How to turn your property into a profitable rental in Dubai
If you’ve been thinking about letting your real estate investment in Dubai, then now is the time to take action. Dubai is still seen as a buyers’ and renters’ market with attractive real estate property rates and terms, prompting investors to explore lucrative market opportunities.
Prospects for the residential property segment are seen to be optimistic according to “Post-pandemic plans for concrete recovery,” a report released by KPMG. The study delves into the analyses of Dubai’s real estate and hospitality sectors in the wake of the COVID-19 pandemic.
Despite the unprecedented crisis that has brought on significant disruptions, the real estate market remains resilient. Incentives and recovery programs by the government and other stakeholders have kept investors engaged. For example, DAMAC has come up with appealing ownership packages that make it more compelling for investors to purchase real estate property today.
Recent surveys and trends have also observed how people are leaning towards renting out ready villas and townhouses. People’s preference for bigger and greener spaces may have been influenced by stay-at-home orders when the pandemic struck.
With more and more people staying and conducting business from home, it is quite understandable that they would prefer to stay in a property that is spacious, well-designed, and part of a master-planned community just like what we have at DAMAC.
Buying property and letting it out to tenants can be an excellent medium to long-term investment. By turning it into a rental, you have a more defined way of realising your return on investment (ROI). Here are some top tips that will help you make it a more profitable asset:
1. Ally with a reliable broker
Finding the right tenants is made easier with the help of a reliable and efficient broker. An agent from a reputable agency can be your link to finding the suitable candidates that you would entrust your property to.
Make sure that your agent has in-depth knowledge of the real estate market in your area. Ensure that you only do business with someone who holds a valid Real Estate Regulatory Agency (RERA) number. The real estate company that the agent works for should be registered with the Dubai Land Department.
2.Prepare your documents
Be aware of the applicable laws and legalities involved when letting your property. Collating and organising all the documents is necessary for a smooth transaction. Your agent or property can also help you with this.
Making sure that all official papers are sorted can help get your property listed online at the soonest possible time. These documents include your Emirates ID or passport, a property title deed, and a signed Form A that your broker will give and explain to you.
3.Conduct due diligence
Besides the knowledge and market insight that your broker can share with you about property rental rates, you should also conduct your research. Browse through other property portals to get a feel of the price trends.
Visiting property sites online will allow you to compare your property with other offers in the area and even further afield. Doing so can help clue you in on current realities and will enable you to create more compelling offers for your tenants.
4.Market your property well
After doing market research, you can put together a marketing strategy that will make your property more attractive to renters.
Start by highlighting your rental property’s unique selling proposition (USP). Aside from citing your property’s basic specifications, think of something that will set it apart from other rentals in the market. Is it near a school, a supermarket, or a bank?
These days, people tend to gravitate towards large, private areas where they can conduct their business or do remote work. Also, the trend is about the availability of green spaces within the property or within the community. Take, for example, The Trump Estates at DAMAC Hills. Luxury villas here have an edge by being in a gated community that offers privacy, exclusivity, and access to a world-class golf course, themed gardens, a skate park, stables, and other sporting amenities.
5.Offer flexibility and add-ons
You should also think of other exciting add-ons or perks that will entice tenants. For example, you can offer the option of multiple rent checks or other flexible payment schemes. Other landlords also consider giving a rent-free month, short-term contracts, or a rent-and-utilities inclusive package.
Keep the market profile in mind and tailor your offers to make them more inviting to would-be renters.
You can make your property more appealing to your target market by considering the tips mentioned above. Ensure that all the legalities are in check, your broker and yourself are well acquainted with your property and the property market’s nuances, and create bespoke offers for your target market. This way, you can make good use of your asset and look forward to a profitable future with your real estate investment.