TRW & Co · Real Estate, Construction & Energy
Property Management in the UAE
Property management in the UAE is governed mainly by emirate law: Dubai's 2019 jointly owned property law, tenancy rules and RERA approvals, and Abu Dhabi's reformed framework under ADREC. Owners, developers and managers who follow the prescribed process for budgets, service charges, notices and permits avoid most disputes; those who improvise usually pay for it.
Key pointIn Dubai, no service charge may be collected without RERA approval, but once approved, unpaid charges become a charge on the unit that blocks its sale and can be enforced by an execution judge, up to public auction.
At a glance
Owners committees in Dubai
A committee forms once 10% of units are registered to owners; it supervises the manager and reviews budgets but does not run the building.
RERA-approved service charges
Dubai service charges need RERA approval and an audited budget, and must be held in a segregated account that creditors cannot attach.
Charges secured on units
Unpaid service charges create a charge over the unit that blocks its sale, enforceable through the Rental Disputes Centre execution judge.
Strict eviction notices
Eviction at lease expiry in Dubai needs a statutory ground and twelve months' notice served by notary public or registered mail.
Abu Dhabi 2025 decisions
Abu Dhabi issued 2025 decisions on jointly owned property rights and standard bylaws for owners' committees under its amended real estate law.
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What property management in the UAE covers
Property management in the UAE covers the legal side of running buildings and portfolios after they are built: the owners' committees and management companies that run jointly owned towers and communities, service charge budgets and collection, leasing and rent collection for landlords, holiday home operation, facilities management contracts and the disputes that follow when any of these break down. It is regulated mainly at emirate level, with Dubai and Abu Dhabi each operating their own framework.
The audience is broad. Developers remain responsible for buildings until owners' structures take over, institutional landlords need compliant leasing and collection processes, overseas investors rely on agents to manage units they rarely visit, and management companies need to stay within their regulatory approvals. Each group faces different obligations, but all of them depend on the same registers, regulators and dispute forums.
The rules carry real money. Service charges fund maintenance and reserve funds for buildings worth billions of dirhams, rent caps limit increases on renewal, and an eviction served in the wrong form can delay possession for a year. A management decision that looks routine can have legal consequences for every owner in a building.
The legal framework for property management in the UAE
There is no single federal property management statute. The core rules are emirate laws on jointly owned property and on landlord and tenant relations, supported by regulator decisions, standard documents and registration systems. Federal law supplies the general contract rules, VAT, corporate tax and AML obligations.
| Topic | Dubai | Abu Dhabi |
|---|---|---|
| Jointly owned buildings and communities | Law No. 6 of 2019 on jointly owned real property, administered by RERA | Law No. 3 of 2015 as amended in 2025, with 2025 decisions on jointly owned property and standard bylaws for owners' committees |
| Landlord and tenant | Law No. 26 of 2007 as amended by Law No. 33 of 2008; Decree No. 43 of 2013 on rent increases | Abu Dhabi's tenancy law (Law No. 20 of 2006, as amended) and related decisions |
| Lease registration | Ejari | Tawtheeq, now integrated with the DARI platform |
| Service charges | RERA approval and collection through the Mollak system | Owners' committee and management arrangements under ADREC oversight |
| Disputes | Rental Disputes Centre | Abu Dhabi rental disputes forum within the judicial system |
Since 1 June 2026 the new federal Civil Transactions Law has supplied the general law of contract behind management agreements, facilities contracts and leases. Emirate laws continue to prevail on matters they regulate specifically, but gaps are now filled by the new law rather than the 1985 Civil Code.
Jointly owned property in Dubai: how the 2019 law works
Dubai's Law No. 6 of 2019 replaced the 2007 strata law and is the most detailed regime for property management in the UAE. It covers residential and commercial towers, master communities and hotel projects, and it gives RERA a supervisory role over almost every financial decision.
Owners' committees
The law uses an owners' committee rather than a general assembly. A committee is formed once at least 10% of a project's units are registered in owners' names, and for major projects RERA appoints up to nine members. Members must meet residency and good-standing criteria, including being up to date with charges. The committee meets regularly, supervises the management entity, reviews budgets, handles complaints and reports defects. It does not manage the building itself.
Management companies
Day-to-day management is carried out by the developer or by a management company recognised by RERA, under an agreement RERA approves. Master developers must outsource management of common facilities under an approved agreement. The management entity posts a bank guarantee in favour of DLD and can be replaced if it performs poorly. For management companies, regulatory recognition and an approved contract are the foundation of their right to act and to collect.
