How to Set Up a Property Management Company in Dubai: License, RERA, Mollak, Cost & Fees Guide (2026)

Dubai now has more than 612,000 completed homes, over 1.2 million registered tenancy contracts, and around 2,000 jointly owned communities that all need managing, and the pipeline adds roughly 40,000 more units a year [9][10]. That is a large, recurring, and growing market for property management, one of the few real estate businesses that earns fees every single month rather than deal by deal. But here is the part almost every guide gets wrong: "property management" in Dubai is not one licence. It is at least two very different ones, and the cheaper of them skips a AED 5,000,000 bank guarantee that stops most first-timers cold [1].

Get the licence choice right and you can start lean, managing owners' associations or supervising buildings without that guarantee. Get it wrong, or try to collect rent in your own name on the light licence, and you are looking at fines up to AED 500,000 [1]. This guide walks through exactly which licence you need, the RERA and Mollak rules, the honest cost, how management fees and service charges actually work, corporate tax and VAT (including a service-charge rule that catches nearly everyone), the anti-money-laundering position for managers, and how to hire and win clients. Since 2013, our team has set up real estate and property management companies across Dubai, so these figures and traps come from real files, not brochures.

Why start a property management company in Dubai?

Property management is the recurring-revenue side of Dubai real estate. Instead of chasing one-off sales commissions, you earn a monthly or annual fee on every unit and every community you manage, which compounds as your portfolio grows. With a completed stock north of 612,000 homes, roughly 2,000 jointly owned communities, and Q1 2026 rental contracts worth AED 32.2 billion registered through Ejari, the base of manageable property is enormous and still expanding [9][10].

The reasons founders choose property management over brokerage:

• Recurring, predictable income. A managed portfolio pays every month, so revenue is far steadier than commission-only brokerage.
• A huge and growing base. Dubai's population passed 4 million in 2025 and is set to add another 175,000 to 225,000 in 2026, most of them tenants who need managed homes [9].
• Multiple revenue lines. Leasing fees, management fees, service-charge management, maintenance coordination, snagging, and holiday-home management can all sit under one company.
• 100% foreign ownership. You can own the company outright, with no Emirati partner, since the 2021 Commercial Companies Law reform [4].

Real Talk: Recurring does not mean easy. Margins on the base management fee are thin, the real money comes from doing several things well (leasing, service-charge management, maintenance), and the compliance load (RERA, Mollak, audits, client-money segregation) is heavier than brokerage. Property management rewards operators who build systems and hold client trust, not people looking for a quick flip.

Which property management licence do you actually need?

This is the decision that shapes everything, and it is the one competitors skip. Dubai splits property management into two very different regulated activities, and only one of them requires the AED 5,000,000 bank guarantee [1].

• The full activity (commonly filed under an activity name like "Leasing and Management of Other People's Property," code cited around 6820.97) is what most people mean by a property management company: you handle the whole relationship and hold the money. It carries the AED 5,000,000 bank guarantee [1].
• The supervision activity ("Real Estate Management Supervision Services," code cited around 6820014) lets you supervise and coordinate without directly leasing or holding rent in your own name, and it does not carry the guarantee. It is a genuine, lawful lighter-entry route, not a loophole [1].

Common Mistake: Registering the supervision-only licence to dodge the guarantee, then collecting rent cheques in the company's name anyway. That is practising the full activity without the full licence, and the penalties are severe. Decide honestly which model you are running before you apply. Not sure which licence fits your plan? Ask us→

Individual-unit management or owners' association management?

Beyond the licence, there are two distinct business models, and you should pick your lane before you launch because they use different clients, skills, and rules.

• Individual-unit management is the classic property management business: an owner hands you their apartment or villa, you find a tenant, register the Ejari contract, collect the rent, and handle repairs, for a percentage of the annual rent [11].
• Owners' association (OA) or community management means being the licensed Management Company for an entire jointly owned building or community under Law No. 6 of 2019: you prepare the service-charge budget, collect it through Mollak, run the annual general assembly, and maintain the common areas [1][7]. It is a bigger, higher-barrier business with its own registration and staffing rules (covered below).

Pro Tip: Most successful Dubai firms start with individual-unit management (lower barrier, faster to revenue) and add owners' association management once they have the credentialed staff and systems. Trying to launch straight into community management without the right people and Mollak setup is where new firms stall.

