Service charges in Dubai, explained for owners and buyers
Owning and letting
What the annual charge pays for, who sets it, where to look it up before you buy, and what the law does when an owner stops paying.
Letting and managing your Dubai property
Tenants found and vetted, rent collected, maintenance handled and renewals kept within the law, with one statement a year.
Our management fee is a share of the annual rent, agreed in writing before we market the home.
In short
- Enesco lets and manages homes for owners in Dubai: finding and vetting tenants, Ejari registration, rent collection, maintenance, renewals within the bands of Decree No. 43 of 2013, inspections and an annual statement.
- Our fee is a share of the annual rent, agreed in writing before we market the home.
- Rental income from property held in your own name is not subject to UAE corporate tax when the activity does not need a licence, under Cabinet Decision No. 49 of 2023.
Onboarding.
We take the title deed, your identification, the keys and an inventory, confirm the service charges are paid and agree the asking rent against the Smart Rental Index and recent lets in the building.
Marketing.
The listing goes live under a Trakheesi permit, with our ORN and the adviser's BRN on every advert, on the portals and on this site.
Tenant vetting.
We check each applicant's identification, employment and funds, and bring you a recommendation with the proposed rent, cheques and deposit.
Contract and Ejari.
We draw up the tenancy contract, collect the cheques and the deposit, and register the contract with RERA through Ejari. Online registration costs AED 177.75.
Rent and maintenance.
Cheques are banked on their dates and the rent is paid to you. Maintenance requests come to us, are priced, approved by you above an agreed limit and carried out.
Inspections and renewals.
The home is inspected during the term with a written report. Before expiry we give any notice the law requires and propose the renewal rent within the Decree No. 43 of 2013 bands.
Annual statement.
Once a year you receive a statement of rent received, our fee, maintenance and service charges, ready for your records or your accountant.
How far the rent can rise at renewal
Decree No. 43 of 2013 ties any increase to how far the current rent sits below the Smart Rental Index average for similar homes:
| Current rent against the index average | Largest increase allowed |
|---|---|
| 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% |
Changing the terms or not renewing needs at least 90 days' notice before the contract ends, unless the contract says otherwise. Taking the home back at expiry to sell it, or for you or a first-degree relative to live in, needs at least 12 months' notice through a notary public or by registered mail. We serve both on your instruction.
Short-term lets and shared housing
A home let for short stays needs a holiday home permit from Dubai's Department of Economy and Tourism, and individual owners can register their own homes. Law No. 4 of 2026 requires a separate permit before any unit is used as shared housing.
What stays with the owner
- Service charges, which Dubai Law No. 6 of 2019 defines as charges collected from owners; RERA must approve them, and you can check the approved figure on DLD's Service Charge Index
- Unpaid service charges are a lien on the home, and after a RERA-approved notice the owner has 30 days to pay before the claim is enforced
- Repairs the tenancy contract leaves with the landlord, approved by you above an agreed limit
Tax on rental income
- The UAE does not levy income tax on individuals
- Under Cabinet Decision No. 49 of 2023, a person's income from property held in their own name is not subject to corporate tax, whatever the amount, as long as the activity is not carried out, and is not required to be carried out, under a licence
- Residential leases are generally exempt from VAT; commercial property is charged at 5%
Your country of residence may tax income from Dubai property. Enesco does not give tax advice; check with an adviser there.
What it costs
Our management fee is a share of the annual rent, agreed in writing before we market the home.
Questions about this service
What does property management include?
Finding and vetting the tenant, the contract and Ejari registration, banking the cheques and paying you the rent, maintenance, inspections with written reports, renewal notices and rent proposals within the law, and an annual statement.
How much can I raise the rent at renewal?
Only when the rent is more than 10% below the Smart Rental Index average for similar homes: by 5% if it is 11% to 20% below, 10% if 21% to 30% below, 15% if 31% to 40% below, and 20% if more than 40% below, under Decree No. 43 of 2013.
How much notice must I give a tenant?
At least 90 days before the contract ends to change the terms or not renew, unless the contract says otherwise. To take the home back to sell or move in, at least 12 months through a notary public or by registered mail.
Do I pay tax on rent in Dubai?
The UAE has no personal income tax, and under Cabinet Decision No. 49 of 2023 a person's rental income from property in their own name is outside corporate tax when no licence is required. Your home country may tax it.
Who pays the service charges, me or the tenant?
Dubai Law No. 6 of 2019 defines service charges as charges collected from owners. Budget for them each year and take them off the rent before judging the return.
Can I let my home for short stays?
With a holiday home permit from Dubai's Department of Economy and Tourism, which individual owners can obtain for their own homes. Check its current requirements and fees before you list.
Guides that go with this service
How to rent out your Dubai property
Owning and letting
The landlord's side of Dubai tenancy law: registering the contract, what rent increase the index allows, the two notice rules, holiday lets and tax.
Renting a home in Dubai: what every tenant should know
Owning and letting
The law behind a Dubai tenancy, what you pay up front, how much the rent can rise, the notice you are entitled to, and where to go when something goes wrong.
Investing in Dubai property: how to judge a deal
Costs and mortgages
A method, not a forecast: work out the yield that is left after costs, read the price data, weigh off-plan against ready, and understand the tax and visa rules that apply.
Other services
A buyer's broker who shortlists, checks every advert, negotiates the price and stays with you to the title deed.
A valuation from real sales data, a permitted listing, qualified buyers and a transfer handled from the first viewing to the trustee office.
A tenant's adviser who shortlists, checks the landlord, negotiates the terms and registers the contract on Ejari.
Landlord Asset Stewardship
Onboard Your Property for Management & Leasing
Calculate your net rental cash flow, select an authorized management service tier, and submit your property for tenant placement and lease administration.
Estimated Owner Net Yield
Gross Annual Rent:AED 95,000
Annual Asset Management (6%):- AED 5,700
Est. Annual Service Charges:- AED 14,000
Projected Net Cash to Owner
AED 75,300
Paid in scheduled quarterly installments directly to your nominated bank account.
Enesco Real Estate is licensed by RERA for Property Management. All tenancy contracts are registered directly on the Dubai Land Department Ejari system.