Key takeaways
- Annual-let management runs 5–8% of collected rent; short-let operators take 15–25% but can lift gross materially in the right building.
- Every tenancy must be registered with Ejari — an unregistered contract weakens your position in any rent or eviction dispute.
- Rent increases are capped by the RERA rental index, so buying below-market rent is a value opportunity rather than a problem.
- Service charges of 12–18 AED per square foot are normal; 25+ removes roughly two points of net yield.
- Budget 8–12% of gross rent for management, voids and maintenance when underwriting, not the optimistic version.
Annual let or short let
Annual lets are the default: one tenant, typically one to four cheques, predictable cash flow, 5–8% management. Best in commuter-driven communities like JVC, Arjan, Dubai Sports City and Business Bay where corporate demand is steady.
Short lets can gross 25–40% more in tourist-facing locations — Marina, Downtown, JBR, Palm-adjacent — but the operator takes 15–25%, you fund furnishing and utilities, and you need a DET holiday-home permit. Occupancy is seasonal. Underwrite it at 70% occupancy, not 90%.
Ejari, tenancy law and rent caps
Ejari registration is mandatory and cheap. It is what gives you standing at the Rental Dispute Centre, and without it a tenant can frustrate both a rent review and an eviction. Your manager should handle it as a matter of course.
Increases are governed by the RERA rental index, which permits stepped uplifts only where the contract rent sits materially below market. Ending a tenancy to re-let at market requires twelve months' notice served through a notary or registered mail. Plan reviews a year ahead rather than reacting at renewal.
Where the yield leaks
Service charges are the largest controllable variable and are set per building, not per community — check the actual figure before exchange. Then chiller charges, which in some towers are billed to the landlord rather than the tenant. Then furnishing depreciation on short lets, and the void between tenancies.
A 7.5% gross typically becomes 5.5–6% net once management, service charge, a three-week void and maintenance are deducted. Model that number, and every projection on our live inventory becomes easy to sanity-check.
Choosing a manager remotely
Ask for three things: RERA registration, a sample owner statement, and the average void across their portfolio last year. A manager who cannot produce the third is not measuring the thing that costs you most.
Insist on monthly statements, a named contact in your timezone, and a spending threshold above which they must seek approval. Rent should be paid into an account in your name, not held in a pooled operating account.
Frequently asked questions
How much does property management cost in Dubai?
Annual-let management is typically 5–8% of collected rent. Short-let operators charge 15–25% including guest servicing, listings and cleaning coordination.
Can I rent out my Dubai property while living abroad?
Yes. Non-resident owners let property freely. You appoint a RERA-registered manager who handles marketing, Ejari registration, rent collection and maintenance.
What is Ejari and do I need it?
Ejari is the mandatory government registration of a Dubai tenancy contract. Without it you have limited standing in rent-increase or eviction proceedings.
Can I increase the rent every year in Dubai?
Only within the RERA rental index calculator's permitted band, and with ninety days' written notice before renewal. Increases are limited where contract rent is already near market.