Renting Out Your Property in Dubai: Rules, Costs, Returns
Buying is the easy part. Letting a Dubai property properly means Ejari registration, a rent you are allowed to charge, and — if you want to run it as a holiday home — a licence from the Department of Economy and Tourism.
Here is what a landlord actually has to do, what it costs, and what the rules stop you doing.
Key Takeaways
- Ejari registration is mandatory for every tenancy — AED 177.75 on the government portals, AED 219.75 at a trustee centre.
- Rent increases are capped by the RERA index, on a sliding scale from 0% to 20% depending on how far below market your rent sits.
- 90 days' written notice is required before any increase or change at renewal.
- Short lets need a DET holiday-home permit — about AED 1,520 a year to self-manage — plus the Tourism Dirham, a 7% municipality fee and VAT.
- Operating without a permit carries fines from AED 5,000 up to AED 100,000 for repeat offences.
- The 5% housing fee is the tenant's, billed through their DEWA account — not a landlord cost.
Long let: the process
- Appoint an agent, or let it yourself. Letting commission is typically 5% of the annual rent; full management runs 5-8%.
- Agree the rent against the RERA index. Overcharging can get the Ejari registration rejected.
- Sign the tenancy contract and collect the deposit — commonly 5% of annual rent for an unfurnished unit and 10% furnished.
- Register Ejari. Without it the contract is not recognised by any authority, and your tenant cannot open DEWA or use it for a visa.
- Hand over with DEWA and cooling accounts transferred, and a condition report both sides sign.
In 2026 Ejari renewal is compulsory even when nothing in the contract changes, and the Smart Rental Index is the reference point for what you can charge.
What you may raise the rent by
| How far your rent sits below the index average | Maximum increase |
|---|---|
| Up to 10% below | No increase permitted |
| 11-20% below | 5% |
| 21-30% below | 10% |
| 31-40% below | 15% |
| More than 40% below | 20% |
Two practical points. The calculation uses the RERA index for that area and unit type, not your opinion of the market. And the 90-day notice is a hard requirement — miss it and the existing rent rolls over for another year.
In a softening market this matters less than it did: average Dubai rents fell 6.2% between the first and second quarters of 2026, so the more common conversation now is holding a good tenant rather than raising their rent.
Short lets: what the licence involves
Any stay under six months makes the property a holiday home, and that requires a permit from the Department of Economy and Tourism, which absorbed the former DTCM. There are no exceptions and enforcement is active.
- Permit: around AED 1,520 a year if you self-manage; an operator handles it for you at a fee.
- Tourism Dirham: AED 10-20 per night, collected from the guest.
- Municipality fee: 7%.
- VAT: 5% on operator services.
- Management: 15-25% of revenue if someone else runs it.
- Penalties: AED 5,000 for a first offence, rising to AED 100,000 for repeat breaches.
Check the building's own rules too. Several towers, particularly in Downtown, restrict short lets regardless of what the DET permits.
Run it on your own numbers. Set the price, the rent and the service charge and the calculator gives you the fees, the cash you need on day one and what the rent leaves after costs — in your own currency.
Dubai property calculator — costs, cash needed and net rent
Works from any country: pick your currency, or type your own rate. Fees follow the DLD schedule; rent figures are yours to set.
| Charge | AED | Your currency |
|---|
Fee basis: DLD transfer 4% of price, plus a DLD admin fee of AED 580 on a ready unit and AED 40 at Oqood on an off-plan one; registration trustee AED 4,000 below AED 500,000 and AED 4,200 above, plus 5% VAT; title deed and map about AED 500; agency 2% plus 5% VAT where used; mortgage registration 0.25% of the loan plus AED 290. Rates shown are indicative, read on 9 September 2026, and the pegged ones (USD and the GCC currencies) do not move — edit the rate box for anything else. This is an estimate to plan with, not a quotation, and it does not cover tax in your own country.
