It is true that hiring a property management company in Dubai will not just manage and rent your property, but also deal with tenants. In theory, real estate is considered a great source of passive income. All you need to do is buy a property, rent it out and generate a fixed amount of income from your investment.
In reality, however, being a landlord may not be your cup of tea. Particularly if you have a full-time job, a family and other responsibilities that leave you with limited time to manage your income-generating asset. The load of work a landlord has to put in will make you wonder if the income is really passive.
So, should busy people forget about investing in real estate and give up the idea of becoming landlords? Absolutely not! You have the option of hiring a property manager in Dubai to look after the day-to-day management of your rental. Yet, hiring a management company is not your only option. An alternative is renting your apartment through Blueground. But let's take a look at all available options.
Is the fee worth it?
Well, it depends. Most landlords shy away from hiring a property management company because they don’t want to pay them a commission or management fee. They believe this expense will cut into their profits big time. However, a property management company can balance it out by optimizing your rental income. It will increase revenue and reduce operating costs through the best management practices.
How can a property management company make a difference?
As a landlord, you need to perform the following duties:
- Determine the rent for your property after studying the comparable rentals in your area
- Advertise your property through the various promotional channels like online listing sites, social media, or billboard notices to your local grocery
- Register or ensure the tenant registers your property with Ejari
- Screen rental applications and conduct a tenant background check
- Look after the property’s maintenance
- Conduct periodical inspections
- Collect the rent
- Resolve complaints from tenants as they happen
- Potentially deal with legal and financial disputes
- Draw up lease documents and renew them whenever a lease expires
- Keep up with and follow all municipality and property management laws
- Communicate with tenants from time to time
- Keep landlord ledgers
- Attend community management session
- In the future, maybe even file for taxes
A property management company in Dubai will perform all these tasks on your behalf. Yet, a very good one will also:
- Devise creative ways to fill up your property whenever it is vacant
- Utilize a pool of data with regard to competition and market trends to come up with a rent pricing strategy
- Update you will all the new legal and financial obligations
- Keep good tenants satisfied with services to boost tenant retention rate and reduce vacancies
It is quite obvious that an experienced and skilled property management company in Dubai can add a lot of value to your real estate investment strategy and help you focus on your primary goal. In other words, help you grow your portfolio and income.
How much does a property management company in Dubai cost?
Well, different companies offer different property management packages and scale of services. As a result, their commission varies. Some companies charge a flat fee, while others charge a fixed percentage of rental income. This could be up to 8-10 percent.
It is important that you interview the manager about the scale of the company's services before deciding whether a particular agency is a good fit for your individual needs. You need to take into consideration the number of properties or units, the location, the condition of the building and the types of services being offered.
Know your options
Before pairing up with a property management company in Dubai, look into what each firm offers in services and how that matches your needs. Online resources like Asia Property HQ also simplify the search by providing their short list of Dubai property management companies. A few well-known options for property management companies in Dubai are:
Farnek
Since 1980, Farnek has been an international, full-service property management company for both commercial and residential units. Notably, in 2010, following a successful tender bid, Farnek received the maintenance contract for the tallest building in the world, Burj Khalifa.
Binayah Real Estate
Established in 2007, Binayah Real Estate was formed by industry professionals. They offer clients a distinguished array of services, ranging from property management, asset management, real estate brokerage services, assistance in buying, selling or renting, as well as investment and development consultancy.
Al Saqer Property Management
Al Saqer Property Management LLC was established in 2003 as a real estate development and leasing company, part of United Al Saqer Group L.L.C (previously known as Al Hamid Group of Companies). business. They own, manage and lease properties within the UAE and overseas. The development projects range from residential, commercial and retail spaces.
Fäm Properties
Founded in 2009, Fäm Properties is one of the few companies that incorporates and integrates technology into their property management services. They developed their own proprietary Oracle-based technology that is several steps ahead of the rest of the market.
Blueground
Having said all of the above, Blueground proposes services beyond just property management. With over 2,500 properties worldwide, Blueground has become the hassle-free "go-to" option for property owners in Dubai. Especially for landlords based abroad, having a local partner who effectively leases out your property for multiple years minimizes losses from rental gaps and headaches from tenants. In turn, Blueground furnishes your property with best-in-class furnishings to attract senior business executives and other premium tenants as sublessees.
