Many people have entered the field of real estate investment during the last decade or so. Because Dubai’s property market is always changing now may be a good moment to investigate this possibility. Massive infrastructure development, along with accommodating rules, means that not only UAE residents, but also international investors, are ready to locate the appropriate opportunity. You’d come across residents and investors who expanded their portfolio beyond one or two locations and purchased properties as long-term investments. You might also consider renting out your Dubai home for a period of time before selling it for a significant profit if the correct price is provided.
ALL ABOUT RENTING YOUR PROPERTY IN DUBAI.
There are two primary reasons why individuals rent out property in Dubai. As previously said, your investment is likely to provide results sooner rather than later. Of course, owning a rental property is one of the most attractive ways to earn passive income.
Another significant concern is that the government provides protection to both landlords and tenants. Whether it’s an apartment or a villa, there are clear regulations in place to safeguard the interests of everyone involved. In the event of a disagreement, the RERA – Real Estate Regulatory Agency makes decisions quickly and transparently. Naturally, it creates a win-win situation in which people feel comfortable and confident in investing their hard-earned money.
In case you find yourself in a similar situation and are unsure about the ease of renting out your property in Dubai, don’t worry; we have all the answers you need. Let’s look at all the aspects of renting out a property in Dubai.
SHORT OR LONG-TERM TENANCY CONTRACTS
You, as the landlord, must first make a decision. Do you want to rent out a property in Dubai for a few months or longer? Both methods have advantages. For example, if your apartment or villa is close to a tourist destination, short-term offers might be helpful. You may offer greater rates without worrying about rental restrictions. However, you must first register with Dubai’s Department of Tourism and Commerce Marketing.
Regardless of the contract duration, maintaining a high occupancy rate is critical. This can be inconvenient for some. However, you can always engage a property management company to perform all the job for you for a cost.
Long-term tenancy, on the other hand, provides a consistent source of revenue while requiring less effort. But keep in mind that you are giving away a portion of your money in order to achieve monetary safety.
READYING YOUR PROPERTY
Your home may require a short facelift before being listed for rent. Whether it’s anything necessary, like plumbing or electrical repairs, or something to make the home more visually appealing, it makes sense to do it before beginning the rental process. If you are unsure about current trends, engage one of the top interior design companies in Dubai to handle the procedure.
A COMPARATIVE ANALYSIS OF THE MARKET
The key to success as a rental property investor is determining the correct value of properties, recognizing market circumstances, and setting the optimal pricing. A Comparative Market Analysis (CMA) can also assist you determine how much rent to charge for your property. This is readily accomplished through real estate companies in Dubai, or by conducting your research online.
Each property has unique characteristics that might boost or diminish its value. Setting too high a price may drive off many potential tenants, and the delay may cost you money. Alternatively, agreeing to a lower rate may result in a significant loss of income.
CMA might be quite useful when renting out an apartment or villa in Dubai.
SEEK FOR PROFESSIONAL SERVICES
You may rent out the property on your own or via a reputable real estate company such as Your Place. There are no limits on landlords who attempt to make it happen without expert assistance. However, given the skill necessary, the paperwork procedure, and the amount of time required, it is prudent to obtain professional assistance.
You may always employ a leasing agent or broker to help you navigate the procedure. Alternatively, execute a contract with a respected real estate agent.
Alternatively, you may contract with a property management company, as which provides services like as rent collecting, tenant background checks, regular maintenance, and general assistance. If you have numerous properties or don’t have the time to handle them on your own, property management companies might be quite useful.
When obtaining professional assistance to rent out their home, every landlord is required to sign an RERA listing form. For the permission, you will need the Title Deed, a copy of your passport, and a signed listing agreement.
When renting out the property in Dubai, be sure you have all of the appropriate papers. A broker or real estate agent may make your life easier.
MARKETING PROPERTY
When renting out your property in Dubai, promoting and marketing your investment requires some time and money on your part. Professional photographs and HD videos of apartments and villas, for example, are more likely to catch the attention of potential buyers than a simple advertisement with a random snapshot from your phone.
Similarly, you should assist the possible renter during viewings and be flexible with your schedule. Needless to say, you must keep your home in excellent condition throughout the term.
PERFORMING YOUR SEARCH
When there is a possible tenant, it is always a good idea to perform some investigation. For example, you can have a credit and background check performed. Similarly, you might seek a Certificate of Good Conduct. Some landlords want to speak with the person’s prior landlord to ensure that they would not cause issue. Checking up a person’s public social media pages might also be useful.
TENANCY CONTRACT
If everything seems OK, it’s time to sign on the dotted line. A RERA Unified Tenancy Contract is typically used when working with a real estate company. Once both parties have signed the documents, request for an Ejari certificate. This is one of the most significant phases in renting out the property in Dubai.
FREQUENTLY ASKED QUESTIONS
IN DUBAI, HOW IS RENT PAID?
Typically, rental payments are done with cheques. The number of cheques will be determined by the landlord and tenant’s agreement.
WHAT DOCUMENTS DO I NEED TO ASK THE TENANT?
Ask for a copy of their valid UAE visa and passport. If the tenant’s visa is still in process, you can get a letter from their employer.
CAN MY LANDLORD RE-LET MY APARTMENT/VILLA AFTER EVICTING ME?
This depends on the reasons stated for the eviction.
- If the reason for eviction includes selling the property, moving in himself/herself, or a first-degree relative, the landlord cannot rent it out for at least two years.
- A landlord cannot remove a tenant and then re-let the property to someone else at a higher rent. If they do this, they will face a penalty (unless the prior renter signs a NOC).
The procedure of renting out your property in Dubai is pretty simple. The RERA laws have been streamlined to make the process more convenient. Tenants can use the RERA Dubai calculator to determine their annual rent. Furthermore, numerous expert service providers can handle all the finer nuances. Renting out a property in Dubai has never been easier.