Long let or short let?
| Long let | Short let | |
|---|---|---|
| Gross income | Lower, predictable | Higher in the right location, seasonal |
| Costs | 5-8% management | 15-25% management, plus cleaning, linen, utilities |
| Occupancy risk | One void between tenants | Empty nights every month |
| Regulation | Ejari, RERA index | DET permit, Tourism Dirham, municipality fee, VAT |
| Works best in | Anywhere with employment nearby | Marina, Downtown, Palm, JBR |
Short-letting genuinely beats a long let in beachfront and tourist districts — Dubai Marina and Palm Jumeirah are the clearest cases — and rarely does in a commuter community where nobody wants to spend a week. Run the numbers on nights sold, not on the nightly rate.
What it costs to run a rental
On a AED 1 million apartment let at AED 75,000 a year:
- Letting commission at 5%: AED 3,750
- Management at 5%: AED 3,750
- Service charge, 800 sq ft at AED 12: AED 9,600
- Maintenance allowance: AED 3,000
- Ejari and admin: about AED 300
- Net rent: around AED 54,600, or 5.5% on the price
Notice what is not on that list: no property tax, no income tax, and no housing fee — that last one sits with your tenant. The full picture is in our Dubai property tax guide, and the area-by-area returns are in the yield guide.
If something goes wrong
Disputes go to the Rental Disputes Centre, which handles non-payment, eviction and contract disagreements. Two things decide how that goes: whether the tenancy is registered on Ejari, and whether you gave the correct written notice. Landlords lose cases on process far more often than on merit.
For eviction at the end of a term, the notice requirement is twelve months, served through a notary or registered mail, and only on the grounds the law allows — sale, personal use by the owner or a first-degree relative, or major works. It is not a decision you can take at renewal.
Getting the first let right
Most landlord problems in Dubai are set in motion during the first two weeks of marketing.
Price to the index, not to your purchase. What you paid is irrelevant to a tenant. Check the RERA index for that area and unit type, look at live listings for the same size and floor, and price into the market. An apartment listed 10% high sits empty for two months, and two months of void costs more than the 10% you were holding out for.
Present it properly. A deep clean, working AC, no maintenance snags and decent photographs move a unit faster than any price cut. In a year when citywide rents fell 6.2% in a quarter, presentation is where you compete.
Vet the tenant. Ask for a passport and visa copy, an Emirates ID, and either salary certificates or bank statements. A tenant who hesitates at that stage is telling you something.
Structure the cheques sensibly. Rent is usually paid in one to four cheques; fewer cheques means a higher effective rent and less collection risk, more cheques widens the tenant pool. Decide which you are optimising for.
Then register Ejari immediately. Everything else — DEWA, disputes, the tenant's visa paperwork — depends on it existing.
Frequently asked questions
Is Ejari registration mandatory in Dubai?
Yes, for every tenancy. It costs AED 177.75 through the Dubai REST app or DLD portal and AED 219.75 at a trustee centre. Without it the contract is not recognised, and the tenant cannot open a DEWA account or use it for visa purposes.
How much can I increase rent in Dubai?
It depends on how far the current rent sits below the RERA index: nothing if within 10%, then 5%, 10%, 15% and up to 20% as the gap widens past 40%. You must give 90 days' written notice before renewal.
Do I need a licence to rent on Airbnb in Dubai?
Yes. Any let under six months requires a Department of Economy and Tourism holiday-home permit, roughly AED 1,520 a year to self-manage, plus the Tourism Dirham of AED 10-20 a night, a 7% municipality fee and VAT. Fines start at AED 5,000.
Who pays the 5% housing fee on a rented property?
The tenant, through their own DEWA bill. It is not a landlord cost and should not appear in your yield calculation.
What does it cost to manage a rental in Dubai?
About 5% of annual rent as a letting commission and 5-8% for ongoing management, plus the service charge and a maintenance allowance. A holiday-home operator charges 15-25% of revenue instead.
If you own in Dubai and are not sure whether to let long or short, send us the unit and we will model both on real occupancy rather than headline rates.