What licence and approvals do you need?

You need two layers: a trade licence for the company and RERA approvals for the activity and the people. A property management company is licensed by the Dubai Department of Economy and Tourism (DET) with the correct real estate management activity, then registered with the Dubai Land Department (DLD) and its Real Estate Regulatory Agency (RERA) through the Trakheesi system [1][3].

The layers, in plain terms:

• DET trade licence. A commercial licence carrying your chosen property management activity (full management or supervision). Confirm the exact activity name and code on the Invest in Dubai portal at application, because the two activities carry different obligations [1][3].
• RERA registration via Trakheesi. Property management is a separate RERA activity from brokerage. A company registered only for brokerage cannot legally do third-party property management, and the reverse is also true. The activity itself must be registered in Trakheesi [1].
• Bank guarantee of AED 5,000,000 if you register the full management activity (covered below) [1].
• RERA staff registration cards for the individuals who practise, plus, for owners' association work, a separate registration through Mollak with named credentialed roles [1].
• Owners' association registration under Law No. 6 of 2019 if you will manage jointly owned property, done through Mollak with RERA approval [7].

Common Mistake: Treating the DET licence as the finish line. Without the correct RERA activity registered in Trakheesi, and the staff cards, you cannot legally operate, whichever model you choose.

Do you and your staff need RERA certification?

Yes. The company holds the licence, but the individuals who actually practise a registered real estate activity must each be registered with RERA and hold a personal card, so a company licence alone is not enough [1]. The path mirrors the broker route but has a property management track of its own.

• The company registers the activity through Trakheesi and, for community work, through Mollak.
• Individual staff who deal with tenants, leases, or rent must complete Dubai Real Estate Institute (DREI) training and pass the RERA exam to hold a registration card. There is a dedicated Property Management Training Certificate at DREI, separate from the standard broker course, cited at around AED 2,625 for a short course [2].
• Owners' association management adds credentialed roles. To register a community management company through Mollak, RERA requires named people with documented experience: an Owners Affairs Manager, a Finance Manager, and a Facilities Management Manager, each typically needing three or more years of relevant experience. The company manager and the facilities director also need a Dubai Police good-conduct certificate addressed to RERA, and anyone acting in community security needs a licence from the Security Industry Regulatory Agency (SIRA) [1][7].

Pro Tip: The credentialed-role requirement is the real gate for community management, not the paperwork. Line up an experienced Finance Manager and Facilities Management Manager before you pursue owners' association contracts, because you cannot register on Mollak without them. Our post-setup services team handles the RERA card and Mollak staff registrations.

What is the AED 5,000,000 bank guarantee?

If you register the full "Leasing and Management of Others' Property" activity, the Dubai Land Department requires the company to lodge a bank guarantee of AED 5,000,000 [1]. It is not a fee you spend, it is a secured facility your bank issues, backed by collateral or a credit line, that protects the owner funds you will hold. It is the single biggest barrier to entry for the full activity, and it is exactly why the supervision-only route exists for firms that do not want to hold client money directly.

• Who lodges it: the licensed company, not individual managers.
• When it applies: the full third-party management activity that holds rent and owner funds. The supervision-only activity does not carry it [1].
• Scaling note: a branch office must carry the same trade name as the parent and, per the DLD, staff a minimum number of administrative employees, so branches are a real commitment, not a light expansion [1].

Based on our experience: Most first-time operators cannot post AED 5 million in collateral on day one. The practical path is to start on the supervision-only or owners' association route, or to partner with a bank on a guarantee facility, and move to the full activity once the portfolio and balance sheet support it. We size this honestly for every client before they commit. Get a clear licence-and-cost plan→

Free zone or mainland for a property management company?

For managing Dubai property, mainland is the standard route. A free zone licence on its own cannot manage Dubai mainland property, because the RERA registration, Mollak access, and service-charge rules are mainland regulatory functions that a free zone entity cannot hold directly [1][5]. Some free zones market a real estate route where you form the company in the free zone and then complete the RERA certification layer separately, but the RERA step is unavoidable either way.

Real Talk: If a setup agent pitches a cheap free zone "property management" licence for Dubai buildings, ask them in writing how you will get RERA registration, Mollak access, and staff cards on it. For most generic free zones you will not. Compare the routes on our mainland company setup and free zone company setup pages, or read our free zone vs mainland vs offshore guide.

