The Landlord’s Guide
Dubai Guides
Everything an owner needs to let property in Dubai well, in nine short chapters: setting the rent, the contract, renewals, ending a tenancy, holiday homes, costs and tax. Written by the Redwood Heritage Real Estate team and checked against the rules of the Dubai Land Department, the Real Estate Regulatory Agency and the Federal Tax Authority.
- 20%Highest rent increase allowed at renewal
- 90 daysNotice to change terms before the contract ends
- 12 monthsNotice to recover the property at expiry
- AED 177.75Ejari registration online
Chapter 1
Long term or short term
At a glance
A long-term tenancy gives steady income under Dubai’s tenancy law. A holiday home lets the property by the night under a permit from the Department of Economy and Tourism, with more income potential and more work.
Most Dubai landlords let on annual contracts. The relationship is governed by Law No. 26 of 2007, as amended by Law No. 33 of 2008, which sets out the rights of both sides, and every contract is registered with the Dubai Land Department through Ejari.
Short-term letting is a separate regime. The property must hold a holiday home permit, issued to the owner or to a licensed holiday home operator, and guests are hosted much like a hotel. The choice affects your income, your workload and, as Chapter 7 explains, your tax position.
Not sure which suits your property? Ask a Redwood advisor.
Chapter 2
Setting the rent
At a glance
For a new tenant, the rent is agreed freely between you. For a renewal, the increase is capped by how far the current rent sits below the official Rental Index.
The Dubai Land Department publishes the Rental Index, which gives the average rent for comparable properties and calculates the increase permitted at renewal. Since January 2025 it has been the Smart Rental Index, which also classifies each building by its structure, finishes, maintenance, location and services.
Pricing a new let well comes down to evidence: recent rents achieved for similar units in the same building or community, the condition of the property, and the time of year. A realistic rent lets faster, and every empty month costs more than a small discount.
What does the rent really return?
Enter the price and the rent, and the calculator works out your net yield after service charges and costs.
Chapter 3
The contract and Ejari
At a glance
Use the unified tenancy contract and register it in Ejari. Registration is mandatory and costs AED 177.75 online or AED 220 at a trustee centre.
The tenancy is written on the Dubai Land Department’s unified tenancy contract, with any additional terms attached. Registration in Ejari is mandatory. It is normally done by the landlord or the property manager, and the tenant can register if the landlord does not.
| Item | What applies |
|---|---|
| Ejari registration | AED 177.75 online or in the Dubai REST app; AED 220 at a trustee centre |
| Security deposit | Taken to cover the condition of the property, returned or the balance returned at the end of the lease |
| Maintenance | The landlord’s responsibility for repairs affecting use, unless the contract says otherwise |
| Handover | The property must be handed over in good condition |
Clear terms prevent most disputes: who pays for minor repairs, how the rent is paid, the number of cheques, and what happens to the deposit. A short inventory with photographs at check-in is worth the hour it takes.
Free download
The Landlord’s Checklist
Every step from listing to renewal, with the notice dates that matter, on two pages you can print or save as a PDF.
The Landlord’s Checklist
Before you let
- Decide between a long-term tenancy and a holiday home
- Check the Rental Index and recent rents for comparable units
- Service charges paid and the property in good condition
- Work only with a RERA-registered broker
Signing the tenant
- Unified tenancy contract signed, with any additional terms attached
- Tenant’s passport, visa and Emirates ID copies
- Rent cheques and security deposit received
- Contract registered in Ejari
- Inventory and photographs at check-in
During the tenancy
- Maintenance arrangements agreed and recorded
- Diary date: 90 days before expiry, last day to propose new terms
- Check the Rental Index before proposing an increase
Ending or renewing
- Renewal terms agreed, or 12 months’ notice served by notary public or registered post where the law allows
- Check-out inspection against the inventory
- Deposit returned, or the balance with an explanation
- Ejari cancelled or renewed
Chapter 4
Renewals and increases
At a glance
Either side must give at least 90 days’ notice before expiry to change the terms. Any increase is capped by Decree No. 43 of 2013.
If you want to change the rent or any other term, you must tell the tenant at least 90 days before the contract ends, unless the contract says otherwise. If the tenant stays on without objection, the contract renews on the same terms for the original period or one year, whichever is shorter.
| Current rent compared with the Rental Index average | Maximum increase |
|---|---|
| Up to 10% below | No increase |
| 11% to 20% below | 5% |
| 21% to 30% below | 10% |
| 31% to 40% below | 15% |
| More than 40% below | 20% |
The Rental Index calculator shows the permitted increase for a specific property. If landlord and tenant cannot agree, the Rental Disputes Center can set a fair rent.
