The Landlord Guide: Running a Dubai Rental Legally and Profitably
Updated August 10, 2026 · 7 min read · Sources: RERA, Dubai Law 26/2007 and Decree 43/2013, Ejari
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.
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.
