Dubai's shared housing rules: permits, 44 approved areas and fines of up to AED 1 million

For anyone who owns a rental property in Dubai, or plans to buy one, the main points are below.

• A permit is required. A landlord's consent on its own is not enough.
• Only the owner or a licensed establishment may rent out shared accommodation.
• An authorised operator may manage the property for the owner, or lease it and sublet it to residents.
• Tenants cannot sublet. That covers the home and any room or bed space in it.
• The whole building or villa must be designated. Part of a building cannot be.

Each unit is allocated to one category of resident, such as families, women, men, students or employees.

Families and individuals cannot share the same unit. A family unit may house more than one family if each has its own bedroom with a private bathroom.

Buildings for individuals must also have shared dining and recreation space, and laundry and drying areas.

Dubai Municipality has named more than 44 areas, with more to follow. They are mostly older districts in Deira and Bur Dubai, with a few elsewhere:

• Throughout the area: Al Ras, Naif, Al Rigga, Al Muraqqabat, Al Muteena, Hor Al Anz, Al Rashidiya, Al Qusais, Al Nahda 1 and 2, Muhaisnah 4, Al Twar 5, Al Souq Al Kabeer, Umm Hurair 1 and 2, Al Raffa, Al Karama, Oud Metha, Jumeirah 1, Al Badaa, Al Barsha 1 and Al Warqa 1, among others.
• In designated parts only: Abu Hail, Al Baraha, Al Hamriya, Mankhool, Al Jaffiliya, Al Hudaibiya and Al Satwa.

On Sheikh Zayed Road, Jumeirah Road, Al Wasl Road and Baniyas Road, shared housing is for families only.

Being in an approved area does not make a property eligible by itself. It must still meet the planning and building rules and get a permit, applied for through the Dubai Building Platform.

• Fines: AED 500 to AED 500,000, depending on the breach.
• Repeat within a year: the fine can double, up to AED 1 million.
• Other measures: suspension of the activity for up to six months, cancellation of the permit or trade licence, disconnection of utilities, and a block on registering tenancy contracts for the property.

Existing owners and licensed operators have one year from the date the law takes effect to comply.

Most new homes are not affected. The approved areas are established rental districts. Homes in new master communities are let as whole units to one household, which is not shared housing.

Check your tenancy contract. If a tenant sublets rooms or bed spaces without a permit, the penalties can reach the property itself, including a block on registering new contracts. Ask your property manager how the home is occupied.

Do not count on room-by-room income. If your yield figures assume letting rooms separately, check first whether the building can get a permit in its area.

For how rental income is worked out, see the best areas in Dubai for rental yield. For a recent look at how tenancy disputes are handled, see Dubai rental disputes settled in six days on average.