DXD renaissance

Your Landlord guide

Target Tenants: Dubai attracts a diverse tenant pool, from expatriates and families to tourists and business professionals. Choose your property and location based on who you want to rent to. For example, Downtown Dubai and Dubai Marina are ideal for short-term rentals to tourists, while areas like Arabian Ranches and The Springs appeal to families looking for long-term homes.
Types of Rentals: Decide whether you want to offer short-term leases (Should be fully furnished and it's ideal for tourists and business travellers) or long-term leases (Unfurnished or partially furnished , typically for expats and families)

Initial Costs: When purchasing a property for rental purposes, you’ll need to account for the cost of the property, maintenance fees. Property prices in Dubai can be high, and additional fees like registration and notary charges apply.
Ongoing Costs: In addition to mortgage payments (if applicable), landlords must cover maintenance costs, property management fees (if using an agency), and utility bills (if not covered by tenants).

Income Tax: Dubai does not impose income tax on rental income, which makes it an attractive destination for investors. However, the property owner must ensure they comply with all other local fees, such as municipal taxes on property transactions.
VAT: For properties rented out for commercial purposes, VAT at 5% may apply. Residential properties are generally exempt from VAT, but landlords should stay informed on any changes in regulations.

Ejari Registration: All tenancy contracts in Dubai must be registered with the Dubai Land Department’s Ejari system. This creates a legal record of the lease and protects both the landlord and tenant.
Tenancy Law: Dubai has clear regulations regarding landlord-tenant relationships. The Dubai Rent Law outlines the rights and responsibilities of both parties, including rent increases, eviction rules, and security deposits.
Rental Index: Rent increases are regulated by the Real Estate Regulatory Agency (RERA). In general, landlords can increase rents annually, but only by a percentage set by RERA depending on the current rent rate.

Tenant Contracts: Ensure your lease agreements are clear about the terms, payment schedule, and maintenance responsibilities. It’s advisable to work with a property management company to draft solid contracts.
Security Deposits: Typically, landlords request a security deposit (usually 5% of the annual rent) to cover damages. This must be returned within 30 days of the tenant vacating the property unless deductions are made for repairs.
Eviction Rules: If you need to evict a tenant, you must follow a formal legal process. You can only evict tenants for specific reasons and a notice period is required.

Self-management vs. Agency: You can choose to manage your property yourself or hire a property management company to handle tenant relations, maintenance, and rent collection. Agencies charge a fee, typically around 5% of the rent.
Maintenance: As a landlord, you are responsible for ensuring the property is habitable. Regular maintenance of plumbing, electrical systems, and other major fixtures is necessary to prevent disputes.