Can a foreigner own 100% of a property management company?

Yes. A foreign national can own 100% of a mainland property management company in Dubai, with no Emirati partner and no local service agent, since the Commercial Companies Law reform (Federal Decree-Law No. 32 of 2021, building on No. 26 of 2020) [4]. Real estate services, including property and community management activities, follow the same liberalised treatment that removed the old 51% national-shareholder requirement.

The reform was economy-wide and applied activity by activity, so older guides still mention a local partner. For property management on the Dubai mainland today, you own and control the company outright.

How much does it cost to set up?

Budget realistically for AED 60,000 to 150,000 in the first year for a compliant, staffed property management company, before the AED 5,000,000 bank guarantee if you take the full management activity [1][4]. A lean, single-founder supervision or individual-unit setup can come in around AED 40,000 to 60,000; a fully staffed office with several RERA-certified employees pushes past AED 150,000.

Here is the itemised picture (2026 figures, indicative because the DLD does not publish one consolidated schedule):

Quick Math: A supervision or individual-unit setup with one certified manager and a modest office lands around AED 40,000 to 70,000 all in for year one. The full third-party management activity adds the AED 5 million guarantee facility on top, which is why most founders start light. Plan the whole number and hold a few months of runway, because management fees build slowly as you win contracts. For a transparent quote sized to your model, our team can price it exactly. Get a free setup quote→

What are the steps to set up, and how long does it take?

A straightforward property management company takes about four to eight weeks end to end. The sequence:

1. Decide your model and activity (full management vs supervision; individual-unit vs owners' association) and write a short business plan.
2. Reserve your trade name and get DET initial approval.
3. Lease an office and register it on Ejari, expected before a real estate licence issues.
4. Draft and notarise the MOA, then issue the DET commercial trade licence with the correct activity.
5. Register the activity with DLD via Trakheesi and pay the activity fee.
6. Lodge the AED 5,000,000 bank guarantee if you took the full management activity.
7. Certify your staff through DREI and obtain their RERA registration cards.
8. Register on Mollak with the credentialed roles if you will manage owners' associations.
9. Apply for visas (investor plus staff), then medical and Emirates ID.
10. Open a corporate bank account plus a separate client-money account, and start onboarding properties.

Our post-setup services team runs the visa, RERA, and Mollak steps in parallel to compress the timeline.

What documents do you need?

For each shareholder and manager:

• Passport copy (six months validity) and passport photo
• UAE residence visa and Emirates ID copies, if already resident, or a No Objection Certificate from a current sponsor
• Dubai Police good-conduct certificate (for the company manager and, for community work, the facilities director)
• DREI course completion and RERA exam pass certificate; experience certificates for the Owners Affairs, Finance, and Facilities Management roles (community management)

For the company:

• Trade name reservation and DET initial approval
• Notarised Memorandum of Association
• Ejari-registered office tenancy contract
• A short business plan
• Bank guarantee of AED 5,000,000 (full management activity only)

How do property management fees and revenue work?

Property management runs on fees, and unlike rent increases (which RERA does cap), management fees are market convention, not a regulated tariff, so they are negotiable [11]. The benchmarks by business line:

Two more real revenue lines: Ejari registration on behalf of landlords, where a full-service manager charges around AED 400 to 500 against a government fee near AED 178, and snagging and handover inspections at roughly AED 1,000 to 5,000 per unit, often subcontracted to specialists [11].

Quick Math: Say you manage 40 apartments averaging AED 90,000 annual rent at a 6% fee. That is AED 216,000 a year in base management fees alone, before leasing fees, renewals, maintenance coordination, and any owners' association contracts. The base fee is thin per unit; the business works on volume plus the extra lines stacked on top. Plan your portfolio's numbers with us→

What is Mollak and how do service charges work?

If you manage jointly owned property, you must understand Mollak. It is the Dubai Land Department's platform that governs service charges for owners' associations, and using it is mandatory, not optional [7]. Under Law No. 6 of 2019, the money owners pay in service charges is protected, and the mechanics are strict:

• Escrow, not your account. Service charges collected from owners must go into a DLD-regulated, RERA-approved escrow account, commonly cited as within seven working days of collection. They cannot sit in your operating account or be spent outside the approved budget [7].
• Approved budgets only. Before you can invoice owners, the annual service-charge budget must be prepared, tendered (typically at least three competitive quotes for major services), reviewed against the DLD Service Charge Index, audited, and approved through Mollak [7].
• Every dirham is tracked. Owners pay through Mollak and the Dubai REST app, and every collection and expense is recorded against the building's budget.

