HOW TO TURN YOUR DUBAI PROPERTY INTO A PROFITABLE RENTAL UNIT
Thinking of turning your Dubai property into a profitable rental unit?
Now is a great time to act. Why? There are three reasons why you should not delay letting your Dubai property any longer:
- Research shows that post-pandemic, the economy is all set for a concrete recovery and prospects for Dubai’s residential property market in particular are very optimistic. In spite of the disruptions caused by the Covid pandemic, recovery and incentive programs initiated by the government, as well as by other stakeholders, have ensured the real estate sector remains resilient.
- More and more people are looking to rent out residential properties. Because of the pandemic and its fallout, people are now leaning toward greener and bigger spaces. This is quite understandable. Since work-from-home has become more of a norm instead of an exception, people are looking to move into well-designed and spacious residential units.
- Dubai still remains a renters’ and buyers’ market, and as an owner of residential property, this is something you can — and should — look to use to your advantage. By letting your property right now while the going is good, you can generate an impressive return on investment (ROI).
Which brings us to the titled question: How can you turn your Dubai property into a substantially profitable asset?
Keep in mind the following tips to help you achieve this objective:
1. Work with an experienced broker
Finding tenants on your own can be stressful and time-consuming. A much easier and more effective approach might be to rope in a broker to fill a rental vacancy. Some of the benefits of working with an experienced broker are:
- They will market the rental property for you. Reliable and experienced brokers have a vast network, which they can leverage to market your rental property and find you a suitable tenant sooner rather than later.
- They can schedule viewings with potential tenants. Your agent will interact with all prospective tenants and schedule appointments for viewing the rental property. Having this responsibility off your shoulders will allow you to free more time for other productive tasks.
- They may be able to run background checks. Many brokers have access to tenant screening services and as such may be able to run a background check on prospective tenants on your behalf.
Beneficial as a broker can prove, it is important that you pick the right team. Make sure you select a business that has a valid RERA number. Also, ensure they are registered with the Dubai Land Department.
2. Prepare the documents
Your broker can also help you prepare your documents. If you are going solo, ensure you follow the applicable rules and laws when renting out your property.
3. Determine how much rent to charge
It’s important you find out the amount of rent you should charge before kick-starting the rental process. The easiest approach is to first find out the current market value of your residential property. Consider finding a home appraiser, who can give you an accurate assessment of how much your house is worth, depending on local home sales prices, the condition of your property, and its location.
Once you have this figure, calculating the amount of rent to charge is possible by applying the rental yield percentage applicable in your area. Another way to estimate your rent is to look at popular property portals and aggregators such as Bayut or Propertyfinder. Make sure you check out properties similar to yours and in the same area.
4. Offer add-ons and flexibility
A smart way to entice tenants is by offering add-ons and flexibility. For instance, you can offer prospective tenants flexible payment options. Similarly, offering a rent-and-utilities inclusive deal may make your property more attractive to prospective tenants.
5. Market the rental property well
If you are going solo, it’s important that you market the property well. In addition to listing its basic specifications and features, ensure you aptly highlight its USP (unique selling proposition). For instance, is your property near a supermarket, a school, or a golf-course? Is it at walking distance from the metro?
With more and more people looking to rent a property in Dubai, you are likely to fill your apartment or villa in no time at all if you follow these tips.