Property guides · Guide 4 of 4
How to rent out property in Dubai in 2026: setting the rent, tenant checks, Ejari, your legal duties, eviction notice rules, costs and a net yield example.
In short
This guide is for owners letting a Dubai home, including the many who live overseas. It is general information, not legal advice.
Start with what similar homes in your building are achieving now. Check live listings and recent Ejari-registered contracts. Price against the market, not against what you paid.
For an existing tenant, the DLD index sets the ceiling. DLD launched the Smart Rental Index on 2 January 2025. It uses a building classification that rates quality, finishes, maintenance, location and services.
At renewal, the maximum increase depends on how far the current rent sits below the average for similar units.
| Current rent compared with market average | Maximum increase |
|---|---|
| Up to 10% below | None |
| 11% to 20% below | 5% |
| 21% to 30% below | 10% |
| 31% to 40% below | 15% |
| More than 40% below | 20% |
These bands come from Decree 43 of 2013. Some guidance also says rent cannot rise within two years of the original contract date*.
If notice is late or the index does not support the rise, you cannot impose it. Check the current figure with DLD before you quote a number to a tenant.
Tenants pay more for a clean, well-kept home. Fix small defects before photography, not after the first complaint.
Furnished lets suit short-stay professionals and can support a higher rent and a higher deposit. Unfurnished lets usually mean longer tenancies and less wear to replace. Choose one, and put an inventory in the contract if furnished.
A refit can change the rent a home commands. See our property renovations service.
Ask every applicant for the same documents. Typical requests are:
Tenants usually pay by post-dated cheques. Premium areas often take one or two cheques. Most standard lets use four to twelve, and fewer cheques can mean a lower rent.
| Item | Typical figure |
|---|---|
| Security deposit, unfurnished | 5% of annual rent |
| Security deposit, furnished | 10% of annual rent |
| Cheques | 1 to 12, by area and negotiation |
These are market norms, not legal minimums. Return the deposit, less lawful deductions, when the tenant leaves.
Use the unified tenancy contract and record any extra terms in an addendum. Typical addendum items are an inventory, a repair threshold and parking details.
Every tenancy must be registered on Ejari, under Article 4 of Law 26 of 2007. Without it, you may struggle to enforce the contract in the Rental Disputes Centre. Our guide explains why Ejari is important.
The tenant normally opens the DEWA account in their own name. Ask for the final bill when they leave, so no balance sits against the unit.
Law 26 of 2007, as amended by Law 33 of 2008, sets your duties. Articles 15 to 18 require you to hand over the property in good condition and not to interfere with the tenant’s use.
Diarise the 90-day date at least four months before expiry. Send the renewal offer in writing within that window.
If the parties cannot agree, either can ask the Rental Disputes Centre to decide a fair rent. Keep your evidence: index figures, comparable contracts and your notice.
A landlord can only end a tenancy on the grounds in Article 25. Notice rules differ by ground.
| Ground | Notice | How served |
|---|---|---|
| Unpaid rent | 30 days after written demand | Notary or registered mail |
| Breach of contract terms | 30 days to remedy | Notary or registered mail |
| Sale, own use or renovation at expiry | 12 months before expiry | Notary or registered mail |
Email, SMS or WhatsApp alone do not meet the standard. Our guide to eviction notice laws in Dubai goes into more detail.
If you evict for your own use or a first-degree relative’s use, Article 26 bars re-letting to a third party for at least two years. A former tenant may claim compensation if you break this. Further conditions can apply, such as having no other suitable property*.
The Rental Disputes Centre (RDC) hears landlord and tenant disputes. For eviction and rent claims the fee is 3.5% of annual rent, with a minimum of AED 500 and a maximum of AED 20,000, plus small administrative fees*. You will need the Ejari lease, your Emirates ID and, for eviction, the notarised or registered-mail notice. Documents must be in Arabic or legally translated.
If you plan to sell instead, read our Seller’s guide.
Short stays need a Holiday Home permit from the Department of Economy and Tourism, issued per unit. Tenants need their landlord’s NOC. A building NOC may also apply. Tourism Dirham is charged per bedroom per night. Do not list before the permit is issued.
Your costs are not just the management fee. Plan for these:
Management fees in Dubai commonly run about 5% to 10% of annual rent. Whoever you use, check what is included and whether the fee applies to contracted or collected rent.
This is an illustration with assumed figures, not a forecast. The 5% management fee is an assumption for the example only. It is not Live Dubai’s fee or a typical Dubai fee, and actual fees vary by agreement.
| Line | AED |
|---|---|
| Property value | 1,500,000 |
| Annual rent (gross) | 100,000 |
| Service charge (assumed) | -13,500 |
| Management fee (illustrative 5%, not Live Dubai’s fee) | -5,000 |
| Maintenance allowance (assumed 3%) | -3,000 |
| Void allowance (assumed 4%) | -4,000 |
| Net income | 74,500 |
| Gross yield | 6.7% |
| Net yield | 5.0% |
Try your own numbers in our investment calculator.
Letting from London or elsewhere is workable with the right support. A property manager acts on your behalf in Dubai. Typically they:
We cover this in property management in Dubai and in our guide to owning and letting Dubai property from the UK.
UK residents may need to declare overseas rental income. Dubai charges no personal income tax on rent, but UK rules can still apply. Read our UK tax on Dubai property guide, and speak to a qualified adviser.
Only as far as Decree 43 of 2013 allows, from nothing up to 20%. It depends on how far your rent is below the market average. You must also give 90 days’ written notice.
For sale, own use or renovation at expiry, 12 months, served by notary or registered mail. For unpaid rent or breach, 30 days.
Not to a third party for at least two years, under Article 26. Check the current text with a lawyer first.
Yes. Law 26 of 2007 requires it, and you will need it to file at the Rental Disputes Centre.
The landlord, unless the contract agrees otherwise. Tenants remain responsible for damage they cause.
Live Dubai International is a family-run firm, in business since 2003. We have offices in Barsha Heights, Dubai and in London.
Our management covers finding tenants, collecting rent, fixing repairs and sending monthly statements. Ask for a free proposal for your home: call +971 4 432 3920, WhatsApp +971 52 653 7538, or request your free proposal online.
* Figures marked with an asterisk vary between providers or may change. Please check the current position with us, or with the relevant authority, before relying on them.
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