Service charges themselves run from about AED 3 to 30 per square foot a year for standard stock, rising above AED 50 for prime towers [10]. Your management fee comes out of the approved budget, typically 8% to 15% of it.

Common Mistake: Treating service-charge money as company cash flow. Co-mingling owner funds with your operating account is both a Law No. 6 of 2019 violation and the fastest way to lose owner trust and your contract. Keep client money genuinely separate from day one.

Do property management companies pay corporate tax and VAT?

Yes, and there is one VAT rule that catches nearly everyone. A mainland property management company pays UAE corporate tax at 9% on taxable profit above AED 375,000, and 0% below that [5]. The free zone 0% "Qualifying Free Zone Person" route generally does not help: property management is not on the qualifying-activities list, most clients are mainland, and the safe default is that management-fee income is mainland-taxed at the normal rate [5]. Small Business Relief can treat a company with revenue under AED 3 million as having no taxable income, but 2026 is the final year it is available and you must elect it on EmaraTax [5]. Read our UAE corporate tax filing guide for detail.

On VAT, the standard rate is 5% and you register once taxable turnover passes AED 375,000 [6]. Two points matter for managers:

• Your management fee is standard-rated at 5%, even on residential property. Residential leases are largely VAT-exempt, but your management and maintenance service is a separate supply that is taxed at 5% regardless [6].
• Service charges are not a simple pass-through. The Federal Tax Authority's clarification on Dubai owners' associations and management entities (VATP022) treats a licensed management entity's collection of service charges as its own taxable supply, not a disbursement, so VAT is generally accounted for on the amounts invoiced to owners, not only on a slim fee line [6]. This can also push your revenue over the corporate-tax and Small Business Relief thresholds faster than founders expect, so confirm both your VAT and tax position with a specialist before you set your invoicing.

Pro Tip: Because service-charge collections can be large, most active community managers cross the AED 375,000 VAT threshold quickly. Register early and get your invoicing reviewed by a tax adviser, because the service-charge VAT treatment is the single most common thing new managers get wrong.

Do you need AML or goAML registration?

Here is a genuinely useful distinction most articles miss. Real estate brokers and agents are Designated Non-Financial Businesses and Professions (DNFBPs) and must register on goAML, because the anti-money-laundering trigger is concluding the buying or selling of property for a client [7][8]. A pure property or community management company, one that leases, collects rent and service charges, and maintains buildings but does not broker sale-and-purchase transactions, is on the weight of the guidance not a DNFBP, and so is not independently required to register on goAML or file the same reports [8].

That said, two cautions:

• If your company also brokers sales, even as a side activity or a sister brokerage arm under one licence, that activity is unambiguously a DNFBP and must register on goAML and run full customer due diligence. Do not let the brokerage side's obligations get overlooked because "we are mainly a management company" [7][8].
• AML is never irrelevant. You hold large pooled client and service-charge funds, so your bank will apply its own source-of-funds checks, and you should keep clean records. Our UAE AML/CFT compliance guide covers the framework.

Because the underlying laws (Federal Decree-Law No. 10 of 2025 and its executive regulations) are detailed, confirm your specific position with a compliance adviser, especially if your licence covers more than pure management.

What ongoing compliance applies?

Running a compliant property management company is an annual cycle:

• RERA registration and staff cards renewed annually, with continuing professional development for certified staff.
• DET trade licence and DLD activity renewed annually.
• Owners' association obligations for community managers: an annual general assembly (with the required written notice), an approved budget submitted through Mollak, and a mandatory annual service-charge audit by a RERA-approved auditor. RERA can appoint its own auditor if it has concerns [7].
• Corporate tax registration and annual filing; VAT filing, usually quarterly, once registered.
• UBO register maintained and updated, identifying anyone owning or controlling 25% or more.
• Bookkeeping and records kept for at least five years (longer for certain real estate VAT records, so confirm retention with your adviser).

Can you also manage holiday homes?

