tenancy, subject to the property being returned in good condition allowing for fair wear and tear.
- •Agency commission is typically about 5% of the annual rent plus 5% VAT, paid once.
- •Annual rent is paid in advance, usually via 1 to 4 cheques; fewer cheques often means a lower headline rent.
- •You also budget a refundable DEWA utility deposit (around AED 2,000 for an apartment) and an Ejari registration fee of roughly AED 220.
- •All figures here are indicative market conventions, so always confirm the exact amounts in writing before signing.
The security deposit: about 5% unfurnished, often 10% furnished
The security deposit is the number most tenants mean when they ask how much deposit they need. In Dubai the widely used convention is about 5% of the annual rent for an unfurnished property, and often around 10% for a furnished one, because a furnished home carries more items that can be damaged.
So on an unfurnished apartment renting at AED 120,000 a year, a 5% deposit is AED 6,000. On a furnished home at the same rent, a 10% deposit would be AED 12,000.
This deposit is held by the landlord or agent for the duration of your tenancy. It is not an extra fee and it is not the same as rent. It is security against damage or unpaid obligations, and it is meant to come back to you.
Is the deposit refundable? Yes, subject to condition
The security deposit is refundable at the end of the tenancy, provided you return the property in the condition you received it, allowing for fair wear and tear. Landlords commonly aim to return it within about 30 days of the lease ending, once the property has been checked and final utility bills settled.
Deductions can be made for genuine damage beyond normal use, unpaid rent, or outstanding bills. To protect yourself, photograph the property at move-in, keep the inventory or condition report, and get any agreed deductions itemised in writing.
Because the deposit is returnable, it is best thought of as cash you get back rather than money you spend, but you still need it available on day one.
Agency commission and VAT
Most Dubai lettings involve an agent, and the standard commission is typically about 5% of the annual rent, plus 5% VAT on that commission. It is a one-off cost paid when you sign, not an annual charge.
On an annual rent of AED 120,000, a 5% commission is AED 6,000, and adding 5% VAT brings it to about AED 6,300.
The 5% figure is a market convention rather than a rate fixed in law, so it can sometimes be negotiated, particularly on higher-value or longer leases. Always confirm the commission and whether VAT is included before you commit.
Rent cheques: paying the year in advance
Dubai landlords are paid the full annual rent up front, spread across a number of post-dated cheques, usually between 1 and 4. One cheque means paying the whole year at once; four cheques splits it into quarterly payments.
Fewer cheques give the landlord more certainty, so single-cheque deals often come with a lower headline rent, while four-cheque terms cost a little more but ease cash flow.
Whatever the split, the first cheque is due at signing and is often your single largest upfront line. On AED 120,000 a year, that is the full AED 120,000 on a single cheque, or AED 30,000 as the first of four.
DEWA deposit and the Ejari fee
Before you can switch on power and water you register with DEWA, the Dubai utility provider. This involves a refundable deposit, commonly around AED 2,000 for an apartment and about AED 4,000 for a villa, plus a small activation fee (roughly AED 130) and VAT. The deposit comes back when you close the account.
You also register the tenancy through Ejari, the official system that records your contract with the Dubai Land Department. Filing yourself online is inexpensive, often in the region of AED 180 to AED 220; a trustee centre costs a little more.
Practices on who pays the Ejari fee vary, so confirm it with your agent. Separately, note the 5% housing fee tied to your rent, which is billed gradually through your monthly DEWA account rather than paid upfront.
A worked example: total upfront cash
Take an unfurnished apartment at an annual rent of AED 120,000, rented through an agent. Here is an indicative view of the cash you would need at the start.
One-off and refundable extras: security deposit at 5% is AED 6,000 (refundable); agency commission at 5% plus VAT is about AED 6,300; DEWA deposit is about AED 2,000 (refundable) plus roughly AED 130 activation; Ejari registration is about AED 220. That subtotal is around AED 14,650.
Add the first rent cheque. On a single-cheque deal you pay the full AED 120,000, giving a total of about AED 134,650 on day one. On a four-cheque deal your first cheque is AED 30,000, so the total upfront is about AED 44,650, with the remaining cheques post-dated across the year.
These numbers are illustrative. Your actual costs depend on the rent, whether the home is furnished, the cheque split, and what your contract specifies, so treat this as a planning guide and confirm every figure in writing.
Frequently asked
How much is the security deposit to rent in Dubai?+
It is typically about 5% of the annual rent for an unfurnished property and often around 10% for a furnished one. On an unfurnished home at AED 120,000 a year, that is roughly AED 6,000. These are market conventions, so confirm the exact figure in your contract.
Is the rental deposit refundable?+
Yes. The security deposit is refundable at the end of the tenancy, provided you return the property in good condition allowing for fair wear and tear, with rent and bills settled. Landlords typically aim to return it within about 30 days of the lease ending.
What other upfront costs are there besides the deposit?+
Budget for agency commission of about 5% plus VAT, your first rent cheque (the annual rent is paid in advance via 1 to 4 cheques), a refundable DEWA utility deposit of around AED 2,000 for an apartment, and an Ejari registration fee of roughly AED 220.
How much is agency commission when renting?+
The standard commission is typically about 5% of the annual rent, plus 5% VAT, paid once at signing. On AED 120,000 a year that is about AED 6,300. The 5% rate is a convention rather than a fixed legal rate, so it can sometimes be negotiated.
What is the DEWA deposit for a rental?+
DEWA requires a refundable deposit to activate water and electricity, commonly around AED 2,000 for an apartment and about AED 4,000 for a villa, plus a small activation fee and VAT. The deposit is returned when you close the account at the end of the tenancy.
How much total cash do I need to rent an apartment in Dubai?+
As an indicative example, on an AED 120,000 unfurnished apartment expect around AED 14,650 in deposits and fees plus your first rent cheque. That is roughly AED 44,650 upfront on a four-cheque plan, or about AED 134,650 if you pay the full year in one cheque.