Service charges and reserve funds
Owners pay an annual share of service charges in proportion to their unit's area, and developers pay for unsold units. No service charge may be collected without RERA approval, and the budget must be approved by an audit firm recognised by RERA. Charges must be paid into a separate bank account that creditors cannot attach, and a reserve fund is held for emergencies and cannot be used without RERA approval except in critical cases. Owners cannot withhold charges because they are dissatisfied with services, and a management entity cannot block an owner's use of the unit to force payment.
Enforcing unpaid charges
Unpaid service charges create a charge over the unit, which cannot be sold until they are paid. After a written notice approved by RERA, the claim becomes enforceable by an execution judge at the Rental Disputes Centre, which can ultimately order a public auction. A landlord stays liable for service charges even if the lease passes the cost to a tenant who defaults.
Master communities and hotel projects
Large developments add a second layer. The master developer issues a master community declaration, approved by RERA, before units are sold, and it binds every sub-development and owner. The master developer manages the common facilities, such as roads, landscaping and community amenities, and may levy usage charges on owners and sub-developers. Amendments that affect purchasers' rights need RERA approval. Hotel projects follow a different model: an owners' committee exists only if the hotel operator asks for one and has no management role, so investors in serviced or hotel units rely mainly on their operating agreements.
Under Dubai's 2019 law, developers remain liable for structural defects for ten years from the completion certificate and for installation defects for one year from handover, and contrary agreements are void. Owners' committees should log defects formally and early, because those periods run regardless of how long handover snagging takes.
Abu Dhabi and the other emirates
Abu Dhabi's 2025 amendments to its real estate sector law were followed by decisions dealing specifically with ownership rights in jointly owned properties and common facilities, and with standard bylaws for owners' committees. The direction is similar to Dubai's: clearer owner participation, regulated budgets and a supervisory role for the Abu Dhabi Real Estate Centre. Transactions and lease registrations are increasingly run through DARI.
Sharjah, Ras Al Khaimah, Ajman and the other emirates have their own registration and tenancy rules, their own lease registration practices and their own rental dispute committees, and their approach to jointly owned buildings is generally less detailed than Dubai's. Managers with portfolios across several emirates should not assume Dubai documents or processes will work elsewhere, particularly for rent increases, notices and dispute forums.
Good property management in the UAE is mostly about process: the right notice, served the right way, at the right time, with the regulator's approval where the law requires it.
Leasing, rent increases and evictions
Leasing is where most landlords, agents and tenants meet property management law. In Dubai, the tenancy law and Decree No. 43 of 2013 set the rules. Rent increases on renewal are capped by reference to how far the current rent is below the average for similar units, as measured for residential property by DLD's Smart Rental Index. A party wanting to change terms on renewal must generally give at least 90 days' notice before expiry, unless the lease provides otherwise.
Evictions are tightly regulated. During the term, a landlord can evict only on statutory grounds such as non-payment after notice, unauthorised subletting or illegal use. At expiry, eviction is allowed only on limited grounds, including the landlord's own use, sale, or redevelopment and major renovation, and the landlord must give at least twelve months' notice served through a notary public or by registered mail. Informal emails or agent messages do not satisfy the law.
Leases should be registered on Ejari in Dubai or the equivalent system in Abu Dhabi. Registration is needed for practical matters such as utilities and residence visas, and it is evidence in any dispute. Commercial leases add further issues, from fit-out and service charge pass-through to assignment and break rights; see commercial leasing in the UAE.
Resolving rental disputes
In Dubai, the Rental Disputes Centre has exclusive jurisdiction over landlord and tenant disputes, including most free zone properties, and over disputes under the jointly owned property law. Claims start with an amicable settlement stage, and a settlement approved by the supervising judge can be enforced like a judgment. Unresolved cases go to the first-instance tribunal, with appeal available only for higher-value claims and certain categories such as eviction. Documents must be in Arabic or accompanied by legal translations. For managers, the most useful preparation is a complete file: registered lease, payment history, notices with proof of service and inspection records.
Taking over management of a building or portfolio
- Confirm authority. Check the management entity's RERA recognition or equivalent approval, its approved management agreement and any bank guarantee required.
- Collect the records. Obtain title and jointly owned property documents, building management regulations, approved budgets, audited accounts, reserve fund statements and owners' committee minutes.