You can, but it is a separate licence, not an extension of your property management activity. Short-term letting (stays under six months) is regulated by the Department of Economy and Tourism, not RERA, and managing holiday homes on behalf of owners needs a DET Holiday Home Operator trade licence plus a per-unit permit, cited around AED 1,520 per unit a year, on top of Tourism Dirham and municipality fees [1]. Fees are the highest in the sector, commonly 15% to 25% of booking revenue, because the service is hospitality-grade.

Common Mistake: Slipping a few Airbnb-style units into a long-term management portfolio without the DET operator licence. Short-term letting without the permit carries escalating fines, from around AED 5,000 for a first offence up to AED 100,000 and blacklisting. There is a second trap too: the developer or owners' association, not just DET, decides whether short-term letting is even allowed in a building, so you need their No Objection Certificate before you list a unit.

How do you open a corporate bank account?

Expect more scrutiny than a normal trade licence, because you handle other people's money. Banks apply enhanced anti-money-laundering checks to real estate companies, and property management adds a fiduciary layer since you hold rent and service-charge funds [7]. A RERA-registered company with a clear model and clean documentation fares far better.

You will typically need at least two accounts: an operating account for your own revenue and payroll, and a separate client-money or trust account for rent and service charges, with owners' association funds sitting in Mollak-linked accounts per building. Segregation is a compliance requirement, not just good practice. Do not confuse this with developer escrow under Law No. 8 of 2007, which is a different mechanism for off-plan buyer funds. Banks like Emirates NBD, RAKBANK, Mashreq, and ADCB are common choices; a signatory must attend in person, as no UAE bank opens a business account fully remotely. If you have been rejected before, our guide on overcoming bank account rejection walks through the fixes.

What technology and software do you need?

Technology is what lets a small team manage a large portfolio without dropping tenants or missing maintenance. The common stack in Dubai:

• A property management platform. Larger portfolios use Yardi or MRI (strong on lease management, financial reporting, and combined facilities management); regional and mid-size firms often run PACT or Elate. Boutiques start lighter, a leasing tool plus disciplined maintenance dispatch, and adopt full facilities-management software once community contracts justify it.
• Mollak and Dubai REST for owners' association service charges and owner payments.
• Ejari for registering tenancy contracts on behalf of landlords.
• A maintenance and ticketing workflow so repair requests are logged, dispatched to vetted contractors, and billed transparently.

Pro Tip: The highest-return investment is a proper maintenance workflow with a vetted contractor panel. In Dubai's climate, slow maintenance response is the top driver of tenant churn and bad reviews, and it quietly loses you owner contracts. Systems beat hustle in this business.

How do you hire and staff a property management company?

Staffing is where the RERA rules bite. Anyone practising a registered activity on behalf of third parties needs their own RERA registration card, and community management needs the credentialed roles described earlier [1]. The typical team and 2026 salary benchmarks (directional, AED per month):

Every RERA-carded hire needs a residence visa sponsored by your company, and mainland visa capacity is tied to your office size, roughly one visa per nine square metres, so plan your office footprint before you scale headcount [1]. Our post-setup services team handles the staff visas and RERA card processing.

Pro Tip: Do not over-hire before contracts land. Property management margins are thin per unit, so a lean team that manages a growing portfolio well beats a big team waiting for work. Add the credentialed community-management roles only when you have owners' association contracts to justify them.

How do you win property management clients?

A licence does not bring owners. New firms win business by proving reliability, because owners hand over their most valuable asset and want to trust you. What works in Dubai:

• Overseas and absentee landlords. A large share of Dubai property is owned by investors who do not live here and need a manager they can trust remotely. This is the core client base for a new firm.
• Developer and handover relationships. New buildings need management at handover, and being ready with snagging and leasing services wins early portfolios.
• Brokerage referrals. Sales brokers meet investors who then need a manager; a referral relationship (or a sibling brokerage) feeds a steady pipeline. See our real estate brokerage setup guide for the other side of that cluster.
• Transparent reporting. Owners stay with managers who report clearly on rent, expenses, and maintenance. Good reporting is the cheapest retention tool you have.
• A niche. Own one community, one building type, or one investor nationality rather than chasing every unit across the city.

Real Talk: The firms that grow are the ones owners recommend to other owners. In a market this connected, one badly handled maintenance issue or one late rent transfer travels fast. Reliability is the marketing.

What mistakes do property management founders make?

