How to rent out in Dubai: 7 factors to help you achieve the highest return on investment
The blooming economic conditions, the friendly laws for investors, the safe atmosphere, and the excellent developers are some factors that push people to invest in the real estate sector in Dubai. Some choose to buy a property and resell it. At the same time, others find that renting it can be a better option. They keep the property as their own. Yet they make profits out of it. So if renting your property is your choice, you have landed on the right page. Here, you will read about the steps you need to take to rent it and achieve the highest return on investment.
Steps To Follow When Renting Out Your Property in Dubai
1. Find an excellent reputed real estate company
If you want to do it right, check with the experts! Finding an excellently reputed real estate company will make the process much easier. However, it would be best if you remembered that you should obtain a permit to advertise your property with a real estate agency. In addition, you submit the title deed, a passport copy of the owner, and a signed listing agreement to the Dubai Land Department (DLD) to get this permit.
2. Decide if you want to rent for a long-term or a short term.
You can choose to rent out your property for just a few months or for longer. Several factors play a role in making such a decision:
a. The type of property you have
If your property is close to some landmarks, it might be better to rent it out for a short time and ask for an increased rate.
b. Your preference for either stability or a high rate of income
Going for the long term means you will have a monthly income if you keep the occupancy high—this is good. However, it would help if you remembered that you would have a steady but lower rate of monthly income.
c. The efforts you are willing to invest.
The first option allows you to evade rental controls. However, you still need to register with Dubai’s Tourism and Commerce Marketing Department.
3. Prepare your property
Once you have decided which contract is best for you, it is time to prepare your property. Remember that this step is essential even if it gets you a higher return on investment (ROI). You will find no tenant ready to rent a property at a high rate if that property is a mess. Instead, check the electronics, the sanitation, and the cooling system, and make any necessary repairs. Also, consider the look of your property. If you think it needs some renovation, go for it. This maintenance might cost you money but will give you a higher ROI.
4. Decide on the right price for renting out your property.
You cannot just throw out any rate and offer your property for people to rent. Research is crucial to ensuring that your investment will be profitable. You must research the markets and prices available, as well as carefully assess the value of your property in relation to the rates you find. It is not an easy task, so it could be beneficial to ask for help from a real estate agency.
5. Market your property
You need to develop the right marketing strategy for your property to reach the right audience. Marketing for your property means setting aside a sufficient budget for videos and decent photos of your property. This step is essential to attracting the right tenants to your property. You can find a marketing agency to do the job for you if you feel it is too much to do on your own.
6. Schedule interviews with tenants
Interviewing the tenants will give you a general idea about what kind of person they are. You do not need anyone who might cause you problems. In addition to meeting your potential tenants in person, you can also check their social media accounts with their previous landlords. You are building a reputation. Having a building that has no problems will attract more customers. Drawing more customers means higher ROI.
7. Follow the regulations needed.
Once you find the right tenant to pay you the rate you asked for, it becomes time to document it all. First, you need to sign a tenancy contract. Then, when done with this step, you can apply for the Ejari certificate. If you do not know, Ejari is a government-run scheme regulating all tenancy contracts in Dubai.
In brief, there are some crucial steps that you need to follow and adhere to if you would like to increase your ROI when renting out your property in Dubai. First, bear in mind that even the smallest detail can play a significant role in your investing journey. It starts with choosing the right kind of contract and the right kind of tenant. Have you tried renting out your property in Dubai before? Are there any other pieces of advice that you would like to add to our list? Share all that you have in the comment section down below.