Buyer Guides · 4 min read
How Much Deposit Do You Need to Rent in Dubai?
The EQT Private Office · RERA-registered brokerage · Published August 28, 2026 · Updated September 24, 2026
To rent in Dubai you pay a refundable security deposit of about 5% of the annual rent for an unfurnished home, and around 10% for a furnished one. The deposit is only part of the cash you need on day one. You also pay 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. Dubai landlords take the full year in advance across 1 to 4 cheques, so the first cheque is often your biggest single payment. These figures are market conventions, not fixed by one law, so confirm the exact amounts in your tenancy contract before you sign.
Key takeaways
- •The security deposit is about 5% of annual rent for unfurnished homes and around 10% for furnished ones.
- •You get the deposit back at the end of the tenancy if you return the property in good condition, allowing for fair wear and tear.
- •Agency commission is about 5% of the annual rent plus 5% VAT, paid once.
- •Annual rent is paid in advance via 1 to 4 cheques; fewer cheques often means a lower headline rent.
- •Add a refundable DEWA utility deposit (around AED 2,000 for an apartment) and an Ejari registration fee of roughly AED 220.
- •These are market conventions, so confirm the exact amounts in writing before signing.
The security deposit: about 5% unfurnished, often 10% furnished
When tenants ask how much deposit they need, they mean the security deposit. The Dubai convention is about 5% of the annual rent for an unfurnished property and around 10% for a furnished one, since a furnished home has more that can be damaged.
On an unfurnished apartment at AED 120,000 a year, a 5% deposit is AED 6,000. On a furnished home at the same rent, a 10% deposit is AED 12,000.
The landlord or agent holds the deposit for the length of your tenancy. It is neither a fee nor rent: it secures the landlord against damage or unpaid obligations, and you should get it back.
Is the deposit refundable? Yes, subject to condition
Yes. You get the deposit back at the end of the tenancy if you return the property in the condition you received it, allowing for fair wear and tear. Landlords aim to return it within about 30 days of the lease ending, after checking the property and settling final utility bills.
The landlord can deduct for real damage beyond normal use, unpaid rent or outstanding bills. Photograph the property at move-in, keep the inventory or condition report, and ask for any deductions itemised in writing.
Think of the deposit as cash you will get back, but have it ready on the day you sign.
Agency commission and VAT
Most Dubai lettings go through an agent, and the standard commission is about 5% of the annual rent, plus 5% VAT on the commission. You pay it once when you sign.
On an annual rent of AED 120,000, a 5% commission is AED 6,000, and 5% VAT brings it to about AED 6,300.
The 5% is a market convention, not a legal rate, so you can sometimes negotiate it, especially on higher-value or longer leases. Confirm the commission and whether VAT is included before you commit.
Rent cheques: paying the year in advance
Dubai landlords receive the full annual rent up front as post-dated cheques, between 1 and 4 of them. 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. Four-cheque terms cost a little more but spread your cash flow.
You hand over the first cheque at signing, and it is often your largest upfront payment. On AED 120,000 a year, that is the full AED 120,000 on one cheque, or AED 30,000 as the first of four.
DEWA deposit and the Ejari fee
To switch on power and water, you register with DEWA, the Dubai utility provider. You pay a refundable deposit of around AED 2,000 for an apartment or about AED 4,000 for a villa, plus an activation fee of roughly AED 130 and VAT. DEWA returns the deposit 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 online yourself costs around AED 180 to AED 220; a trustee centre charges a little more.
Who pays the Ejari fee varies, so agree it with your agent. Separately, the 5% housing fee on your rent is billed gradually through your monthly DEWA account, not paid upfront.
A worked example: total upfront cash
Take an unfurnished apartment at AED 120,000 a year, rented through an agent.
Deposits and fees: 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 comes to around AED 14,650.
Now add the first rent cheque. On a single-cheque deal you pay the full AED 120,000, for a total of about AED 134,650 on day one. On a four-cheque deal the first cheque is AED 30,000, so you need about AED 44,650 upfront, with the other three cheques post-dated across the year.
Your own figures depend on the rent, furnishing, the cheque split and your contract terms, so confirm every amount in writing.
Frequently asked
How much is the security deposit to rent in Dubai?+
About 5% of the annual rent for an unfurnished property and around 10% for a furnished one. On an unfurnished home at AED 120,000 a year, that is roughly AED 6,000. Confirm the exact figure in your contract.
Is the rental deposit refundable?+
Yes. You get it back at the end of the tenancy if you return the property in good condition, allowing for fair wear and tear, with rent and bills settled. Landlords aim to return it within about 30 days of the lease ending.
What other upfront costs are there besides the deposit?+
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?+
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% is a convention, not a legal rate, so you can sometimes negotiate it.
What is the DEWA deposit for a rental?+
DEWA takes a refundable deposit to activate water and electricity: around AED 2,000 for an apartment and about AED 4,000 for a villa, plus a small activation fee and VAT. You get the deposit back when you close the account.
How much total cash do I need to rent an apartment in Dubai?+
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.