The predictable, expensive errors we see:

• Registering the wrong activity. Taking the supervision-only licence to skip the guarantee, then collecting rent in your own name, which is practising the full activity unlawfully.
• Co-mingling client money. Mixing rent or service-charge funds with operating cash, a compliance breach and a trust killer.
• Ignoring the Mollak and audit rules. Managing owners' associations without proper Mollak registration, approved budgets, and the annual service-charge audit.
• Missing the service-charge VAT treatment. Assuming service charges are a simple pass-through and under-accounting for VAT.
• Adding holiday homes without the DET permit and the developer or owners' association No Objection Certificate.
• Under-staffing credentialed roles, then being unable to register on Mollak for community contracts.
• Slow maintenance response, which quietly loses tenants and owner contracts in Dubai's climate.

Common Mistake: Underestimating the true operating cost. Founders price the licence but forget per-staff RERA cards, visa renewals, insurance, and the software that makes the model work. Plan the whole number.

Real Client Stories

These are real examples from businesses we have helped set up. Names have been changed for privacy.

Meera's lean individual-unit start (Dubai mainland)

Meera, a former banker, wanted a property management business but did not have AED 5 million for the full-activity guarantee. We set her up on the individual-unit management route with the correct RERA registration, focused on overseas landlords who owned apartments in one community she knew well, and kept the office modest. First-year cost was about AED 65,000. She built to 60 managed units in eighteen months on referrals from happy owners, then began planning the move to the full activity. Her tip: "I almost gave up when I saw the AED 5 million number. The lighter route let me start, prove the model, and grow into it."

Ahmed's owners' association pivot (Dubai mainland)

Ahmed ran maintenance contracts and wanted to move up into community management. We registered his company for owners' association work, but the real work was staffing: he had to bring on an experienced Finance Manager and Facilities Management Manager before Mollak would register him. Once he did, he won two building contracts. His advice: "Community management is a people-and-credentials business before it is a buildings business. Get the qualified managers first, then chase the contracts, not the other way around."

Priya's holiday-homes lesson (Dubai mainland)

Priya managed long-term rentals and started quietly listing a few owners' units as short-term holiday lets to boost yield, without the DET operator licence. A fine and a listing takedown followed. We helped her get the proper Holiday Home Operator licence and, importantly, the owners' association No Objection Certificates for each building. Her takeaway: "Short-term letting is a different licence and the building has to allow it. I learned that the expensive way. Do it properly and it is a genuinely higher-margin line."

Start your Dubai property management company the right way

Property management in Dubai is a real recurring-revenue business, but it rewards operators who respect the structure: the right licence for your model, the AED 5 million guarantee only where it applies, RERA and Mollak done properly, client money kept separate, and the VAT and tax treatment set up correctly from the first invoice. Get that foundation right and a managed portfolio pays you every month.

Since 2013, BusinessDubai.ae has completed 700+ company registrations across the UAE, including real estate and property management companies, with transparent itemised pricing and no hidden fees. We will confirm the right activity for your model, handle the RERA and Mollak registrations, sort your office, visas, and bank accounts, and give you a clear all-in budget before you commit. Talk to a setup expert→ for a clear plan for your property management company.

Frequently Asked Questions

How much does it cost to set up a property management company in Dubai?

Budget AED 60,000 to 150,000 for the first year for a compliant, staffed company, before the AED 5,000,000 bank guarantee if you take the full management activity. A lean supervision or individual-unit setup can start around AED 40,000 to 60,000. The DET licence runs AED 10,000 to 25,000, the DLD activity fee about AED 15,020 a year, plus office, visas, and staff certification.

What licence do I need for property management in Dubai?

There are two. The full "Leasing and Management of Others' Property" activity lets you lease, collect rent, and hold owner funds, and requires a AED 5,000,000 bank guarantee. The "Real Estate Management Supervision Services" activity covers supervision and coordination without holding rent, and does not require the guarantee. Both are DET licences registered with RERA through Trakheesi.

Do I really need the AED 5 million bank guarantee?

Only if you register the full third-party management activity that collects rent and holds owner funds. The supervision-only activity, and much owners' association work, does not require it. The guarantee is a secured bank facility, not cash you spend, but it is the main barrier to entry for the full activity, which is why many founders start on the lighter route.

Is property management the same as real estate brokerage?

No. Brokerage means buying, selling, and leasing property on commission and requires broker cards. Property management means managing property for owners for a recurring fee. They are separate RERA activities, and a company registered for one cannot legally do the other without registering that activity too.

