Guide to Securing a Lease in the UAE: Deposits, Cheques, and Registration Fees

Leasing a property in the United Arab Emirates follows a clear and structured process, but it can feel complex if you are new to the market. Understanding rental contracts, security deposits, payment schedules, and mandatory registration fees will help ensure a smooth experience whether you are relocating, renewing, or securing a new home. This guide breaks down the essential elements of leasing in the UAE, with a particular focus on Ras Al Khaimah (RAK), where additional municipality rules apply.

1. Standard 12-Month Tenancy Contracts

Across the UAE, residential leases are typically structured as 12-month tenancy contracts. Short-term leases are available in some communities, but long-term annual contracts remain the legal and most common format.

A 12-month tenancy agreement provides:

• Fixed rent for the entire year
• Protection under UAE tenancy laws
• A clear framework for renewal or cancellation

In most emirates, including Dubai, Abu Dhabi, and Ras Al Khaimah, contracts are legally binding for the full year. Early termination usually requires mutual agreement between landlord and tenant or the inclusion of a pre-approved exit clause.

2. Security Deposits: What to Expect

A refundable security deposit is required at the start of every tenancy.
The standard deposit amount in the UAE is:

• 5 per cent of the annual rent for unfurnished properties
• 10 per cent for furnished properties in some areas, depending on the landlord and market norms

In Ras Al Khaimah, the most common rate is 5 per cent, regardless of furnishing level, although landlords may vary. This deposit is intended to cover damages beyond normal wear and tear and is returned after inspection at the end of the lease.

To protect yourself, always ensure:

• The security deposit is listed in the tenancy contract
• You receive a receipt or official acknowledgement
• A move-in and move-out condition report is completed

3. Rental Payments: Cheques and Transfer Options

The UAE traditionally uses post-dated cheques for rental payments. Most landlords accept:

• 1 to 12 cheques, depending on negotiation
• Bank transfers for the first payment
• Digital platforms in some communities

In competitive markets, landlords may prefer one or two cheques, while more flexible payment terms can be offered in exchange for a slightly higher rent. Ras Al Khaimah offers similar flexibility, and tenants should confirm the accepted payment method before signing.

4. RAK Municipality Registration: AED 25 + 5% Fee

In Ras Al Khaimah, all tenancy contracts must be registered with the RAK Municipality to make the lease legally valid. The official registration fee consists of:

• AED 25 administrative fee
• 5 per cent of the annual rent

This registration is often known as the Tenancy Contract Attestation, and it provides legal protection for both the landlord and the tenant. It is required to connect services such as utilities, to file complaints, and to maintain official records.

Some landlords cover the attestation cost, but most require the tenant to pay it. Always clarify the responsibility before signing a lease.

5. Additional Costs to Prepare For

Beyond rent and security deposits, tenants should budget for:

• Utility deposits (FEWA in RAK)
• Move-in permits if required by the community
• Agent commission, typically 5 per cent of the annual rent or a minimum amount, depending on the agency

These fees should be communicated transparently by the landlord or agent.

6. Tips for a Smooth Leasing Experience

To secure a lease confidently and avoid common challenges, consider the following:

• Verify all documents, including title deed and landlord ID
• Review the contract thoroughly before signing
• Negotiate payment terms, especially the number of cheques
• Keep digital and physical copies of all receipts and agreements
• Clarify maintenance responsibilities in writing

Understanding these aspects ensures a clear and secure rental process.

Conclusion

Leasing a home in the UAE is straightforward when you know the rules. With standard 12-month contracts, predictable security deposit requirements, and transparent registration fees, tenants can approach the process with confidence. In Ras Al Khaimah, the RAK Municipality fee of AED 25 plus 5 per cent of the annual rent is a key step that formalises the tenancy and provides essential legal protection.

Whether you are securing an apartment or a villa, being informed and prepared ensures a hassle-free move into your next home.