Understanding Legal Liabilities Of Property Managers In UAE

Understanding Legal Liabilities of Property Managers in UAE

Have you ever considered becoming a property manager in the United Arab Emirates (UAE)? It may appear to be an exciting and lucrative profession, but it entails much more than simply collecting rent and maintaining properties. 

Property managers in the UAE are bound by extensive legal obligations that they’re obligated to comprehend and adhere to. Failing to do so may end them into facing serious consequences. Property managers have quite a variety of responsibilities, from law and regulation compliance to lease agreements and financial management. In this blog, we will look at the legal responsibilities of property managers in the UAE, as well as what it takes to efficiently manage properties in the ever-evolving UAE. Read ahead to learn about the legal responsibilities of property managers in the UAE. 

Who Are Property Managers? 

Property managers are individuals or businesses who manage properties on behalf of property owners. Landlords tend to employ them to manage an array of property management activities including rent and other payment collection, property maintenance, tenant vetting, rental contracts, and financial reporting. Residential, commercial, and industrial properties are all examples of properties that property managers may work with. 

Basic Duties of a Property Manager

A property manager’s job is multidimensional and necessitates a diverse set of qualifications and knowledge. They must be informed about local property management guidelines and laws, have excellent interpersonal and customer service abilities, and be capable of overseeing financial documents and expenditures. They must also be able to handle conflict and settle disputes among tenants and property owners. 

What Responsibilities Does a Property Owner Have Then?

If a landlord or property owner hires a property manager or property management company, their obligations might well be mitigated, but they must still meet certain obligations. Among these responsibilities are: 

  • Hiring an efficient property manager: Property owners, first and foremost,  must hire a skilled and knowledgeable property manager or a property management company that is able to successfully manage their properties. 
  • Supervision: Property owners must monitor the property manager’s tasks to ensure that they are meeting their commitments. This includes auditing financial information, examining the property on a routine basis, and advising on critical decisions. 
  • Financial Planning: Whilst management company or the property manager is in charge of day-to-day financial planning, property owners must verify that they receive regular financial statements and that their properties are profitable. 
  • Communication: Keeping in touch with the property manager, tenants, and other stakeholders is important to ensuring everyone is on the same page and that any issues are responded to as soon as possible. 
  • Legal Liabilities: Property owners are essentially liable for adhering to all legal obligations associated with property management, such as zoning laws, building codes, and environmental regulations. 

Do Property Managers Have any legal Liabilities too?  

The property management scenario in the United Arab Emirates is one of triumph and tragedy. While property managers can manage some of the region’s most valuable and prestigious properties, maximizing profits and ensuring tenant and property owner satisfaction. 

They also, on the other hand, comply with legal liabilities that they must understand and follow. Failure to do so may have serious consequences for the property managers and their clients.  

Legal Liabilities of Property Managers & Property Management Companies in UAE

Property managers oversee a high-value asset for their clients. As a result, being a property manager entails a great deal of responsibility. Typically, property owners enter detailed contracts with property managers. To avoid potential legal liabilities with tenants, these contracts specify exactly what the property manager is liable for. 

Even if a clear contract is drafted, property managers must still be prepared for issues. Especially if there is a disagreement with the property owner. It is highly recommended that you review the following information to gain a clear understanding of the potential legal liabilities of property managers: 

1. Crimes committed on the property. 

The property management might be responsible for losses caused by crimes perpetrated at the property, based on how specifically the contract is worded. To safeguard the property and maintain it in the greatest shape possible, property managers need a defined plan of action. 

Check your contract very carefully if you are a property manager. By doing so, you may determine the precise steps you need to follow to give the property the best protection. 

2. Tenant’s Behaviour and Actions 

Organizations that oversee rental properties may also be held accountable for tenant misbehaviour. For instance, property managers must consider a neighbour’s complaint seriously if a renter has been accused of cyberstalking. The property management business may be held accountable for failing to swiftly evict the tenant if it dismisses the complaint and an assault follows. 

The task of finding suitable tenants for the buildings they manage falls under property managers. These tenants must not only be able to pay their rent, but also respect the neighbourhood. 

These tenants must also abide by all applicable local rules. If the property management company does not adhere to these stringent rules, they risk further sanctions for breaching a crucial stipulation of their property management contract. 

3. Flawed Construction 

Construction must also be avoided by property managers. Construction or improvements on the property must be closely supervised by the property management firm. The corporation may be responsible for the damages if it failed to supervise the building and there were flaws. Property management businesses must exercise extreme caution when choosing reliable, licensed, and experienced contractors. 

Property management businesses must regularly check each project for poor construction in addition to selecting a certified contractor. If any, the business must ask for renovations to keep tenants secure. If the property management business doesn’t fulfil these obligations, any injuries that take place on the property may make them liable. 

4. Environmental Hazards 

Property managers frequently face legal obligation for environmental risks. Environmental risks include things like mould, lead, and pests, and property managers may be responsible for them. Property managers should periodically check for these problems. 

These significant growths pose a risk of injury to the tenants who are renting the house. If it can be shown that property management businesses should have been aware of the risk and the need for repairs, they may be held responsible for mould, lead, or insect problems. 

Importance of a Property Management Company

To keep your real estate investment well-maintained and optimize the money it produces; you must hire a property management company or a property manager. Property owners may avoid wasting time, money, and frustration by utilizing their experience managing properties, dealing with tenants, and assuring legal compliance. 

We at IFPM recognize that owning and managing a property may be difficult, which is why we provide a wide range of property management services that are specifically designed to satisfy the individual requirements of each customer. 

Our dedication to providing great service and our focus on establishing enduring connections with our clients set us apart from other property management firms in Dubai and the UAE. We take pride in being accountable and making sure that all laws are rigorously followed, from monitoring tenant contracts to making sure that local rules are obeyed.  

With the use of cutting-edge technology, an experienced staff, and a team of specialists, we offer unmatched transparency and accountability, offering our clients peace of mind and the assurance that their property is in capable hands. For hassle-free and effective property management, choose IFPM. 


Property management is a substantial and complex responsibility that demands a complete awareness of regional rules and ordinances. Property managers in the UAE need to be knowledgeable about both their own legal obligations and liabilities as well as those of the property owners.  

Property managers must keep up with the most recent laws and take precautions to reduce their legal risks because property management is becoming more complex in the area. Property owners in the UAE can contribute to ensuring the success of their assets over the long run by working with knowledgeable and seasoned property managers and taking proactive actions to protect their properties. 

Contact Us Today

Island Falcon Property Management eliminates all the stress associated with property investments. We believe our no-fuss approach is the most effective way to provide our clients with our full services seamlessly.

If you have any queries related to:


Simply dial our toll-free number


Email your inquiry