A step-by-step guide to renting out your apartment or villa in Dubai
Over the last decade or so, lots of people ventured into the world of real estate investment. Since Dubai’s property market continues to evolve, now might be a good time to explore that opportunity. Tremendous infrastructure development coupled with friendly laws means that not just UAE citizens but foreign investors are also keen to find the right chance. You’d come across residents and investors who expanded their portfolio beyond one or two locations and bought properties as long-term investments. Even you can consider renting out your property in Dubai for some time before selling it off for considerable profits when offered the right price.
ALL ABOUT RENTING OUT YOUR PROPERTY IN DUBAI
There are two main reasons why people are renting out property in Dubai. As mentioned, there is a high chance that your investment will bear fruit sooner rather than later. Of course, owning a rental property is one of the most attractive sources of passive income.
Another key factor is that the government ensures protection for both landlords and renters. Whether it’s an apartment or a villa, there are clear policies laid out protecting the rights of all parties involved. In case of any disputes, the decisions making process by the RERA – Real Estate Regulatory Agency is swift and transparent. Naturally, it makes for a win-win situation where people feel safe and confident in investing in their hard-earned money.
So, if you are at a similar juncture and wondering how easy or difficult would it be to rent out your property in Dubai, we have got you covered. Let’s take a look at the different aspects of renting out your property in Dubai.
SHORT-TERM OR LONG-TERM TENANCY CONTRACT
As the landlord, you have to make a choice first. Are you interested in renting out your property in Dubai for a few months or a longer term? Both approaches have their advantages. For instance, if your apartment or villa is close to a tourist attraction, short term deals are beneficial. You can charge higher rates without worrying about rental controls. However, you will have to register with Dubai’s Department of Tourism and Commerce Marketing before doing this.
Regardless of the contract duration you choose, keeping the occupancy rate high is essential. This can be cumbersome for some. But you can always hire a property management company to do all the work for you for a price.
On the flip side, long-term tenancy brings a stable stream of income without having to put in as much work. But remember that you are giving away some percentage of money to gain stability.
GETTING YOUR PROPERTY READY
Your property might likely need a bit of a quick makeover before you put it on the rental market. Whether it’s something functional like plumbing, electrical work or even something to make the place visually appealing, it makes sense to get it done before starting the renting process. If you’re not sure about the current trends, hire one of the best interior design companies in Dubai to deal with the process.
GETTING A COMPARATIVE MARKET ANALYSIS
The key to success as a rental property investor is assessing the right value of properties, understanding market conditions and putting up the best price. And a Comparative Market Analysis or CMA helps you get a good idea of what to ask for as rent for your property. This can be easily done via real estate agencies in Dubai or you can do your research online.
Each property has unique attributes that can increase or decrease its value. By putting too high a price, you might turn off many potential renters and the delay will cost you money. Or you can lose a fair chunk of income by agreeing to a lower price.
Whether you are renting out an apartment or a villa in Dubai, CMA can be of great help.
SEEK PROFESSIONAL SERVICES
You can rent out the property on your own by using popular real estate portals like Bayut. There are no restrictions on landlords trying to make it happen without professional support. However, with the expertise required, the documentation process and the amount of time needed, it makes sense to seek professional help.
You can always hire a lease agent or broker who can help you through the process. Or sign a contract with a reputable real estate agency.
Alternatively, you can sign the deal with a property management company that offers services like rent collection, tenant background checks, periodic maintenance and general support. If you have multiple properties or don’t have the time to manage things on your own, property management companies can be really helpful.
Every landlord must sign a RERA listing form when seeking professional help to rent out the property. For the permit, you need the Title Deed, a copy of your passport and a signed listing agreement.
When renting out your property in Dubai make sure you get all the documentation right. A broker or a real estate agent can make your life simpler.
MARKET YOUR PROPERTY
When you are renting out a property in Dubai, promoting and marketing your investment does require some effort and monetary expense on your part. For instance, professional photos and HD videos of apartments and villas are likely to grab more eyeballs than a plain advert with a random picture taken from your phone.
Similarly, you should facilitate the potential renter during viewings and be flexible with your scheduling. Needless to say, you have to keep your property in top shape throughout the duration.
DOING YOUR RESEARCH
When there is a potential tenant, it’s always beneficial to do your research. For instance, you can get a credit and background check done. Similarly, you can request also a Certificate of Good Conduct. Some landlords prefer talking to the person’s previous landlord to ensure they won’t create trouble. Checking out a person’s public social media profiles can also help.
THE TENANCY CONTRACT
If all seems right, it is time to sign on the dotted line. Generally, if you are using a real estate company they use a RERA Unified Tenancy Contract. Once both parties sign the papers, apply for an Ejari certificate. This is one most important steps when renting out your property in Dubai.
FREQUENTLY ASKED QUESTIONS
HOW IS RENT PAID IN DUBAI?
Rental payments are usually made via cheques. The number of cheques will depend upon what is agreed between the landlord and the tenant. You can read more on our blog about paying rent in Dubai.
WHAT DOCUMENTS SHOULD I ASK FOR FROM THE TENANT?
Ask for their valid UAE visa and passport copy. If the tenant’s visa is still under process, you can ask for a letter from their employer.
CAN MY LANDLORD RE-LET MT APARTMENT/VILLA AFTER EVICTING ME?
This depends on the reason given at the time of eviction.
- If the reason given for eviction is selling the property, moving in himself/herself or next of kin of first degree, the landlord cannot rent it again for at least two years.
- A landlord cannot evict a tenant to then re-let the property to someone else for a higher rent. If they do this, a penalty will be imposed (Unless the previous tenant signs an NOC).
The process to rent out your property in Dubai is fairly straightforward. RERA laws have been simplified to make it a hassle-free experience. Tentants can get an estimate of their annual rent by using the RERA Dubai calculator. Plus, many professional service providers can deal with all the finer details. One can safely say that renting out your property in Dubai has never been easier.
If you are planning to sell your house or apartment, read our blog about selling property in Dubai.
Subscribe to MyBayut to learn more about the UAE real estate market.
