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Lettings and Residency
Renting out your Dubai property: long let or holiday let?
A long let in Dubai is a 12 month tenancy registered on Ejari, with rent paid up front in one to four cheques and management at 5 to 8% of rent. A holiday let is legal across Dubai with a permit, earns more in season and costs 15 to 25% of income to manage. You can switch between the two as the market changes.
Buying is half of it. What you earn depends on how the property is let and who looks after it. Every purchase can be handed to a management company, so it is fully hands off. I never recommend managing a Dubai property yourself from overseas.
The two routes compared
| Long term let | Holiday let | |
|---|---|---|
| How it works | 12 month tenancy registered on Ejari | Short stays through a licensed operator, with a holiday home permit |
| Rent | Paid up front in 1 to 4 cheques | Paid per stay |
| Income | Steady | Higher, and seasonal |
| Management fee | 5 to 8% of rent | 15 to 25% of income |
| Utilities | Paid by the tenant | Paid by you |
| Furnishing | Can be let unfurnished | Must be fully furnished |
| Your own use | Wait for the tenancy to end | Block out the dates you want |
| Best for | Low involvement | Tourist locations |
How a long let works
The manager finds and vets the tenant, and the tenancy is registered on Ejari, the government system. Rent is normally paid up front by post dated cheque, so arrears are far less common than in most markets. Rent rises follow an official index, and disputes go to Dubai's Rental Dispute Centre.
How a holiday let works
Holiday lets are legal across Dubai with a holiday home permit, and almost any freehold apartment can be run this way. A licensed operator handles the listing, guests, cleaning and maintenance. Income is higher in the winter season and lower in summer. A small number of buildings set their own restrictions, which I check before you buy.
Dubai Marina, one of the busiest holiday let locations.
What comes out of the rent
- Service charges. Typically £2 to £5 per square foot a year (AED 10 to 25), approved by RERA.
- Management. 5 to 8% of rent on a long let, 15 to 25% of income on a holiday let.
- Empty periods and maintenance. Low on a new property, but never zero.
Net yield usually runs 1.5 to 2.5 points below gross. I set this out in costs, fees and tax.
From handover to first rent
My team arranges an independent defects inspection before you accept the keys. We can then arrange furnishing, photography, the letting and ongoing management, and your managing agent can send the rent to your bank account at home. For each property I recommend, I show both sets of figures so you can see which route suits it.
How I can help
Send me your budget and what you want to achieve and I will come back with two or three featured projects that fit, each with a 5 year illustration of equity and rental income. You can see the kind of property I recommend in the featured projects, read the full picture in my free 26 page guide, send me your brief, or book a call with me.
Talk to me directly
Prefer to talk it through? Book a call with me.
Pick a time that suits you. We will go through your budget, your goals and what is available now. No cost and no obligation.
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