To rent out your property in Dubai long-term you need a written lease registered on Ejari, the DLD’s official system, which costs about AED 120 through the app. Without Ejari the tenant cannot connect power. The usual lease is one year, with rent paid in one or more cheques and a deposit returned at the end. You pay the service charge and repairs; the tenant pays power, water and the 5% municipality fee. At renewal, increases are capped by the RERA rental index and you must give 90 days’ notice. If you live abroad, we handle everything: we find the tenant, register the lease and send you the accounts.
In this guide13 sections
- Before you let: what needs to be ready
- Step by step: from the keys to the first rent
- The lease and Ejari registration
- Who pays each cost
- How much you can charge and what you keep
- Managing it yourself or through an agency
- Rent increases at renewal
- If you want the home back or want to sell
- If the tenant does not pay
- Renting out your Dubai property from the UK or the US
- Mistakes that cost the most
- Things to keep in mind
- Frequently asked questions
| Step | What you need |
|---|---|
| Before listing | Home handed over, service charge up to date |
| Lease | In writing, with rent, term and payment method |
| Registration | Ejari, about AED 120 through the app |
| During the year | Repairs are yours unless agreed |
| At renewal | Increase in line with the index, 90 days’ notice |
| To take it back | 12 months’ notice and a legal reason |
Before you let: what needs to be ready
If you bought off-plan, you can only let the home once it has been handed over. Before listing it, it is worth having this sorted:
- Handover and inspection. Do the snagging before handover and get the defects fixed. It is far easier with the home empty than with a tenant inside.
- The DEWA account. It is opened in your name when you get the keys. When the tenant moves in, they switch it to theirs with the registered lease.
- The service charge paid up. It is your biggest fixed cost as a landlord, so count it from day one.
- Furnished or unfurnished. Both let. Furnishing adds outlay and wear, so weigh it against the extra rent you can ask in that area.
- Long-term or holiday let. This guide covers long-term lets. If you are unsure, compare with the holiday home permit, which follows different rules.
Step by step: from the keys to the first rent
The process is much the same in any part of Dubai:
- Set the price. Base it on real rents in similar new buildings, not the average for the whole area, which mixes in older buildings.
- List with a permit. Every property ad in Dubai carries a numbered Trakheesi permit.
- Choose the tenant. Ask for their identity and residence documents, and check the rent fits their income.
- Sign the lease. Rent, term, payment method, deposit and who pays for what.
- Register it on Ejari. With the registration, the tenant connects power and water.
- Hand over the keys with an inventory. Dated photos of every room. They save arguments at the end.
If you live abroad, we do each of these steps for you and introduce you to the tenant before signing.
The lease and Ejari registration
Dubai’s tenancy law requires a written lease describing the home, its use, the term, the rent and the payment method, plus the owner’s name if the landlord is not the owner. Every lease, and every change to it, is registered with RERA through Ejari.
- Cost. Through the app, AED 100 plus AED 20 in fees.
- Term. One year is usual, but Ejari accepts leases of up to 10.
- Without Ejari the tenant cannot connect DEWA and you cannot bring a claim at the Rental Disputes Center.
- Payment method. It is freely agreed. If the lease does not set it, the law says four equal payments in advance. In Dubai rent is commonly paid by post-dated cheques: the fewer cheques, the more room you have to negotiate the price.
- Deposit. The law allows you to take one to cover damage, and requires you to return it, or what is left, when the lease ends.
During the lease, neither you nor the tenant can end it on your own: only by mutual agreement or on the grounds the law sets. And if the tenant stays on at the end without you objecting, the lease renews on the same terms for the same period or one year, whichever is shorter.
