Is it normal for an agency to charge a 5% commission on the total rent for a 3-year lease?

Be advised:

In the UAE, real estate agency fees are usually calculated on the first year’s rent only. Charging 5% on the total rent for a multiyear lease is not standard practice.

You should clarify this with the agency, request a revised contract reflecting the correct fee, and keep all communications in writing.

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Commission = (Commission percentage) × (First year's rent only)

Dear Questioner,

Thank you for your inquiry!

Please note that under UAE real estate practice, agency commission is generally charged at 5% of the annual rent for each lease contract executed, unless otherwise agreed in writing between the parties.

It is not standard practice for an agent to charge 5% on the entire multi-year rent value upfront, particularly if only one year’s rent is being paid at a time or if the lease is subject to renewal terms.

You may request that the agency revise the clause so that their commission applies to the first year’s rent only or clarify that the commission for subsequent years will only become payable if you choose to renew under their agency’s services.

We recommend carefully reviewing the agency agreement and the lease terms before signing and ensuring that all commission-related terms are clearly stated and mutually agreed upon in writing.

Kind regards,

Mohammed Salah

Legal Consultant

Before signing any contract or paying the commission:

Ask the agency to amend the commission clause to indicate 5% of the first year only.

Or negotiate a lower commission to reflect this information.

If they refuse, you have the right to request a new agent or file a formal complaint.