Chapter 5
Ending a tenancy
At a glance
At expiry, a landlord can recover the property only for reasons set out in the law, with 12 months’ notice served through a notary public or by registered post.
When the contract ends, the law allows a landlord to seek eviction for specific reasons, including:
- selling the property;
- moving in personally, or for a first-degree relative, where no other suitable property is owned;
- demolition or reconstruction, or renovation that cannot be done with the tenant in place, supported by a Dubai Municipality report.
Notice must be given 12 months before the eviction date, through a notary public or by registered post. A property recovered for the owner’s own use cannot normally be let to someone else for two years if residential.
During the contract, eviction is possible for specific breaches, such as unpaid rent: the tenant then has 30 days after notice to pay. Disputes go to the Rental Disputes Center, where filing costs 3.5% of the annual rent, with a minimum of AED 500 and a maximum of AED 20,000.
Planning to sell a tenanted property? See how we sell for owners.
Chapter 6
Holiday homes
At a glance
Letting by the night requires a holiday home permit from the Department of Economy and Tourism, held by the owner or by a licensed operator.
Dubai’s Department of Economy and Tourism regulates holiday homes. The owner can apply for the permit directly, or appoint a licensed holiday home operator to run the property.
A holiday home can earn more than an annual tenancy in the right building and season, but income varies through the year and the work is constant: pricing, cleaning, guest service, reviews and compliance. Your building’s rules and the developer or owners’ association may also need to be checked before you start.
Chapter 7
Costs, tax and VAT
At a glance
There is no personal income tax on rent in the UAE. An individual’s rental income is outside Corporate Tax unless the letting needs a licence, such as a holiday home permit.
Running costs
Owners in jointly owned buildings pay an annual service charge approved by RERA. The approved rate for a building can be checked in the DLD Service Charge Index. Budget too for maintenance, any void months and agency or management fees.
Corporate Tax
The Federal Tax Authority’s guidance treats rent earned by an individual, where no licence is needed, as real estate investment outside Corporate Tax, whatever the amount. Registering a tenancy in Ejari does not change that. Where the letting requires a licence, such as a holiday home permit, the income counts as a business, and Corporate Tax applies once turnover exceeds AED 1 million in a calendar year.
VAT
Long-term residential rent is exempt from VAT. Commercial leases and some short-term or serviced lettings are treated differently, so take advice before you choose.
Tax at home may still apply if you are resident elsewhere. We work alongside your tax advisers rather than replacing them.
Chapter 8
Letting from abroad
At a glance
Everything in this guide can be handled for you, from finding the tenant to renewals, maintenance and accounts.
Many owners live outside the UAE. A registered property manager can register Ejari contracts on your behalf, collect rent, arrange maintenance and keep the notice dates that matter. Choose one licensed for property management and ask for regular statements.
Our Private Office manages letting, tenants and accounts for owners wherever they live.
Chapter 9
Questions landlords ask
How much can I raise the rent at renewal?
It depends on how far the current rent is below the Rental Index average, from no increase up to 20%. The Rental Index calculator shows the figure for your property.
When must I tell the tenant about a change?
At least 90 days before the contract ends, unless the contract says otherwise.
Can I ask the tenant to leave because I want to sell?
Yes, at the end of the contract, with 12 months’ notice served through a notary public or by registered post.
Do I pay tax on rental income?
There is no personal income tax in the UAE. An individual’s rent is outside Corporate Tax unless the letting needs a licence, such as a holiday home permit, and turnover exceeds AED 1 million. Tax may apply where you are resident.
Who registers the contract in Ejari?
Normally the landlord or the property manager. If the landlord does not, the tenant can.
Can I let my apartment short term?
Yes, with a holiday home permit from the Department of Economy and Tourism, held by you or by a licensed operator, subject to your building’s rules.
Your next step
Speak with a Redwood advisor
Tell us about your property. We will come back with a rent estimate, the right strategy and a clear plan, wherever you are.
Book a consultationSources: Dubai Land Department, Tenancy Guide, Decree No. 43 of 2013, Rental Index, Smart Rental Index, Ejari and Service Charge Index; Government of Dubai, Law No. 33 of 2008; Rental Disputes Center, filing fees; Federal Tax Authority, Real Estate Investment for Natural Persons and Real Estate VAT Guide; Department of Economy and Tourism, holiday home permits. Checked 29 October 2026. This guide is general information, not legal, tax or financial advice.
