Want to rent your property in Dubai? There are a few things you should consider.
First, decide if you want to rent your property for the long-term or short-term. Then, decide if you want to manage the rental process yourself or hire a professional. Blueground is an ideal option if you want to rent your property in Dubai. They handle all aspects of a home rental. So, you can sit back and enjoy the income.
Short-Term VS. Long-Term
Will you need your apartment within the next few years? If so, then it is best not to get into a long-term contract. Tenants are protected by UAE law. Meaning, if you want tenants to leave, you need to inform them at least twelve months in advance.
Short-term rentals are suitable for apartments/houses/villas located in touristic areas. You can charge a high daily rate and have good occupancy levels. Keep in mind that to rent your property for the short-term requires a lot of work. Keeping a constant rotation of tenants happy is essential. You can either do it yourself or hire a property management company.
There are specific laws that govern the vacation rental industry in Dubai. Leasing a property for anything less than 12 months means it is treated as a short-term rental. You will have to register the rental online with Dubai’s Department of Tourism and Commerce Marketing. Also, there is a fixed fee for each unit or bedroom in your rental portfolio.
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Short-term rental considerations
If you want to rent your property on a short-term basis, then you can list the property on a rental website, such as Airbnb.
Short-term rentals can provide excellent earning potential. Since your house won’t be subjected to rent controls, rent can be raised whenever you want. Rental management by an agency will charge a certain percentage of the income. In some cases, this can be as high as 30%. Ensure that guests leave great reviews on your profile. Negative reviews will hurt your revenue.
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Long-term rental considerations
With long-term tenants, a fixed amount of income is guaranteed every month. Long-term rentals usually have a low vacancy rate. Generally, managing a long-term property lease is easier than a short-term lease. However, there is an interview process that should happen before a tenant moves in.
If you rent your property, there is a much higher rate of return. Blueground only handles long-term rentals, which makes the process even more fruitful. Simply ensure that you offer exceptional service to your renter. There is always a chance that you may risk an early tenant vacancy. This will cost you some income.
What are your professional options?
Thinking of hiring a professional to help rent your property? It’s critical to work with one who has experience in the local market. In Dubai, there are plenty of agencies who specialize in property management.
- Leasing agents: You can hire a leasing agent to help rent your property. They advertise your property to prospective renters. They will list the property for rent and promote it. However, a leasing agent cannot manage a property.
- Real estate agent: In Dubai, many real estate agents who help people buy and sell properties also work as property managers. They usually are not experts in property management but are willing to take on the challenge. A real estate agent has to complete a RERA property management certificate course before providing leasing and management services. There are certain factors to take into consideration before working with a real estate agent, so make sure you do your research.
- Property managers: These are specialized professionals. They usually provide full-scale property management services to landlords. When you want to rent your property they can list it as well as manage it. Their responsibilities include collecting rent, performing tenant background verification, ensuring law adherence, looking after the property’s upkeep, and maintaining landlord ledgers. A property manager can help optimize your real estate portfolio.
- Blueground: If you prefer to rent your property for the long-term, then Blueground is the best option. We actually act as the tenant. So, our landlords always receive a rental income, regardless of the occupancy state of the apartment. This alleviates the greatest drawback of long-term renting. While property managers charge a fee (usually 5% of the annual rental amount), Blueground offers the same services free of charge. Just relax and let us rent your property hassle-free!
The Landlord Resources blog is Blueground’s information hub for landlords and property owners.
Through tailored articles, landlords can find relevant information relating to renting out their apartments, decorating, maintenance & renovation, property management and rental laws specific to their city.
