The Landlord Guide: Running a Dubai Rental Legally and Profitably
Updated October 19, 2026 · 5 min read · Sources: RERA, Dubai Law 26/2007 and Decree 43/2013, Ejari; Dubai Land Department, Rental Disputes Center fee schedule; Rental Disputes Center, amicable settlement figures for January to September 2026; Department of Economy and Tourism, Decree 41 of 2013 and holiday homes fee schedule; Federal Tax Authority, VAT registration thresholds
Price it off the index, not the portal
Asking rents on portals are wishes; the Smart Rental Index and registered Ejari contracts are the market. Price at or slightly under the index for your building and you rent in days to stronger applicants; price above it and you pay in vacancy. A four-week void costs roughly 8% of annual income, more than most permitted increases gain you.
Your legal duties
Register the tenancy on Ejari (it protects your position in any dispute as much as the tenant's), maintain the property's major systems unless the contract shifts thresholds, and give proper notice for any change: 90 days before renewal for rent changes, 12 months by notary or registered mail for eviction on the lawful grounds of sale or personal use.
Raising rent, the enforceable way
Check your building's index figure, apply the Decree 43/2013 slab, and serve the increase in writing 90 days before renewal. Skip any step and the tenant can simply decline. If your rent has fallen far behind the index, the slabs recover it over two or three renewals: plan the path rather than fighting one big jump the RDC will strike down.
The real cost of a tenancy
Budget beyond the gross: service charges (the largest line, check our building data), 5% agency letting fee or a management contract at 5 to 8%, maintenance reserve, and DEWA/chiller gaps between tenancies. Our yield calculator turns any asking rent into a genuine net figure in a minute.
| Line | Typical range |
|---|---|
| Service charges | AED 10 to 30+ per sqft per year |
| Letting or management | 5 to 8% of rent |
| Maintenance reserve | ~5% of rent |
| Vacancy (4 weeks) | ~8% of annual rent |
Selling with a tenant in place
A registered tenancy survives the sale: the buyer inherits the tenant on the same terms. Selling tenanted works well for investor buyers (income from day one) and usually poorly for end-users, which shapes both your buyer pool and your price. If you plan to sell vacant, the 12-month notice clock has to start well before you list.
When it goes wrong: arrears, deposits and the RDC
Most problems with a tenant are paperwork problems, and the landlord with the paperwork wins them. If a cheque bounces or the rent stops, put the demand in writing, keep proof of delivery, and take it to the Rental Disputes Centre rather than act alone. Filing costs 3.5% of the annual rent for a dispute over eviction, renewal or the rent, between AED 500 and AED 20,000, or 3.5% of the sum for a money claim, between AED 500 and AED 15,000. Cases start with a conciliator, and a settlement approved by the supervising judge is enforceable like a judgment: the RDC closed 2,350 cases that way between January and September 2026, in six days on average. Bring the Ejari contract, copies of the cheques and every notice as it was sent. The deposit follows the same logic. Return it at move-out less genuine damage, with day-one photographs to prove the deduction, because a tenant can claim it back at the RDC, and for most deposits that costs them only the AED 500 minimum fee. If you sell, hand the deposit to the buyer, who becomes the landlord who returns it.
Long let or holiday home
Some owners weigh a holiday home licence against a tenancy. The licence itself is cheap to hold: the Department of Economy and Tourism charges AED 1,520 per unit to register and AED 370 per bedroom a year to renew, and letting short-term without a permit is an offence that DET fines. The building has to allow it, and some towers refuse holiday homes outright. A holiday home stay is not a tenancy, so Ejari, the rent index and the 12-month notice rules do not apply, which leaves the unit free to sell or use yourself. The trade is work and variance. You carry the utilities, the furnishing and an operator’s fee of typically 15% to 25% of bookings, and once taxable turnover passes AED 375,000 in 12 months you must register for VAT and charge 5% on stays, where a long residential lease is VAT-exempt. Our short-let guide runs both cases, the registered Ejari median against AirDNA’s Dubai averages: at average performance a Marina one-bed nets only a little more short-let than on a long let, so the licence wins only when the unit beats the average.
Related questions
How much can I raise the rent?
Only what the Decree 43/2013 slabs allow against the RERA index figure for your building, served in writing 90 days before renewal. Within 10% of the index, no increase is permitted.
Can I evict my tenant to relist at a higher rent?
No. Lawful eviction grounds are narrow (sale or personal use among them) and need 12 months' notarised notice. Evicting for personal use and then reletting exposes you to compensation claims.
Is a management company worth 5 to 8%?
If you are overseas or hold several units, usually yes: collections, renewals served on time, maintenance handled at trade rates, and no missed 90-day windows, which alone can pay the fee.
What does an empty month cost me?
Roughly 8% of annual income for four weeks, before DEWA and chiller gaps. It is the number to weigh against holding out for a higher asking rent.
What does it cost to take a tenant to the Rental Disputes Centre?
3.5% of the annual rent for a dispute over eviction, renewal or the rent, between AED 500 and AED 20,000, or 3.5% of the sum for a money claim, between AED 500 and AED 15,000. Cases start at conciliation, and a settlement approved by the judge is enforceable like a judgment.
Can I let my Dubai apartment as a holiday home instead?
Yes, with a holiday home permit from the Department of Economy and Tourism, held by you or a licensed operator: AED 1,520 per unit to register and AED 370 per bedroom a year to renew. The building must allow it, and letting without a permit is fined.