Can a foreigner own 100% of a property management company in Dubai?

Yes. Since the 2021 Commercial Companies Law reform, a foreign national can own 100% of a mainland property management company with no Emirati partner or local service agent.

What is Mollak?

Mollak is the Dubai Land Department's platform for managing jointly owned property service charges. Owners' association budgets are approved and service charges collected through it, and the funds must sit in RERA-approved escrow accounts. Any company managing owners' associations must register on Mollak with credentialed staff.

Do property management staff need a RERA licence?

Yes. Individuals who practise a registered real estate activity must each hold a personal RERA registration card, obtained through Dubai Real Estate Institute training and the RERA exam. Community management adds named credentialed roles (Owners Affairs, Finance, and Facilities Management managers) registered through Mollak.

What is the difference between individual-unit and owners' association management?

Individual-unit management means handling single owners' apartments or villas: finding tenants, registering Ejari, collecting rent, and arranging maintenance, for a percentage of the rent. Owners' association management means being the licensed manager for an entire jointly owned community: budgeting, collecting service charges through Mollak, running the AGM, and maintaining common areas.

How much do property management companies charge?

Individual residential management is typically 5% to 8% of annual rent, commercial 7% to 10%, tenant placement about one month's rent, owners' association management 8% to 15% of the service-charge budget, and short-term holiday-homes management 15% to 25% of booking revenue. Maintenance coordination usually adds a 10% to 20% markup on contractor invoices.

Do property management companies pay corporate tax?

Yes. A mainland property management company pays 9% corporate tax on profit above AED 375,000, and 0% below. The free zone 0% rate generally does not apply to property management fees. Small Business Relief can give 0% for a company under AED 3 million revenue, but only through 2026.

Do I charge VAT on management fees and service charges?

Generally yes. Your management fee is standard-rated at 5%, even on residential property, because the management service is a separate supply from the exempt residential lease. The Federal Tax Authority also treats a licensed management entity's service-charge collections as its own taxable supply rather than a pass-through, so VAT is usually accounted for on the amounts invoiced to owners. Confirm your invoicing with a tax specialist.

Do property management companies need goAML / AML registration?

A pure property or community management company that does not broker sales is, on the weight of the guidance, not a Designated Non-Financial Business or Profession, so it is not independently required to register on goAML. However, if your company also brokers sale-and-purchase transactions, that activity is a DNFBP and must register. Confirm your position with a compliance adviser, especially with a mixed licence.

How long does it take to set up?

About four to eight weeks end to end for a straightforward setup with documents ready: a couple of weeks for the licence and RERA registration, plus time for visas, staff cards, and, for community work, Mollak registration.

Do I need a physical office?

Yes, a real estate activity is expected to have a registered physical office with an Ejari tenancy contract. Your mainland visa capacity is also tied to office size, roughly one visa per nine square metres, so the office affects how many staff you can sponsor.

Can a free zone company manage Dubai property?

Not directly. Managing Dubai mainland property needs RERA registration and Mollak access, which most free zone licences cannot hold. Some free zones offer a route where you form the company there and complete the RERA layer separately, but the RERA step is unavoidable. Mainland is the standard route.

What is the AED 5 million bank guarantee for?

It protects the owner funds a full-activity property manager holds. It is required for the "Leasing and Management of Others' Property" activity, lodged by the company as a secured bank facility, and is not required for supervision-only or much owners' association work.

Can I manage holiday homes with a property management licence?

No. Short-term letting (under six months) is regulated by the Department of Economy and Tourism and needs a separate Holiday Home Operator licence plus a per-unit permit, on top of your property management activity. You also need the developer or owners' association No Objection Certificate, because the building must allow short-term letting.

How do service charges work in Dubai?

Owners of jointly owned property pay an annual service charge, typically AED 3 to 30 per square foot depending on the building, to cover common-area maintenance, security, and management. The budget is approved through Mollak against the DLD Service Charge Index and audited annually, and the funds sit in a RERA-approved escrow account.

Do I need a separate bank account for client money?

Yes. You must keep rent and service-charge funds separate from your operating account, with owners' association money in Mollak-linked accounts per building. Co-mingling client money with company cash is a compliance breach. Expect at least two bank accounts.

What are the ongoing costs of running a property management company?

