When we compare renting a property or buying them, it has always been a balanced number between the both across different countries. Dubai is the nerve centre for business, luxury and lifestyle, which attracts several thousands of expats every year. Some of them prefer investing in Dubai properties and plan to live here for a more extended period, while others would choose to live in a rental home to save money and a whole list of steps in buying a house. Dubai has always had a regular flow of visitors who would hunt for rental homes. This trend is only increasing by the day allowing property owners to earn a passive income through rental income. Homeowners who have properties in Dubai that are left unused at the moment can consider changing them into rental homes. This switching method would be beneficial for people looking for this type of property as well as for the landlords. Certain changes and alterations have to be performed to the housing units to make them fit for tenants to stay in these property types:
GET PREPARED FOR BEING A LANDLORD
Managing a house from the outside by playing the role of a landlord is a challenging task. Following up on tenants if there is an issue, handle maintenance regularly, intervene only when required and try fixing the damages if any. The house should be cleaned thoroughly, before it is let to tenants or open for viewings. Removing the furniture and other elements of the place can be done if they are devising to let a fully or semi-furnished house. People who do not have enough experience can do more research on the same, know all the tenancy laws in Dubai and accordingly prepare themselves for what is up for them during the tenancy.
DRAFT THE TENANCY RULES
Dubai is well known for its stringent rules imposed by the government. Anybody who fails to abide by them will face the consequences according to the penalty committed by them. Similarly, the tenancy rules and state laws have to be studied properly and this can be done with the help of property agents in Dubai. Based on the seller’s wish, they can create their own rules without having to consult others. Critical elements such as fastening the walls, causing property damage that is not caused by a natural disaster, having pet animals, allowing visitors on the grounds, and more might be included in the contract.
SORT THE HOUSING INSURANCE
Every property in Dubai or anywhere for that matter requires insurance, especially for properties that are let to people for renting. Nobody knows what type of damage might occur at any time of the year. From natural calamities like weather-based damages, or repairs caused by a tree falling etc., to accidental injuries, many of them can be claimed back easily. Many sorts of legal issues can also be covered in property insurance. As a landlord, it will include liability and housing insurance. So, indoor and outdoor repairs, including fencing and other territories are now included in the contract. Other damages caused by tenants must be fixed by them,l or legal notice can be applied against them.
PERFORM NECESSARY REPAIRS
People always look for better dwellings to reside in and make their choices carefully. Dubai homes are always appealing irrespective of where it is located or what type of property it is. If it is an unfurnished property, certain upgrades like fixing taps, closets, kitchen appliances, and other necessary pipelines to the property. When investing in old properties, landlords must make sure the jagged carpets, curtains and other old furniture must be replaced or removed. Loose nuts and hinges, bolts and windows are often left unnoticed, which should be fixed properly. When upgrading the necessary home elements, landlords must not spend too much on these repairs to save money. Other customizations can be done by the tenants themselves without damaging property.
WORK WITH PROPERTY MANAGEMENT SERVICES
Not every property owner lives close to their rental home in Dubai. Several overseas investors purchase buy-to-let homes to earn a tax-free income in the UAE. When living away, trying to follow up or be in line with the tenant’s requirements. In case of sudden damages that need immediate attention, it would become difficult for overseas buyers to attend. Many property management groups are available in Dubai that overlooks all these responsibilities. From repairs to drafting legal documents, property management services will help through every step of the process when availing of their assistance. They will charge about 10% to 15% of the monthly rent as their management or service charges.
KNOW RENTAL CHARGES AND WHAT TO INCLUDE
When it comes to pricing a property for rent or sale, the homeowners must ensure to set them according to the current market trends. Before fixing the rental rates, compare with the similar types of properties around the neighbourhood. Capping the size and type of the property in Dubai will give some idea, as to how the pricing must be done. Similarly, the rental rates and maintenance charges differ according to the furnishings provided on the property. Fully furnished homes are on the pricey side and are ready to move in for tenants. Charging for utilities like gas, electricity and other bills can either be included in the rent if needed.
Investing in the real estate business has always given back larger returns on investment irrespective of the country. One of the main reasons for Dubai’s economic growth is the flourishing property market. Owning a property worth renting in Dubai is not an easy feat, and making use of the increasing population is a wise way. Earning a rental income is consistent and will go on to improve further with time. The biggest perk of owning a rental property in Dubai is that it does not fall under the taxable income category, unlike in other countries. Investing in rental homes here in Dubai will only give the owner more financial advantages and revenue in the long term.