Starting a Property Management Company in Dubai - License Cost & Profit

Have you ever thought about building a business that pays you every month - without owning a single property?

That’s exactly what the property management business offers in Dubai. And in 2025, this model is not just relevant - it’s booming.

In a city where property investments are rising fast, especially from overseas buyers, someone needs to take care of those properties. Someone needs to handle tenants, collect rent, respond to maintenance issues, and ensure the property stays compliant with local laws.

That “someone” is a certified property management company.

You must be surprised to know that one big reason foreign investment in Dubai real estate keeps rising is the availability of residency-by-investment programs. With options like the 10-year Golden Visa for property investors who invest AED 2 million or more, Dubai has become a magnet for global buyers looking for both returns and residency. And what happens when more investors buy homes here? They need someone on the ground to manage, maintain, and protect those assets.

Here’s the exciting part - many certified property managers in Dubai handle over 200 properties with a small team.

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With annual rental yields averaging AED 120,000 per property, and standard commission rates of 7%, that’s AED 8,400 per property, per year - just from management fees.

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Multiply that by 100 properties and you’re looking at AED 840,000+ annually, even before adding tenant-side commissions or extra services.

Isn’t that the kind of income that builds freedom?

So, if you’re exploring new business ideas in Dubai or want to build something steady, legal, and scalable - this guide is for you. Let’s walk through exactly how to start a property management company in Dubai in 2025.

Why Property Management Is in High Demand - Especially from Foreign Investors

Dubai's real estate is hot. No surprise there. But here’s the detail most people miss - over 70% of property buyers in Dubai are foreign nationals, and most of them don’t live in the UAE full-time.

What does that mean?

It means they need someone reliable to:

a. Screen and manage tenants
b. Handle maintenance and inspections
c. Ensure timely rent collection
d. Deal with legal and contract formalities

In short - they need a property manager. And if you're licensed and trusted? You're in demand.

Property Management Brings Higher ROI for Owners

You must be surprised to know that professionally managed properties generate up to 6% more income annually compared to owner-managed ones.

Why? Because:

a. You fill vacancies faster
b. You attract better, long-term tenants
c. You maintain the property better (and cheaper)
d. You handle renewals, payments, and legalities on time

So, for a property worth AED 1.2 million, rented at AED 120,000/year - your management can help boost the owner’s income by AED 7,000–10,000 more annually.

Isn’t that an irresistible offer to pitch?

How Much Do Property Management Companies Charge in Dubai?

Most companies charge between 7% to 10% annually of the rent collected.

Let’s say you manage a villa rented at AED 120,000/year.

Your 7% cut = AED 8,400 per year

You may also charge extra for tenant finding, maintenance supervision, short-term stays (like Airbnb), and check-in/check-out services.

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Here’s the kicker - in short-term rentals like Airbnb, property managers can earn 15–20% commission, especially for high-traffic tourist areas like Downtown Dubai or JBR.

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Business Models: Long-Term vs. Short-Term Property Management

1. Long-Term Rentals (Yearly Tenancy)

You sign a 12-month management contract with the owner.
You find the tenant, do background checks, draft the lease, collect cheques, and supervise property handover.

Ongoing services include:

a. Monthly inspections
b. Utility payments if needed
c. Cheque deposit on time
d. Handling disputes or delayed payments

2. Short-Term Rentals (Airbnb, Holiday Homes)

This model is more hands-on - but also more profitable.

Services include:

a. Listing creation and dynamic pricing
b. Booking management
c. Guest check-in/check-out
d. Cleaning and linen coordination
e. Property photography

You usually charge 15%–25% of revenue and may even offer guaranteed income to owners.

How Property Management Businesses Actually Work (Real Workflow)

Let’s break it down simply:

1. You sign a contract with the owner to manage the property.

2. You prepare legal documents - management agreement, tenancy contract, landlord NOC, etc.

3. You market the unit - on Bayut, Dubizzle, Airbnb, Booking.com, etc.

4. You screen tenants - background, job verification, visa status.

5. You draft the lease, collect cheques, register Ejari (for long-term).

6. You manage payments, issues, renewals, disputes.

7. You coordinate maintenance with third-party vendors or your own in-house team.

Each step can be automated or outsourced as you grow.

What Are the Legal Steps to Start This Company in Dubai?

Starting this business is straightforward - if you know the steps. If you're completely new to business setup in Dubai and want to understand the full process step-by-step, we’ve got you covered. We’ve written a detailed article on how to open a business in Dubai, where we explain everything - from choosing the right license to getting approvals and opening your bank account.

Here are the basic steps to register a property management company in Dubai:-

1. Choose License Type and Legal Form

For property management, you need a Professional License issued by the Dubai Economic Department (DED).

Activity Code: 6820001
Activity Name: Property Management Services

You can set this up as a sole establishment, civil company, or an LLC.

Here’s the official activity description.

This license covers companies that manage commercial, residential, and industrial buildings on behalf of owners. It includes tenant management, maintenance coordination, rent collection, and ensuring all contractual and legal compliance.

Note: You are not allowed to do brokerage or sell properties — only manage them.

2. Initial Approvals

You need to:

Reserve a trade name
Apply for initial approval from DED
Draft the Memorandum of Association (if forming an LLC)

3. Office Requirement

You need a physical office (or in some Free Zones, a Flexi-desk setup).
COFTT can help you find budget-friendly business centers.

4. Final License & Approvals

Submit all documents (passport, MoA, tenancy contract)
Pay license fee (Approx AED 12,000–15,000 annually)

Profit Margin in Property Management:

Let’s say you manage 50 properties, each renting at AED 100,000/year.

7% commission = AED 7,000 per property

50 x AED 7,000 = AED 350,000 annual revenue

Add short-term management services or add-on charges = even more. As you grow and manage 100–200 properties with a small team, you’re building a high-margin, low-overhead business.

Why Foreign Investors Prefer Certified Property Managers

Many foreign investors don’t live in the UAE full-time. They need:

a. A reliable partner on the ground
b. Compliance with Dubai’s strict tenancy laws
c. A company that protects their asset and grows their income

Certified property managers provide exactly that.

The best part? Demand is always rising. Dubai is expanding, and new buildings are being delivered monthly - all of them need management.

Let’s be honest - real estate will never go out of fashion. And property management? It’s the backbone of real estate profitability.

a. You don’t need to buy properties.
b. You don’t need to raise millions.
c. You just need the license, the systems, and a reliable structure.

And that’s where COFTT comes in. Let’s start your property management company in Dubai - with COFTT by your side. Contact us Today!