5 Hidden Relocation Fees in Dubai and Riyadh Nobody Warns You About

Relocating to Dubai or Riyadh can be intriguing, yet the offered rent price isn’t the entire cost of moving. Some of the costs that are easy to forget include utility deposits, registration charges, brokerage fees, and property fees, or costs, for new residents. The following 5 sum respective costs to monitor in every city.

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5 Hidden Relocation Costs in Dubai

Here are the 5 hidden relocation costs in Dubai that people usually are not aware of.

1. District Cooling Deposits

“Chiller-free” doesn’t necessarily imply a property that won’t have any costs that are associated with cooling. Account deposits, provider specific activation charges, etc., may apply to buildings that are connected to district-cooling systems. Prior to signing, have a question about whether cooling is part of the rent or who will have to bear the burden of connection fees.

2. Dubai Municipality Housing Fee

Consider Dubai’s Housing fee, which is paid as a part of your DEWA bills, and will be divided into monthly installments. DEWA says that housing fees are paid in equal monthly payments for 12 months. This also causes the rent to run higher than what they may be paying, as the extra fee may be added to the monthly rate.

3. Ejari Registration Charges

Another cost to consider when moving in would be Ejari registration. Currently, the online registration cost at Dubai Land Department (DLD) is AED 177.75 which includes registration, knowledge, innovation and the charges of services-partners. The total fee is different for trustee centre registration.

4. Brokerage and Service Charges

Broker’s commission is in addition to the rent itself and the tenant must ensure that any commission is known beforehand, and agreed upon in writing. May also result in other service charges under additional terms depending on property/building management.

5. Move-In and Utility Setup Costs

The cost of DEWA connection, internet installation, deposits and arrangements to make it into the building can happen simultaneously, resulting in a number of minor expenditures. While they can each be something minor, they can be very costly when added up for the first month.

5 Hidden Relocation Costs in Riyadh

Here are the 5 hidden relocation costs in Riyadh that people usually are not aware of.

1. Ejar Security Deposits

The Ejar system is used by the streets of Riyadh for rental contracts – any written security deposit is taken and stored through the Ejar. It’s important to note, that unlike many “non-refundable” deposits, Ejar’s will be refundable based on the move-in and move-out process.

2. Earnest Money or “Arboon”

The payment of “earnest money” may be agreed between the parties and may not exceed 5 percent of the value of a transaction. If the tenant fails to make the transaction due to no defect found in the property, the amount may not be returned. The plan must be made expressly in writing.

3. Brokerage Commission

According to Saudi Arabia’s real-estate brokerage regulations, home leasing commission rates equal 2.5 per cent of the first-year rent, in absence of an agreement to the contrary, in writing. The brokerage contract must state the brokerage commissions are to be paid by whom.

4. Ejar Contract Costs

The fee for documentation is posted at SAR 125 for Residential Ejar, and will be an annual service charge. Tenants must check with the contractors the amount required, and who should be paying before they sign the contract.

5. Appliances and Air Conditioning

Few apartments in Riyadh are furnished, so visitors can expect to have to pay for their own refrigerator, washing machine, kitchen utensils and air conditioning. This would truly depend on the unit and the landlord’s amenities.