- Reconcile service charges. Load owner balances into the collection system, identify arrears and confirm which charges have regulatory approval.
- Review leases. Check Ejari or equivalent registration, rent levels against the index, renewal dates and any notices already served.
- Audit contracts. Review facilities, security, cleaning and lift maintenance contracts for term, termination rights and compliance with procurement rules in the management agreement.
- Log defects and warranties. Record outstanding defects against developer liability periods and contractor warranties, and notify formally.
- Set compliance routines. Diarise budget approvals, audits, insurance renewals, notice deadlines and data protection obligations for owner and tenant data.
Documents a manager or owner should hold
- Title deeds or interim registration certificates, the master community declaration and building management regulations.
- The approved management agreement and evidence of the manager's regulatory recognition.
- Annual budgets, audit approvals, bank statements for the service charge and reserve accounts.
- Owners' committee constitution documents and minutes.
- Registered leases, renewal and rent increase notices, and proof of service.
- Facilities management, insurance and maintenance contracts, with warranties.
- Holiday home permits and guest registration records where units are let short-term.
- Data protection notices and processing records for owner and tenant data.
Risks and common mistakes
Collecting charges that were never approved
In Dubai, service charges collected without RERA approval are open to challenge, and owners may refuse to pay or demand refunds. The same applies to charges outside the approved budget or allocated in a way that does not follow unit areas. Managers should never invoice ahead of approval except where a temporary budget has been authorised, and they should keep a clear audit trail linking each charge to the approved budget line.
Serving eviction or increase notices informally
Landlords and agents frequently send notices by email or messaging apps. For eviction at expiry the law requires notarised notice or registered mail with twelve months' lead time, and rent increases need notice before the renewal deadline. A defective notice usually means starting again and losing a year. Use the prescribed form, keep proof of service and diarise deadlines well before they arrive.
Mixing service charge money with operating funds
The Dubai law requires service charges to sit in a separate account that creditors cannot attach, with a reserve fund held separately again. Managers who use service charge balances for their own cash flow, or who transfer reserves without approval, face regulatory action, replacement and potential claims from owners. Reconcile accounts monthly and report balances transparently to the owners' committee.
Running holiday homes without a permit
Short-term letting of residential units is a regulated activity. In Dubai, holiday homes need a permit from the Department of Economy and Tourism, and guest registration and building rules must be followed. Abu Dhabi has its own licensing regime for holiday homes. Operators and owners who let units informally risk fines, removal of listings and disputes with owners' committees over building use.
Missing developer defect deadlines
Defect liability periods run from completion or handover, not from when owners organise themselves. Committees and managers that wait for a full survey before notifying developers can find installation defects time-barred. Notify promptly, even provisionally, and keep photographs, expert reports and correspondence. Where defects are serious, consider whether a construction dispute strategy is needed alongside the management response.
Overseas owners and cross-border issues
Many units are owned by investors who live abroad, which makes property management in the UAE a cross-border service. Owners in Bangladesh, India and the UK typically appoint an agent under a power of attorney, which must be notarised and legalised or attested before UAE authorities will accept it. The scope of the power should be specific: signing leases, collecting rent, paying service charges and appointing contractors, without wider powers to sell or mortgage unless intended.
Rental income may be taxed in the owner's home country even where the UAE does not tax it, and remittance rules in countries such as Bangladesh and India may affect how income is repatriated. Owners holding through companies should check corporate tax and VAT: residential leases are generally VAT-exempt while commercial leases are standard-rated. Chinese and Saudi institutional owners often hold portfolios through UAE or DIFC entities, which brings governance and reporting obligations. See real estate acquisition and VAT in the UAE.
Owner and tenant data handled by managers is personal data. The federal Personal Data Protection Law applies onshore, and transfers of data to owners or service providers abroad need a lawful basis. See federal personal data protection.
How TRW & Co helps with property management in the UAE
We advise owners, developers, management companies and investors on the legal framework for property management in the UAE. Where representation before the Rental Disputes Centre, UAE onshore courts or the DIFC/ADGM Courts is required, we work alongside locally licensed advocates and registered practitioners.
Management agreements
We draft and review management, facilities and leasing agency agreements so that they fit regulatory approval requirements. Each one sets clear service levels and termination rights.
Owners' committee support
We advise committees on their powers, budget review, manager oversight and defect claims. We also help them engage effectively with RERA or ADREC.
Service charge recovery
We structure collection processes and notices, and coordinate enforcement through the Rental Disputes Centre where owners default.
