RAK Tenants: 5% Rental Fee Now Split Into Monthly Utility Bills
Residents in Ras Al Khaimah will notice a significant change in their monthly utility statements as the municipality transitions how it collects the mandatory 5% annual rental attestation fee.
Instead of requiring a one-time lump-sum payment at a municipal counter, the fee is now being integrated into Etihad Water and Electricity (EWE) monthly bills. This new system divides the total annual cost into 12 equal monthly installments, making the payment process more manageable for tenants.
How the Monthly Installments Work
The fee will appear on your utility bill under the label "Municipal Fees" or "رسوم البلدية". To understand how this affects your monthly budget, consider the following examples:
- High-value rental: For a property with an annual rent of AED 100,000, the total 5% fee is AED 5,000. This will be split into monthly charges of approximately AED 416.67.
- Shared accommodation: For a shared flat with an annual rent of AED 24,000, the total fee is AED 1,200, resulting in a monthly surcharge of AED 100.
Moving Out and Cancellations
The municipality has clarified how the fee is handled if a tenancy does not last the full contract term:
If a tenant moves out before the end of their contract, the 5% fee is calculated based only on the actual period of occupancy rather than the full year. However, tenants should be aware that lease cancellations made within the first 10 days of a contract still incur the fee, which remains non-refundable.
Important Warnings for Tenants
Do Not Pay Landlords in Cash
One of the most critical pieces of advice from the municipality is to avoid paying the 5% fee in cash to landlords. Because the fee is now automatically collected through utility bills, paying a landlord directly could result in duplicating the charges already appearing on your bill.
Check Your Bills Regularly
Tenants are encouraged to review their Etihad WE bills to ensure the "Municipal Fees" line is present and correct. If you notice a full 5% charge being applied in a single month, or if the line is missing entirely, you