Who pays each cost
This is the part that raises most questions. Unless the lease says otherwise, the law splits it like this:
| Cost or duty | Who pays | Worth knowing |
|---|---|---|
| Building service charge | Landlord | The landlord’s biggest fixed cost |
| DEWA power and water | Tenant | Connected with the Ejari in their name |
| 5% municipality fee on the rent | Tenant | Charged on their DEWA bill |
| Maintenance and repairs | Landlord, unless agreed | Anything that stops the home being used properly |
| Day-to-day care of the home | Tenant | As anyone would look after their own home |
| Official fees for using the home | Tenant, unless agreed | Set by law if the lease says nothing else |
| Ejari registration | Agreed | About AED 120 through the app |
Maintenance can be split by agreement, for example with the tenant covering small repairs up to an amount. What matters is that it is in writing. In buildings with district cooling, ask how it is billed: sometimes the tenant pays it separately and sometimes it is part of the service charge.
How much you can charge and what you keep
Rent depends on the area, the type and, a great deal, on the age of the building. A new flat with good shared facilities lets above the area average. In new buildings, a 1-bedroom flat in JVC lets for AED 70,000 to 85,000 a year. At AED 80,000, the numbers look like this:
| AED | € | $ | |
|---|---|---|---|
| Annual rent of a new 1-bedroom flat in JVC | AED 80,000 | €19,567 | $21,784 |
| Service charge, 73 sq m at AED 184/sq m | AED −13,432 | €−3,285 | $−3,657 |
| Ejari registration | AED −120 | €−29 | $−33 |
| One empty month between tenants | AED −6,667 | €−1,631 | $−1,815 |
| Maintenance reserve | AED −1,500 | €−367 | $−408 |
| What you keep before management and tax at home | AED 58,281 | €14,255 | $15,870 |
Approximate figures, for illustration only.
That still leaves management, if you use it, and whatever you owe at home. To see the rent for your area and type, use the rent estimator, already set to a 1-bedroom flat in JVC. To compare areas, see the guide to Dubai rental yields by area, and for each area’s fees, the one on service charges by area.
Managing it yourself or through an agency
There are three ways to run a long-term let, and the right one depends mostly on where you live:
| You do it | Tenant search only | Full management | |
|---|---|---|---|
| Listing, viewings and choice | You, in Dubai or with someone there | The agency | The agency |
| Lease and Ejari | You | The agency | The agency |
| Repairs during the year | You | You | The agency |
| Cheques and renewal | You | You | The agency |
| Suits you if… | You live in Dubai and have time | You can handle repairs | You live abroad or prefer not to deal with it |
If you live outside the UAE, an air-conditioning fault in August cannot wait for your next trip. That is why, if you live abroad, full management is usually the easiest option. We handle everything and send you a clear summary of income and costs.
Rent increases at renewal
In Dubai you cannot raise the rent as you please at renewal. The cap depends on how far your rent is below the average in the RERA rental index for similar homes:
| Your rent against the index average | Maximum increase at renewal |
|---|---|
| Up to 10% below | 0% |
| 11% to 20% below | 5% |
| 21% to 30% below | 10% |
| 31% to 40% below | 15% |
| More than 40% below | 20% |
To change the rent or any term, you must notify the tenant at least 90 days before the lease ends. Without that notice, the lease carries on unchanged. And if you cannot agree, the rental tribunal sets a fair rent using the index and market conditions.
That is why the first price matters so much: if you let too cheaply to fill it fast, catching up with the market can take several renewals.
If you want the home back or want to sell
When the lease ends, simply not renewing is not enough. The law only lets you ask the tenant to leave for these reasons:
- You are going to sell the home.
- You want it to live in yourself or for a first-degree relative, and have no other suitable home.
- You are going to demolish or rebuild it with the required permits.
- It needs a full refurbishment that cannot be done with the tenant inside, backed by a Dubai Municipality technical report.
In every case you must give 12 months’ notice through a notary or by registered post. If you take it back to live in and the tribunal agrees, you cannot let it to someone else for two years.
Selling with the tenant in place is also possible: the lease continues with the new owner. For an investor buyer that can even be a plus, as they buy a home that already earns.
