Dubai property management: checking fees and monthly statements

For a Dubai apartment managed from Hungary, compare proposals using three questions: what amount the fee is calculated on, which tasks it covers and how you can verify the cash movements. Request an itemised scope, sample statement and written repair-approval process before appointing the manager.

This guide provides an original method for reviewing a long-let apartment’s management proposal and financial statement. The related Ejari article explains tenancy registration. Compare short-term accommodation fees and permits separately; the example below is not a holiday-home business plan.

DLD’s management-contract registration page specifies a company licence for a tenancy-related activity, an authorised system user and a copy of the signed management agreement. Obtain the contracting company’s exact name, licence details and appointment documents for your apartment.

The same DLD page lists the registration service as free and identifies a registered management contract as its output. That describes the official service; obtain the manager’s commercial fee separately. Record the contracting party, signatory and financial contact as separate entries in your worksheet.

Ask whether the percentage applies to contractual annual rent, amounts actually collected or another basis. Establish payment dates, any minimum fee, the final amount including applicable tax and treatment of vacancy. Do not rank percentages in isolation when proposals use different calculation bases.

Request separate prices for tenant placement, renewal, inspections, repair coordination and closing the appointment. Mark each task as included, charged separately or excluded. Ask about any management mark-up added to a contractor’s invoice.

The statement should identify the unit, reporting period, opening balance, money received, every deduction, owner payout and closing balance. Show rent due under the agreement but not yet received separately. A signed tenancy agreement alone does not prove receipt of money.

Request an invoice or receipt for each cost and a record of approval where required. Match the owner payout against the credit received in your own account. If rent is paid directly to you, the statement should reflect that route; do not count the same receipt twice.

For illustration only, assume the manager’s statement shows an opening balance of AED 2,000 and AED 8,000 of rent actually received. The assumed management fee is AED 400, an approved repair costs AED 650 and the owner payout is AED 7,000. Both costs are final amounts in this example, with no further tax or fee added. These are hypothetical calculation assumptions, not market quotations.

Calculated closing balance: 2,000 + 8,000 − 400 − 650 − 7,000 = AED 1,950. Match this against the statement’s closing balance, then ask what the remaining amount represents. The example contains no tenant deposit. In an actual statement, separately identify deposits, advance receipts and committed but unpaid costs; do not automatically treat the cash balance as profit available to withdraw.

In the appointment, clarify which repairs need prior approval, what spending authority is delegated and how emergencies are reported. Record more than an amount: name the person contacting you, the information they must send and a substitute if you cannot be reached. These are service terms to agree, not regulatory thresholds prescribed by this article.

Request a brief fault description, photographs where useful, a quotation and confirmation of completion. In the monthly review, the approval, invoice and deduction should refer to the same repair. Keep a discrepant item open and specify the document needed to reconcile it.

DLD’s FAQ says a management contract cannot be transferred between companies: the old contract must be cancelled and a new one created with the new company. Agree the appointment’s termination terms and the system administration separately; do not mark the entire change complete just because a new contact has been announced.

Your handover list should cover the final statement, remaining funds, deposit records, open repairs, keys and document copies. Agree who receives tenant enquiries and who monitors the next tenancy deadline. Obtain confirmation for each item handed over.

Does a lower percentage mean cheaper management? A meaningful comparison needs the same fee basis, scope and additional charges. Ask both firms to price the same assumed annual task list and record excluded work alongside it. This guide does not establish an average market fee.

Is a monthly summary email enough? Request a statement that traces the movement from opening to closing balance and supports deductions with evidence. A sample statement is useful even before buying: it shows the information you will later use to make operating decisions.