Long-term lease or holiday home
There are two legal ways to rent out property in Dubai: a long-term lease, usually 12 months, registered in Ejari, or short stays as a holiday home under a permit from Dubai's Department of Economy and Tourism (DET). A long-term lease gives steady income with little work. A holiday home can earn more gross, but costs, furnishing and occupancy risk are higher.
| Long-term lease | Holiday home | |
|---|---|---|
| Contract | Ejari, usually 12 months | DET permit, nightly bookings |
| Management fee | 5 to 8% of annual rent | 15 to 25% of revenue |
| Furniture | Usually unfurnished | Fully furnished and equipped |
| Utilities | Tenant pays DEWA | Owner pays DEWA, internet, cleaning |
| Income | Fixed, paid by cheques | Varies by season and occupancy |
For a holiday home you register on the DET Holiday Homes portal, upload the title deed, passport or Emirates ID, a DEWA bill in your name and an owners' association NOC if the building requires one, and receive a permit number that must appear on every listing. Published fees are about AED 1,520 for the first registration and roughly AED 300 to 370 per bedroom a year for the permit, capped at about AED 1,200 to 1,270 per unit; the permit is renewed every year. An individual owner can hold permits for up to eight units. Guests pay the Tourism Dirham per occupied night, collected by the operator.
Holiday homes are more exposed to tourism. Visitor numbers fell about 44% from January to August 2026 after the missile and drone attacks that began on 28 February, and Dubai deferred some hospitality fees in 2026 to support operators. Long-term demand held up better because the population kept growing, to 4.81 million by September 2026. Check the current DET fees in the portal when you apply.
Ejari: registering the lease
Every long-term lease in Dubai must be registered in Ejari, the DLD tenancy register. Without Ejari the tenant cannot connect DEWA or sponsor family visas, and neither side can file a case at the Rental Dispute Centre.
Registration is done online through the Dubai REST app or the DLD website for about AED 178 including VAT (about AED 220 at a service centre), and is usually approved in one or two days. You need the signed tenancy contract, the title deed details, the landlord's passport or Emirates ID, the tenant's ID and the DEWA premise number. In practice the agency registers it and the tenant often pays the fee; write in the contract who does it. Ejari is renewed with every new contract.
Rent increases: the RERA index rules
A landlord can raise rent at renewal only within the RERA rental index caps, and only with at least 90 days written notice before the contract ends. The caps come from Decree No. 43 of 2013 and depend on how far the current rent is below the average for similar homes.
| Current rent vs index average | Maximum increase |
|---|---|
| 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% |
Since 1 January 2025 the averages come from the DLD Smart Rental Index, which assesses each building on quality, finishes, services and location instead of using one average for the whole area. You check it on the DLD website with the Ejari number, the contract end date and the current rent. With rent growth down to about 1.5% a year in 2026, many renewals now fall in the 0% band.
The cap applies to renewals with the same tenant. For a new contract with a new tenant you set the rent at market level.
Deposits, cheques and who pays what
The market norm for a security deposit is about 5% of annual rent for an unfurnished home and 10% for a furnished one. It is returned at the end of the lease minus documented damage beyond normal wear.
Rent is usually paid by post-dated cheques: one to four a year is standard, sometimes up to twelve. Fewer cheques let you accept a slightly lower rent; more cheques widen the pool of tenants. Cheques need a UAE bank account, and several banks open accounts for non-residents.
- Tenant pays: DEWA, the 5% Dubai housing fee charged through the DEWA bill, the agency fee (commonly 5% of annual rent) and often the Ejari fee.
- Landlord pays: service charges to the owners' association, major repairs and replacement of worn-out systems, and contents insurance if the unit is furnished.
Service charges are the largest fixed cost. For apartments they often fall between AED 10 and 30 per sq ft a year, depending on the building; the approved rate for your building is published in the DLD service charge index (Mollak).
Net yield: the honest maths
Net yield is annual rent minus all owner costs, divided by the full purchase cost. Market reports quote average net yields in Dubai of 6.5 to 7% (gross about 7.1 to 7.4%), but those averages often deduct only service charges. Your own number depends on the building, vacancy and management.
An illustrative example: a one-bedroom apartment of 750 sq ft bought for AED 900,000 and let long-term for AED 72,000 a year.
| Item | AED per year |
|---|---|
| Rent | 72,000 |
| Service charge (750 sq ft x AED 15) | -11,250 |
| Management fee (5%) | -3,600 |
| Maintenance reserve | -2,000 |
| Vacancy (about 3 weeks between tenants) | -4,150 |
| Net income | 51,000 |
Gross yield on the price is 8.0%. With 4% DLD and other fees the full purchase cost is about AED 945,000, so the net yield is about 5.4%. With a mortgage, interest comes off as well. There is no UAE tax on rental income for individuals, but your home country may tax it. This is not tax advice.
Property management fees
A management company usually charges 5 to 8% of annual rent for a long-term lease, and 15 to 25% of gross booking revenue for a holiday home, with cleaning and linen often extra. For long-term lets the fee normally covers finding and checking tenants, the contract and Ejari, collecting cheques, maintenance calls and the renewal notice.
Ask what is not included: some companies charge separately for renewals (often AED 1,000 to 2,500) or for move-in and move-out inspections. Check that the company is licensed for property management in Dubai and that rent reaches your account directly, or is paid out monthly with statements.
Ending a tenancy: the 12-month notice
A Dubai landlord cannot simply refuse to renew. To take the property back at the end of a lease, you serve 12 months notice through a notary public or by registered mail, and only for reasons the law allows: sale, own use or use by a first-degree relative, demolition or major renovation. Email and WhatsApp do not count.
For own use you must show you have no other suitable property, and you cannot let the home to someone else for two years after you get it back (residential). Earlier eviction is possible if the tenant breaks the contract, for example by not paying rent within 30 days of a notice. These rules come from Law No. 26 of 2007 as amended by Law No. 33 of 2008. This is general information, not legal advice.
If you may sell in the next year or two, think about this before signing a new lease. The guide to selling property in Dubai explains how tenanted sales work.
Renting out from abroad
An owner abroad can rent out Dubai property without living there. What you need:
- A licensed agency or management company, with a signed management agreement or a power of attorney to sign leases.
- A UAE bank account for rent cheques, or a manager who collects and transfers the rent.
- DEWA set up: in the tenant's name for a long-term lease, in your name for a holiday home.
- Service charges paid on time: arrears also block the developer NOC when you later sell.
- Access to the Dubai REST app to see your title deed, Ejari and payments.
If you are still choosing a unit for rental income, a ready unit earns from the first month while off-plan starts only after handover; compare them in the off-plan vs ready guide. To estimate the rent and the sale value of your unit, use the free valuation on the sell page or write to me through the form below.
