Question: I’m a tenant and want to pay rent directly to the owner to avoid the agent commission. Is this possible and what should I watch out for? FJ, Dubai
Answer: You are not the first person to request this but be careful what you wish for. You should approach this carefully. Firstly, is it realistic? Yes, direct rentals do occur, especially in smaller buildings or where the owner has a few units. But the landlord still often uses an agent for marketing or legal administration.
I would suggest you watch out for a few points, first of which is legal registration. Make sure the lease is registered on the Ejari portal in Dubai or relevant registry of tenancy contracts. If not registered, your protection as a tenant will be weaker.
Ensure you prepare and do your due diligence because agents often handle tenant screening, contract compliance, maintenance liaison and deposit management. When dealing directly, ensure these tasks are handled (or contractualised) between you and the owner.
Get clarity on fees, even when you deal directly. Some landlords expect a “finder’s fee” or may raise rent slightly to cover marketing. Always ask: “Is rent inclusive of any implied agency cost?”
Know your rights on renewals. Agents often monitor renewal windows and tenant rights. If you’re dealing directly, ensure you understand your rights, including the notice periods, termination clauses, index-based increases, etc.
My take on this is that direct deals are feasible and can potentially save on costs, but only when handled with the same professionalism you’d expect from an agent-led transaction. Lack of registration, unclear service arrangements or ambiguous fee structures can erode the benefit. If you proceed directly with the landlord, get a contract in writing, register it properly and leave no loose ends.
Q: I'm a landlord living abroad, and I will soon be taking handover of a couple of apartments in Dubai and Abu Dhabi. I will want to rent them out as soon as possible but I'm trying to resolve any problems before they arise. What are the biggest challenges in managing tenants remotely and how to handle them? GW, London
A: This question comes up often among non-resident landlords, and the key is choosing the right partner from the start. With proper management, properties in the emirates can be true passive investments.
One of the key challenges is centred over tenant communication. When you’re not local, you rely on property managers or agents to bridge issues. Tenants often contact owners directly out of habit, which can complicate matters. Another challenge can be due to the maintenance because remote owners may not know if the building services degrade until issues pile up.
Another important factor is regulatory and legal compliance. Lease registration (Ejari or different systems in other emirates), eviction processes, renewal obligations and payments need local oversight. Also, fees, service charges and vacancy periods eat into returns if left unmanaged.
My solution to all the above problems would be to choose a reliable property management company, ideally one recommended with great local networks and one that standardises regular reporting, monthly rental income summary, maintenance log, tenant feedback and occupancy status.
In the age of artificial intelligence, ensure the company uses technology platforms or apps for owner dashboards showing rent collection, expense tracking and ticketing system for maintenance requests.
Things often do go wrong, so try to maintain a local emergency fund or reserve for reactive maintenance, so the company won't always need owner approval for urgent issues.
For your own information, try to stay informed of landlord-tenant law changes and renewal window deadlines (notice periods, etc.) so you aren’t caught off guard.
With the right set-up, being a remote landlord can work well, but it’s not completely passive. You must treat the investment as a business, so having a reliable local partner and active oversight will reduce headaches and protect your yield.
The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario@allegiance.ae
