Dubai has introduced clear rules for renting apartments and houses to several occupants.
On 26 August 2026, the law regulating real estate units for shared housing came into force in Dubai (Law No. 4 of 2026). It applies to shared apartments, houses and other residential units, including those in free zones and special development areas. Collective labour accommodation is not covered.
What changes for owners.
A unit can now be used for shared housing only with a permit. Management contracts, tenancy agreements and occupant details must be entered into the Shared Housing Register maintained by the Dubai Land Department. For the landlord or operator, a tenancy takes effect only after registration.
Rules for operators and advertising.
Companies that manage or sublet such units need official approval. Each permit sets a maximum number of occupants, and the property must meet planning, fire, health and electrical safety standards. A sign in Arabic and English showing the permit holder must be displayed, and adverts must include the approved name and permit number.
Deadlines and fines.
Existing owners and operators have one year, until 26 August 2027, to bring their units into line with the law; Dubai Municipality may grant one extension. Fines range from AED 500 to AED 500,000 and can double, up to AED 1 million, for a repeat violation within a year. Permits can also be cancelled and operators suspended.
Tenants' rights.
Tenants may terminate a contract with at least 30 days' notice, unless the contract states a longer period, and can challenge an eviction order within seven days of being notified.
Why it matters.
The new rules make the rental market more transparent and safer, and protect the value of buildings for owners who rent out properly. If you are buying an apartment for rental income, Empire City will advise on the best rental format under the new law.
Based on the text of Dubai Law No. 4 of 2026 and coverage by Arabian Business (19 September 2026).
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