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[Home](https://dubairealestatecompany.com/)›[Dubai Property Guides](https://dubairealestatecompany.com/guides)›Renting out your Dubai property: a landlord's guideRenting out your Dubai property: a landlord's guide
===================================================

A Dubai property only becomes an investment once it is let well. This guide walks through the two rental models, the rules and what letting actually costs.

Annual tenancy: the stable default
----------------------------------

Dubai's standard rental contract runs for one year and is paid with one to four cheques; fewer cheques mean a higher rent. The mechanics:

- Every tenancy must be registered in the government's Ejari system. That registration is the basis for utilities, visas and any rent dispute.
- Rent increases at renewal are capped by the official RERA rental index. There is no cap on the initial asking rent.
- The deposit is typically 5% for unfurnished units and 10% for furnished ones.

An annual tenancy suits investors who want predictable income with little management. You screen a tenant, hand over once and inspect quarterly.

Holiday let: higher gross, more moving parts
--------------------------------------------

Dubai licenses short-stay rentals through the Department of Economy &amp; Tourism. Units in tourist corridors (Marina, Downtown, Palm and increasingly the lagoon communities) can beat annual rents by 20–40% gross. Budget the other side too:

- management fees of 15–25% of revenue;
- furnishing to hotel standard;
- utilities and internet on the owner's account;
- seasonality: winters peak, summers are softer.

The cost stack every landlord should model
------------------------------------------

- Service charges: AED 10–25 per sq ft per year, depending on the community
- Management: 5% on the annual model, 15–25% on the holiday model
- Maintenance reserve: about one month's rent per year
- Vacancy: 2–4 weeks per turnover

Add it all up and a well chosen mid-market unit still nets **four to six percent**, with zero income tax on top of that.

Our management service
----------------------

We screen tenants, register the Ejari, collect the rent, coordinate maintenance and report every quarter. Boring work, but it is exactly what keeps an asset 5,000 kilometres away performing.

*Own (or about to own) a unit? [Ask for our management terms](/contact).*

Ready for the next step?

The Dubai-based sister of Dutch Real Estate Company: Dutch diligence, Dubai opportunity.
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