Several people have ventured into the world of real estate investment in the last decade or so. Since Dubai’s property market is evolving, now is an excellent time to take advantage of it. UAE citizens as well as foreign investors are eager to find the right opportunity due to incredible infrastructure development and friendly laws. Residents and investors have bought properties for long-term investments and expanded their portfolios beyond one or two locations. When you get the right price, you might even decide to rent out your property in Dubai for some time before you sell it off for considerable profit in the future.
All You Need To Know About Renting Your Property
People rent out property in Dubai for two main reasons. Your investment is likely to pay off sooner than later, as mentioned above. The most attractive source of passive income is undoubtedly having a rental property.
A second key factor is the protection of landlords and renters offered by the government. Apartments and villas both have clear policies protecting the rights of all parties involved. Whenever a dispute arises, the RERA is able to make decisions in a timely and transparent way. The result is a win-win situation that enables people to invest their hard-earned money with confidence and feel safe.
If you are in a similar situation and you are wondering whether renting out a property in Dubai would be easy or difficult, we have got you covered.
Tenancy Contracts: Short-term Or Long-term
Choosing a tenant is one of your first responsibilities as a landlord. If you want to rent out your property in Dubai, could you do it for a few months or longer? There are advantages to both approaches. Short-term deals are beneficial if your apartment or villa is close to a tourist attraction. You can charge higher rates without worrying about rental restrictions. You will, however, need to register with Dubai’s Department of Tourism and Commerce Marketing before you can do this.
Keep the occupancy rate high regardless of the length of the contract. It may be difficult for some. There is, however, always the option to hire a property management company to handle everything for you.
Conversely, long-term tenancies offer a steady stream of income without having to put in as much effort. However, you are going to give a portion of your income away in exchange for stability.
Getting Your Property Ready
If you want to rent out your property, you might need to do a quick refurbishment. Even if it’s something functional like plumbing or electrical work, or even something to make the place more visually appealing, it makes sense to get it done before renting. If you’re not sure how to deal with the process, you should hire an interior design company in Dubai.
How To Get A Comparative Market Analysis
As a rental property investor, you must assess the properties’ value, understand market conditions, and set the best price. You can get a good idea of what rent to ask for your property by doing a Comparative Market Analysis. It is possible to carry out this search via Dubai real estate agencies or you can do the research online.
Each property has unique characteristics that can increase or decrease its value. If you set the price too high, you may turn off many potential tenants and the delay will cost you money. If you accept a lower price, you will lose a fair amount of income.
Whether you are renting out a villa or an apartment in Dubai, CMA is a great choice.
Landlords can try to do it on their own without professional support at any time. Due to the technical expertise needed, the documentation, and the time involved, professional assistance is recommended.
There are many brokers and lease agents on the market who can help you with the process. Or, you can hire a reputable real estate agency.
If you are not comfortable dealing with a property manager, you can hire a company that manages rentals, performs background checks on tenants, and performs periodic maintenance. Property management companies can be useful if you have multiple properties or don’t have the time to manage them yourself.
When seeking professional help to rent out a property, all landlords are required to sign the RERA listing form. Title deed, passport copy, and signed listing agreement are all required.
Don’t forget to get all the documentation right when you rent out your property in Dubai. A real estate agent can make your life easier.
Market Your Property
It does take some effort and monetary expense on your part to market and promote a rental property in Dubai. Professional pictures and HD videos of apartments and villas are more likely to catch the attention of the public than a simple ad with a random photo from your phone.
The potential renter should also feel comfortable during viewings, and your schedule should be flexible. The maintenance of your property is also imperative throughout the whole transaction.
Doing Your Research
Whenever you have a potential tenant, it’s essential that you do your research. A credit and background check, for example, is a great way to uncover potential issues. You can also request a Certificate of Good Conduct. Some landlords prefer to speak with the previous landlord to ensure they won’t cause problems. A person’s public social media profiles can also be useful.
The Tenancy Contract
It is time to sign on the dotted line if everything seems to be in order. When you use a real estate company, they usually use a RERA Unified Tenancy Contract. Request an Ejari certification once you’ve signed the papers. It is one of the most important steps in renting a property in Dubai.