How to Rent Out Your Dubai Property: Process and ROI

Check Your Title Deed and RERA Rules First

Confirm your property is freehold and the title deed shows no restrictions on leasing. RERA requires all rental contracts to be registered through Ejari. Without registration the contract is not legally enforceable and you cannot collect rent through the courts.

Most buildings also have community rules on short-term lets. Check the building management office before you advertise on Airbnb or Booking.com.

Appoint a Licensed Real Estate Agent

Only RERA-licensed agents can market and sign tenancy contracts. Expect to pay 5 percent of the annual rent plus 5 percent VAT as agency commission on a standard one-year lease. Some agents offer a lower rate for renewals.

Prepare a full inventory list and have it signed at move-in. This protects you if the tenant damages fixtures or leaves unpaid DEWA bills.

Set the Right Rental Price

Use the RERA rental index on the Dubai REST app to see what similar units achieved in the last quarter. In 2026, prime JLT and Business Bay one-bedroom units average AED 85,000 to AED 110,000 per year. Overpricing by more than 8 percent usually adds weeks to the vacancy period.

Factor in service charges. Tenants pay them directly in most buildings, but you remain liable if they default. Budget 2 to 3 percent of annual rent as a vacancy and maintenance reserve.

Understand Your Net ROI

Gross yield in Dubai typically ranges from 6 to 8.5 percent in 2026. After agency fees, 5 percent DLD transfer fee on purchase (already paid), service charges, and occasional repairs, net yield often lands between 4.5 and 6.5 percent.

Foreign owners pay no personal income tax on rental income. However, you must still declare the income if you file tax returns in your home country. Keep all Ejari contracts and bank statements for seven years.

Handle the Move-In and Ongoing Management

Collect a 5 percent security deposit plus one month’s rent in advance. Both must be noted on the Ejari contract. Conduct a joint inspection with photos and video on the same day the tenant receives the keys.

Decide whether to self-manage or hire a property manager. Full-service management costs 7 to 10 percent of collected rent and includes chasing late payments and arranging repairs up to AED 1,500 without your approval.

Renewal and Exit Planning

Send a renewal notice 90 days before expiry. If the tenant stays, a new Ejari contract is required even if rent stays the same. If you plan to sell, give the tenant 12 months’ notice under current RERA rules.

Keep a sinking fund of at least AED 15,000 per bedroom for major works such as AC replacement or waterproofing. This prevents sudden cash calls that reduce your annual yield.

Ask Tovi for more

Tovi knows current 2026 UAE rules, fees, and processes. Ask anything. Ask Tovi free →

Got more UAE questions?

Tovi knows current 2026 UAE rules, fees, and processes. Ask anything — visas, banking, housing, schools. Ask Tovi free →