DEWA, chiller and move in costs in Dubai

Moving into a Dubai property costs more than the rent cheque, and the extra items are predictable enough that there is no excuse for being surprised by them. Budget for them alongside the rent rather than after it.

Here is what you actually pay and in what order.

DEWA, the electricity and water connection

The Dubai Electricity and Water Authority supplies power and water to most of the emirate. You cannot open an account without a registered Ejari, which is why the registration comes first. Applications are made through the DEWA online services or app.

You pay a refundable security deposit, which is higher for a villa than for an apartment, plus a smaller non refundable activation and registration charge. The deposit comes back when you close the account at the end of the tenancy, after the final bill is settled.

Monthly bills combine electricity, water, sewerage and a housing fee. The housing fee is calculated as a percentage of the annual rent and is collected in instalments through the DEWA bill, so it appears on your utility bill rather than as a separate demand. New arrivals frequently miss this and then wonder why the bill is larger than the metered usage suggests.

Chiller, the one that catches people out

Air conditioning in many Dubai buildings is supplied by a district cooling provider rather than by DEWA, and it is billed separately. Which arrangement applies depends entirely on the building.

There are three models and they cost very different amounts.

• Chiller free. Cooling is included in the rent or the service charge. Best case for a tenant, and it is usually reflected in a higher rent.
• Chiller paid, consumption only. You pay for what you use, billed by the provider.
• Chiller paid with a capacity charge. You pay a fixed monthly capacity or demand charge regardless of usage, plus consumption. This is the one that surprises people, because the fixed element continues even when the property is empty.

Ask which model applies before you sign, and ask for a recent bill for the unit. A capacity charge on a large apartment can add several hundred dirhams a month whether you are there or not. Chiller providers also take their own refundable deposit and registration fee.

Ejari

Ejari registration is required for every tenancy and costs a modest fee, typically under AED 250 depending on the channel used. It is the gate to almost everything else: the DEWA account, a rental dispute case, and in many cases a visa application. Our guide to applying for Ejari covers the process, and renewing a tenancy contract covers the renewal.

The rest of the move in bill

• Security deposit. Typically 5 per cent of annual rent unfurnished, around 10 per cent furnished. See our note on security deposits.
• Agency commission. Commonly 5 per cent of the annual rent, paid once.
• Rent cheques. Dubai rents are usually paid in one to four cheques a year. Fewer cheques often buys a lower rent, so it is worth negotiating on.
• Access cards and parking registration. Most buildings charge for these and some take a deposit.
• Move in permit. Many buildings require one, restrict move in hours, and charge a fee or deposit for lift protection.
• Internet and telecom activation. Installation fees apply on a new connection.

The order to do it in

• Sign the tenancy contract and pay the deposit and first cheque.
• Register Ejari.
• Open the DEWA account using the Ejari number.
• Register with the chiller provider if the building is on district cooling.
• Arrange the building move in permit and access cards.
• Take dated photographs of the whole property on the day you get the keys.

That last one is not a cost, but it is the step that protects the largest single sum you have handed over. Our note on security deposits explains why.

For owners and buyers

The same accounts have to be transferred when a property changes hands, and the seller's final bill has to be settled before the developer will issue a no objection certificate. Our note on developer NOCs covers that, and the transfer appointment covers the day itself. If you are buying rather than renting, our guide to the cost of buying property in Dubai covers the purchase side.

Looking for a place now? Our properties for rent in Dubai page carries live stock, and we will tell you the chiller position on a unit before you view it rather than after.

Frequently asked questions

What is the DEWA deposit in Dubai?

DEWA takes a refundable security deposit when you open an account, with villas charged more than apartments, plus a smaller non refundable activation and registration charge. The deposit is returned when you close the account at the end of a tenancy, once the final bill has been settled.

Do I need Ejari before opening a DEWA account?

Yes. A registered Ejari tenancy contract is required to open a DEWA account in your name, which is why the registration is the first step after signing rather than something to get around to later. It is also required to bring a case at the Rental Dispute Centre.

What does chiller free mean in a Dubai rental?

It means the cost of air conditioning is included in the rent or the service charge rather than billed separately to the tenant. Where a property is not chiller free, cooling is billed by a district cooling provider, sometimes on consumption alone and sometimes with a fixed monthly capacity charge on top.

Why is my Dubai utility bill higher than my usage?

Most commonly because of the housing fee, which is calculated as a percentage of your annual rent and collected in instalments through the DEWA bill rather than demanded separately. It sits alongside your metered electricity, water and sewerage charges, which is why the total can look larger than consumption alone would suggest.

How much is agency commission for renting in Dubai?

It is commonly 5 per cent of the annual rent, paid once when the tenancy is signed. It is separate from the security deposit and from the rent itself, so budget it as part of the upfront cost rather than assuming it is folded into the first cheque.

How many cheques do I pay rent in?

Most Dubai tenancies are paid in one to four cheques across the year, with a smaller number occasionally agreed at six or twelve. Fewer cheques typically buys a lower headline rent, so it is one of the more useful things to negotiate on if you have the cash flow to support it.