Leasing compliance
We prepare lease templates, renewal and increase notices and eviction strategies that follow Dubai and Abu Dhabi rules. We cover both residential and commercial portfolios.
Holiday home operations
We advise operators and owners on permits, building rules, guest data and agreements with owners' committees for short-term letting.
Overseas owner services
We prepare powers of attorney and agency mandates for owners abroad and coordinate tax and succession advice with our offices in Dhaka, Singapore and London.
See also real estate regulation in the UAE, real estate disputes and all TRW & Co practices.
Checklist for decision-makers
- Confirm the manager's regulatory recognition and an approved management agreement.
- Collect only approved service charges and keep them in segregated accounts.
- Protect the reserve fund and document any use of it.
- Register every lease and diarise renewal and notice deadlines.
- Serve eviction and increase notices in the prescribed form, with proof of service.
- Log defects formally against developer and contractor liability periods.
- Hold permits for any holiday home or short-term letting activity.
- Check VAT, corporate tax and data protection obligations for the holding structure.
- Review templates against the Civil Transactions Law in force from 1 June 2026.
To discuss a building, portfolio or dispute, contact TRW & Co or email info@trw.co. Official Dubai texts are available on the Dubai Legislation Portal and registration services through the Dubai Land Department.
Frequently asked questions
01Who regulates property management in Dubai?
The Real Estate Regulatory Agency (RERA), part of the Dubai Land Department, regulates jointly owned property under Law No. 6 of 2019. It recognises management companies, approves management agreements and service charge budgets, and appoints owners' committee members for major projects. Landlord and tenant matters fall under the Dubai tenancy law, and disputes go to the Rental Disputes Centre.
02How are service charges set and approved in Dubai?
The management entity prepares an annual budget, which must be approved by a RERA-recognised audit firm and by RERA before charges are collected. Each owner pays a share based on the area of their unit, and developers pay for unsold units. Charges are collected through the DLD's Mollak system into a segregated account, and a reserve fund is maintained for emergencies.
03What happens if an owner does not pay service charges?
Unpaid charges create a charge on the unit, which cannot be sold until they are paid. After a written notice approved by RERA, the management entity can enforce the debt through the execution judge at the Rental Disputes Centre, which can ultimately order a public auction. The management entity cannot cut off an owner's use of the unit to force payment.
04How much can a Dubai landlord increase rent on renewal?
Increases are capped under Decree No. 43 of 2013 according to how far the current rent is below the average rent for similar units. For residential property, the average is assessed using DLD's Smart Rental Index. If the rent is close to the average, no increase is allowed. Notice of an increase must generally be given at least 90 days before expiry unless the lease says otherwise.
05Can a landlord evict a tenant at the end of the lease in Dubai?
Only on limited statutory grounds, such as the landlord's or a first-degree relative's own use, sale of the property, or demolition and major renovation. The landlord must give at least twelve months' notice stating the ground, served through a notary public or by registered mail. After a personal-use eviction, restrictions apply on re-letting the property for a period.
06Do I need a licence to let my apartment as a holiday home?
Yes. Short-term letting is regulated. In Dubai, a holiday home permit is issued by the Department of Economy and Tourism, and units must meet standards and comply with building rules and guest registration requirements. Abu Dhabi has its own licensing regime. Letting informally through online platforms without a permit risks fines and disputes with the owners' committee or management company.
07Does the new Civil Transactions Law affect leases and management agreements?
Yes. Federal Decree-Law No. 25 of 2025 came into force on 1 June 2026 and replaced the 1985 Civil Code as the general law of contract. Emirate tenancy and jointly owned property laws still govern their specific subjects, but general questions about contract formation, performance and some limitation periods now follow the new law. Templates should be reviewed.
Sources and official materials
- Dubai Law No. 6 of 2019 on Jointly Owned Real Property — Owners' committees, service charges and management companies
- Mollak (Dubai Land Department) — Service charge management system
- Rental Disputes Centre — Dubai landlord, tenant and jointly owned property disputes
- Dubai Land Department — RERA, Ejari and registration services
- Abu Dhabi Real Estate Centre — Abu Dhabi real estate regulator
- DARI — Abu Dhabi real estate and lease platform
General information only, current as at 27 October 2026. It is not legal advice and does not create a lawyer–client relationship. UAE law differs between the onshore jurisdiction, the DIFC, ADGM and the free zones, and changes frequently; check current official sources and take advice on the facts of your matter.
