Becoming a landlord in an affluent place like Dubai can be a successful way to complement your income and generate a reliable asset investment. If you are going to move into the property or real estate market in this area of the UAE, as a landlord you need to adhere to certain requirements. It’s always useful to get to know the local policies and regulations so you have a clearer picture of what to expect. This guide to renting an apartment or an object explores letting a property and how the landlord can do it properly to maximise that all important rate of return.
Covering the Basics
Before you get into the finer details, it is important to discuss the basics. Whether you are a foreign investor or otherwise, Dubai is a lucrative market and one that is not losing traction in any real capacity. For people who own property looking to move into the rental or real estate market as a landlord, here is a step by step guide to what and how to do.
You will need to get your property valued by an official body. A professional valuation will determine what you are able to fairly charge for monthly rent.
Sit down and consider your management options. The landlord led management is a popular model; however, there are plenty of advantages to considering a professional property management service too.
Step three will depend on whether you are leading the process or leaning on the experts. This typically entails the hunt for a reliable tenant and conducting viewings. Expert property management Dubai centred companies like UpperKey will be able to offer insight and specific knowledge at this stage. It is clear that short let management Dubai property market advantages reach far and wide.
The final stage will be around creating a legally binding tenancy contract between a tenant and landlord.
Short-Term Rentals in Dubai through Airbnb
There is a strong argument for investors to dive into the short-term rental market. With options to explore like Airbnb and even hotel-style rentals to a lesser extent, alongside general holiday lets, Dubai has a lot to offer in this category. There is so much more flexibility with short-term lets and the potential for a higher return too without all the ties to long-term tenancies. It also means you have access to the property as and when you might want to use it or offer it to family and friends, etc. While there may be some concerns regarding an increase in management responsibilities on short-term let, there is a clear path to address this through the use of property management services.
Benefits of Property Management Services in Dubai
So, what are the main benefits of these services in Dubai? Well, aside from expert property management Dubai landlords gain a general sense of peace about all sorts of factors. The many benefits short term property management service Dubai properties have to explore include assurance on fair rates for tenants, marketing platforms, guaranteed bookings, income security, maintenance and safety for the property and many more. There are fluctuations in property management fees Dubai based, but if you explore the prospects with an expert like UpperKey, there will always be room for fair rates on all sides.
Airbnb in Dubai: Is It Worth It for Landlords?
Airbnb has a big presence across the UAE, and particularly in Dubai. Because the short-term rental demand is so high, Airbnb definitely found a home in the real estate market here and there is no suggestion to say that trend will end any time soon. So, yes, there is value in exploring this option outside of alternative short-term rental models, and with the bonus of services like Airbnb concierge Dubai will always have a professional approach and guarantee. Airbnb management service Dubai based is essentially a property management model that focuses specifically on properties within the Airbnb platform.
Considering Hotel-Style Rental Models
Aside from Airbnb, there are lots of options for hotel-style rentals in Dubai too. As mentioned, the short-term let demand is high, possibly one of the highest around the world. For landlords wanting a more immediate return and a high yield, this is a great option. There are also options for hotel revenue management companies Dubai focused, so you can still take advantage of a professional input enabling the process to find success.
What is the Maximum a Landlord Can Increase Rent in Dubai?
As a landlord in Dubai, if you want to increase the rent of your property, you are legally obliged to give your tenants a 90-day notice period. After this, there are a few options as to the maximum you can increase the rent by.
For properties where the rent is 10% below the market value, you can’t enforce an increase.
Where rent is 11-20% below, there can be up to a 5% increase.
If the current tenancy is 21-30% below market value of the property, the absolute maximum you are able to increase the rent by is up to 10%.
31-40% is an increase of up to 15%.
40% lower rent and beyond can increase by the maximum 20%.
Is There a Maximum Amount You Can Increase Rent By?
There is a maximum amount of increase for the landlord in Dubai. This is 20% and it has not changed since 2013. So, even if, for whatever reasons, the property’s rent is 50% less than the market value of the building, for instance, the rent increase is still capped at 20% regardless.
Will Apartment Prices Go Up in Dubai?
As trends stand currently, there is a predicted and noted increase in property prices in Dubai and the rest of the UAE. While the global housing market in countries around the world are still very much in the recovery stage of post-pandemic afflictions, Dubai have seen a significant bounce back that is only continuing to rise on up. It is a highly attractive prospect for international investors as well as internal ones, and property prices are definitely appreciating. It is worth noting that property management fees Dubai based are likely to see a correlation in terms of keeping up with the real estate market too.
What Percentage of Salary Should Go to Rent in Dubai?
There are no rules when it comes to the proportion of salary dedicated to housing costs. Every person has a different threshold, and it depends entirely on individual circumstances as to what an individual can and will accept. Rental costs realistically should never exceed over 30% of your monthly income; however, this figure is becoming less and less attainable within the current housing market. The benefits of using a property manager like UpperKey Dubai are multiple, but in this context, they can ensure a fair rental price for your tenants in line with market regulations and movements.
Considering Airbnb Dubai to Rent a Vacation Property with the support of UpperKey
Renting a property in Dubai is easier with the support of a property management company or your agent. The market is vast and there is a lot of room within for a solid return on investment with an asset that retains and appreciates the overall value. It is, without a doubt, an attractive place to step into the housing market whether the goal is short-term or long-term — though there is a lot to be excited about with regards to the short-term market. As with any major decision, take the time to thoroughly research before taking the plunge and never hesitate to lean on the experts
If you are considering Airbnb Dubai to rent a vacation property, make sure you have reviewed the tenancy contract thoroughly before you move in. It is crucial to make sure all the terms and conditions are clearly stated in the contract, protecting both the host and the guest. Additionally, before you move in, make sure you have inspected the property thoroughly to ensure it meets your expectations and matches the description provided. Don't forget to discuss and clarify any concerns or questions with the host to avoid misunderstandings. Lastly, it is advisable to inquire about the security deposit, as it serves as a safeguard against potential damages and can be refunded upon a satisfactory check-out inspection.