Annual renewals of the DET licence, the DLD activity, and each staff RERA card, plus office rent, visa renewals, corporate tax and VAT filing, the annual service-charge audit for community work, professional insurance, software, and bookkeeping. Budget for a maintenance and management platform as a core cost.

Is a property management business profitable in Dubai?

It can be, on volume and multiple revenue lines. The base management fee is thin per unit, so profit comes from managing enough units, adding leasing, renewals, maintenance coordination, and owners' association or holiday-home lines, and controlling costs. Recurring fees make revenue steadier than brokerage once the portfolio is built.

What qualifications do I need to run a property management company?

The company owner does not need a specific degree to hold the licence, but staff who practise must pass Dubai Real Estate Institute training and hold RERA cards. Owners' association management requires named managers with documented experience in owners' affairs, finance, and facilities management.

What is Law No. 6 of 2019?

It is Dubai's law on the ownership of jointly owned real property, in force since November 2019, which governs owners' associations, transfers their management to licensed management entities, and underpins the Mollak service-charge and escrow system.

Can I run property management and brokerage together?

Yes, many firms do, but you must register both activities, and the brokerage side brings AML/goAML obligations and broker cards that pure management does not. Keep the compliance for each activity properly separated.

How many properties do I need to be profitable?

There is no fixed number, but because the base fee is thin, most individual-unit managers need scale, often several dozen units, plus extra revenue lines, to be comfortably profitable. Owners' association contracts and holiday-home management can improve economics per client.

What insurance does a property management company need?

Professional indemnity insurance is standard, covering errors in advice, valuations, or documents, and is often expected by owners and banks. If you handle maintenance and staff, you will also want public liability and workers' cover. Confirm the right cover for your activity mix.

References

[1] Dubai Land Department (DLD) and RERA. Real estate activity licence (including the AED 5,000,000 bank guarantee for third-party management), the Trakheesi system, and registration for administrative supervision of jointly owned properties. dubailand.gov.ae

[2] Dubai Real Estate Institute (DREI). Property Management Training Certificate and the RERA registration exam. drei.gov.ae and dubairei.ae

[3] Dubai Department of Economy and Tourism (DET) and Invest in Dubai. Commercial trade licence and real estate management activities. dubaidet.gov.ae

[4] UAE Government Portal. Full foreign ownership of mainland companies (Federal Decree-Law No. 26 of 2020 and No. 32 of 2021). u.ae

[5] Federal Tax Authority and Ministry of Finance. UAE Corporate Tax (Federal Decree-Law No. 47 of 2022), Qualifying and Excluded Activities for Free Zone Persons (Ministerial Decision No. 229 of 2025), and Small Business Relief (Ministerial Decision No. 73 of 2023). tax.gov.ae and mof.gov.ae

[6] Federal Tax Authority. VAT (Federal Decree-Law No. 8 of 2017) and Public Clarification VATP022 on Dubai owners' associations and management entities. tax.gov.ae

[7] Dubai Land Department and RERA. Law No. 6 of 2019 on the ownership of jointly owned real property, the Mollak service-charge platform, escrow-account rules, and the annual service-charge audit. dubailand.gov.ae and dlp.dubai.gov.ae

[8] Ministry of Economy and the UAE Financial Intelligence Unit. goAML registration and Designated Non-Financial Businesses and Professions under Federal Decree-Law No. 10 of 2025; the real estate DNFBP trigger for buying and selling. moet.gov.ae and goaml.ae

[9] Dubai Land Department and market reports. Dubai completed residential stock, Ejari rental-contract volumes and values (Q1 2026), population growth, and completions. dubailand.gov.ae

[10] Dubai Land Department Service Charge Index and market data. Jointly owned communities, service-charge ranges per square foot, and Mollak. dubailand.gov.ae

[11] Engel & Völkers, Property Finder, and Dubai property management fee guides. Management-fee benchmarks by business line, tenant-placement and renewal fees, and maintenance coordination markups. engelvoelkers.com and propertyfinder.ae

[12] Department of Economy and Tourism. Holiday Home Operator licence and per-unit permit for short-term rentals. dubaidet.gov.ae

[13] Cabinet Resolution No. 58 of 2020 (as amended). Ultimate Beneficial Owner register requirements for UAE companies. u.ae

[14] BusinessDubai.ae. Internal data from UAE real estate and property management company registrations since 2013, including RERA and Mollak processing, costs, timelines, banking, and client case studies. businessdubai.ae