How much does it cost to hire a commercial property manager?

Most real estate investors recognize the need for an expert property manager in Dubai as an important element of their team. In Dubai, as in the rest of the developed world, well-known real estate companies handle property management. Because these businesses understand the rules and regulations. Furthermore, purchasing, selling, or managing a home in this area is the most difficult thing for the typical person to do. As a result, contacting property management companies is the best and simplest choice. So that all of your property’s arrangements can be handled efficiently. Today’s blog will supply you with information on several forms of fees.

So, what should the cost of property management in Dubai include? In general, most commercial property management firms charge between 2-6% of total monthly revenue. If the property’s rent is AED 100,000 or less, the property management fee is AED 5,000. If it is greater than AED 100,000, the property management fee is 5% of the rent. 

What Does Property Management Fee Include?

A “management fee” is charged by all management businesses. This charge covers basic services such as financial analysis and transactions, tenant relations management, maintenance and vendor management, and planning and reporting for the owner. Management fees are typically computed at 5% of the property’s annual rent and are paid in monthly installments.

When looking to rent a residential property or a corporate unit in Dubai, like in most other cities throughout the world, it is customary to use the services of a real estate agent. Rental agents can save you time by navigating the market and giving you the most current information on available houses and neighborhoods. What’s more, by obtaining your tenancy contract, an estate agent can protect your rights and interests throughout the process.

The property management fee is AED 5,000 if the rent is less than AED 100,000. However, if the rent exceeds AED 100,000, the property management fee is 5% of the rent. That is to say:

  • The annual rent for residents is 2-5% 
  • The rate for offices and stores is 7-10%

Other Fees Include:

Ejari Fees

The Ejari system, operated by Dubai’s Land Department, is a legally binding contract registration platform that aids in the authentication of rental contracts and agreements between landlords and tenants. The standard fee for all types of properties is AED195.

Housing Fees

The Dubai Municipality tax is 5% of annual rent and is applied in 12 installments to Dubai Electricity & Water Authority (DEWA) bills (together with every rental payment).

A Security Deposit That Is Refundable

It is usually one month’s rent and is repaid when you leave the home. Some landlords deduct a certain amount from the deposit for painting the apartment and minor repairs.


You must pay DEWA deposits in addition to monthly utility costs when renting a property. The deposit amount is as follows:

  • Deposit for Apartment:

AED 2000 (refundable when you leave)

AED 110 (connection, non-refundable) (connection, non-refundable)

  • Deposit for Villa: 

AED 4000 (deposit – refundable when you leave)

AED 110 (connection, non-refundable) (connection, non-refundable)

Cooling Fees in the District

The amount of money necessary for district cooling deposits and connection fees varies by supplier and property size. It could be beneficial to visit their websites.

Factors that Influence the cost of a Property Manager

Building Dimensions

A smaller business structure may attract a lower percentage or flat cost since it requires less effort. On the other hand, a commercial property manager will most likely outsource or personally supervise much of the management of a smaller structure. As a result, smaller buildings fetch a higher property management percentage because they must cover the manager’s time and efforts.

Large properties may require full-time staff, such as a building property manager, tenant coordinator, maintenance personnel, and janitors. The owner pays the salaries of these on-site workers separately. The property manager receives a management fee and is fully reimbursed for the cost of on-site salaries and burden in larger properties.

Property Condition

For commercial real estate managers, newer properties tend to attract lower percentages and fees. There are various explanations for this, the majority of which are intuitive. 

  • Commercial premises that are newer require less management. There will be fewer things that will break or leak. The property is less of a bother for management because there are fewer service calls.
  • Rents for properties that are in disrepair are lower. Since commercial real estate property managers frequently charge a percentage of collected rentals, they stand to gain less money as a result of the decreased prospective rent. They may have to raise their fees merely to make their time worthwhile.
  • Properties in poor condition may necessitate extensive repairs or a substantial rehab effort. Commercial property managers may charge project management fees or greater percentages to compensate for the increased responsibilities.

Rental Property Location

Rents in attractive areas, such as a city’s downtown or affluent neighborhood, can be much higher. The same factors that apply above will apply—managers may charge larger percentages for remote, low-rent office space so they don’t have to work as hard for less pay.

In addition, the location of the commercial office building will influence the management fees. If you invest in a small office building and the only commercial property manager you trust is located a long distance away, the commercial property manager may charge a higher fee to account for time spent commuting to and from your investment property.


Property amenities are included while calculating real estate management fees. Commercial property management in Dubai with several facilities, such as a gym, water feature, on-site park, and so on, may attract greater costs from a commercial property manager because these amenities necessitate more effort to administer.

Properties with amenities, on the other hand, attract higher rentals. Extensive amenities are more commonly found in newer, fancier properties. As we all know, higher potential rent collections and fewer old heating and air conditioning systems to replace drive down management fees.

Service Coverage

The more services your property management contract includes, the higher your rates will be. Commercial property management may supply fewer services than you anticipate, depending on the sort of lease involved. Some business contracts only provide the tenant with four walls and a roof. Repairs and upkeep, utility payments, and even property tax payments may fall under the purview of the tenant. The commercial real estate manager may have little to do but fill vacancies, collect rentals, and process evictions. The property management fees will be lower in this situation.

How much do property management companies earn?

A professional property management company like Next Level Real Estate evaluates profitability by calculating the time required to serve your property, which is usually on an hourly basis. The final figure is typically 20–30% more than the company’s fixed expenses. This means that pricing can vary significantly. Determine industry pricing standards in your area first, and then have vendors bid on property management jobs. While price is a crucial consideration, you should also analyze the management company’s service offerings. Fee structure, tenant testimonials, other property management clients, property types, and management personalities are all key factors to consider.

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