The Hidden Costs of Long-Term Rentals in Dubai
Renting out a property in Dubai on a long-term lease may seem like the safer, more passive route—but many landlords overlook the hidden costs and risks tied to long-term tenancies. These issues can significantly affect your return on investment and limit your control over your asset.
Here’s what you really need to know before committing to a long-term rental in Dubai.
1. Limited Property Access
Under UAE tenancy laws, landlords cannot access the property without giving the tenant proper notice and obtaining their consent—even in emergencies. This makes regular maintenance and inspection difficult, especially if issues go unreported by the tenant.
2. Poor Property Condition on Return
After 1–2 years, many properties are returned with visible wear and tear, outdated fixtures, and sometimes minor damage. Landlords are responsible for deep cleaning, repairs, and replacing worn appliances—costs that eat into your income quickly.
3. Legal Costs and Disputes
Evicting a tenant or addressing unpaid rent isn’t as simple as it sounds. Legal action is slow, and the law typically favors tenant rights. You may face:
- Legal fees
- Delayed eviction timelines
- Lost rental income during the process
Even small disputes can lead to prolonged headaches and hidden expenses.
4. Lost Income Between Tenancies
Vacant periods between tenants are often not factored into return projections, but they are very real. You may lose one or more months of income between renewals, especially during low-demand seasons.
5. Limited Flexibility and Control
During an active lease, you cannot sell, occupy, or repurpose the unit. You’re locked in until the lease ends—even if you want to convert to short-term rental or sell in a rising market.
6. RERA Rental Cap Regulations
Rent increases are tightly regulated by Dubai’s RERA Rental Index, regardless of rising market demand. Even if similar units are renting for more, you may be stuck at a capped amount—limiting your income growth year after year.
Final Thoughts: Is Long-Term Worth It?
While long-term rentals offer stable income, they also come with hidden costs, strict legal protections for tenants, and limited flexibility for owners. It’s essential to factor in lost income, maintenance, legal exposure, and market limitations before choosing this path.
For some landlords, short-term rentals may offer better control, higher flexibility, and the ability to use the property themselves. But both models carry risk—it all depends on your investment goals, risk tolerance, and how hands-on you want to be.