If the tenant does not pay
It is uncommon, but worth knowing how it works. If the tenant does not pay, you send a notice through a notary or by registered post. If they have not paid within 30 days, you can apply for eviction at the DLD Rental Disputes Center with the Ejari-registered lease.
- While the case runs, the tenant still owes the rent until they leave.
- You cannot cut off power or water or change the lock yourself: the law forbids it and the tenant can report it.
- A bounced cheque is no longer a crime unless there is bad faith, but it can be enforced directly.
The best protection is choosing the tenant well and collecting with few cheques. If it happens, we handle the notice and the DLD case for you.
Renting out your Dubai property from the UK or the US
In Dubai, letting works the same wherever you are from. What changes is how you receive the money and what you declare at home. The management agreement and the lease can be signed remotely. Long-term rent from a home in your own name is not subject to income tax in Dubai; you declare it in your country of tax residence, as the guide to Dubai property tax for UK and US residents explains. Dubai is on UTC+4 all year round.
Renting out your Dubai property from the UK
The rent can be paid into a UAE bank account or to your UK bank, in dirhams or pounds. UK residents normally report overseas rental income to HMRC through Self Assessment, after allowable expenses. Dubai is 4 hours ahead of the UK in winter and 3 in summer.
Renting out your Dubai property from the US
Being paid in dollars carries no currency risk, because the dirham is pegged to the dollar. US citizens and residents report their worldwide income to the IRS, including Dubai rent, after expenses and depreciation. If you open a UAE account and your foreign accounts exceed $10,000, you file an FBAR. New York and Miami are 9 hours behind Dubai in winter and 8 in summer.
Wherever you live, we run the let in Dubai and send you clear accounts for your adviser.
Mistakes that cost the most
- Letting without registering the lease on Ejari.
- Pricing a new building off the area average, or the other way round.
- Not putting in writing who pays for each repair.
- Handing over the keys without an inventory or photos.
- Forgetting the 90 days’ notice if you want to raise the rent.
- Assuming you can take the home back at the end of the year without a legal reason and 12 months’ notice.
- Cutting off services to a tenant who does not pay instead of going to the Rental Disputes Center.
Things to keep in mind
- Every long-term lease is registered on Ejari.
- You pay the service charge and repairs, unless agreed otherwise.
- The tenant pays DEWA and the 5% municipality fee.
- Increases at renewal are capped by the RERA index.
- To change terms, 90 days’ notice. To take the home back, 12 months and a legal reason.
- You can sell with the tenant in place.
- The rent is declared in your country of tax residence.
If you own a home in Dubai or are buying one to let, we find you a tenant, register the lease and, if you like, manage it all year.
Frequently asked questions
How do I rent out my property in Dubai if I live abroad?
Through an agency that runs it there: it finds the tenant, signs the lease, registers it on Ejari and handles repairs. You sign remotely and receive the rent in your account.
What is Ejari and how much does it cost?
It is Dubai’s official tenancy contract register. Through the app it costs AED 100 plus AED 20 in fees, and who pays is agreed in the lease.
Can I raise the rent whenever I want?
No. Only at renewal, with 90 days’ notice, and capped at 0 to 20% depending on how far your rent is below the RERA index average.
Can I ask the tenant to leave when the lease ends?
Only for specific reasons, such as selling, living there yourself or with a close relative, or a full refurbishment, with 12 months’ notice through a notary or registered post.
Who pays the service charge on a rented property?
The landlord. The tenant pays power, water and the 5% municipality fee on their DEWA bill.
Can I sell my Dubai property with a tenant in it?
Yes. The lease continues with the new owner until it ends.
Do I pay tax in Dubai on rental income?
No, if the home is in your name and let long-term. You declare it in your country of tax residence.
Can I rent out my Dubai property from the UK?
Yes. You sign remotely, and the rent normally goes on your UK Self Assessment return.
Can I rent out my Dubai property from the US?
Yes. Being paid in dollars carries no currency risk, and the rent is reported to the IRS with your worldwide income.
