Dubai Rental Income Breakdown: Taxes, Fees & What Landlords Keep
Before the community data, here is the cost structure applied consistently across every area in this guide.
- Service Charges : RERA publishes service charge rates annually for registered communities. These are levied per square foot of the unit and cover building maintenance, security, common area utilities, and facilities management.
- They are non-negotiable, they increase over time, and they are the single largest recurring cost for a Dubai landlord. Rates vary enormously from AED 3 per square foot in basic JVC buildings to AED 35 per square foot in premium Downtown towers. On a 750 square foot apartment, that is the difference between AED 2,250 and AED 26,250 annually.
- Agency and Management Fees : If you lease the property yourself through a RERA-registered agent, the standard fee is 5% of annual rent for a one-year lease. If you use a property management company to handle tenant sourcing, renewals, maintenance coordination, and rent collection, the fee rises to 7% to 10% of annual rent. This guide uses 7% as the baseline the realistic cost for an investor who does not live in Dubai and cannot self-manage.
- Maintenance and Repairs : RERA's standard tenancy framework places most internal maintenance responsibility on the landlord. Industry practice across Dubai's rental market suggests budgeting 0.5% to 1% of property value annually for maintenance. This guide uses 0.75% of purchase price as the maintenance reserve.
- Vacancy Allowance : No property is tenanted 52 weeks a year indefinitely. Dubai's average vacancy rate across residential communities runs between 8% and 14% depending on location and unit type. This guide applies a 10% vacancy buffer equivalent to approximately five weeks of lost rent annually to every calculation.
- What this guide does not deduct : Mortgage financing costs, because these vary by buyer profile. Personal income tax, because the UAE levies none on rental income for individuals. DLD transfer fees and agent commissions on purchase, because these are one-time acquisition costs rather than recurring yield reducers.






