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Why hotel and serviced apartments skip the agency commission and large deposit of a standard Dubai lease.
A standard Dubai residential lease usually comes with a 5% agency commission and a refundable security deposit of around 5% of the annual rent. Hotel and serviced apartments booked directly through a host typically have neither.
Agency commission applies to brokered residential leases involving a real estate agent. Booking a hotel or serviced apartment directly through the host or platform cuts the broker out of the transaction entirely, so there's no commission to pay.
Instead of a large refundable security deposit held for the length of a 12-month lease, most hotel apartment bookings ask for a smaller damage deposit, or none at all on shorter stays — reflecting the shorter, more flexible nature of the booking.
Typically just the first month's rent to confirm the booking, sometimes alongside a modest refundable deposit for damages — a fraction of the upfront cash needed to secure a standard annual lease.
The monthly rate on a hotel or serviced apartment is generally higher than the equivalent monthly cost of a bare residential lease — the savings on commission and deposit need to be weighed against that when comparing total cost for longer stays.
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