The Dubai real estate market is an opportunity galore to the landlords, and it has its own challenges too. It is easy to rent out your property but to find a tenant who will rent out your property within a short time and who is a good tenant is where it becomes tricky. This is why a smart plan is important.
This guide combines two aspects of the rental process that are crucial whether you are a first-time property renter or an experienced one: lease your property the right way and select the right tenant. Considering them both, you will be able to facilitate the entire process, making it easier, safer, and more enjoyable.
1. Attracting the Right Tenants by Knowing Your Market
Dubai rental market comprises various categories of individuals seeking homes. There are expats who come here to work, young people who wish to lead a modern life and families who require a safe and comfortable environment to live in.
- Expats usually desire houses that are close to their offices or international schools.
- Young people seek the accommodation with the latest facilities and convenient access to the metro.
- Families desire to have bigger houses in secure neighborhoods with parks and schools.
What to do: Consider who you would like to rent to and point out the characteristics of your property that would suit them. It will enable you to get tenants quicker and increase their appeal to them.
2. Be Current on Market Rental Rates
It is extremely important to set the proper rent price. You cannot ask too much and people will not be interested. However, when you request too little, you may lose money.
Pricing: How to price it right:
- Check the ads of similar properties on the websites such as Bayut, Property Finder, and Dubizzle.
- The official rental rates can be checked on the Dubai Land Department (DLD) and the RERA rental index.
- Consider the season of year-rent rates may be higher when there is a peak season in school admissions or events such as Expo.
This will make you competitive and you will have the right tenants.
3. Legal Compliance and Compulsory Ejari Registration
Dubai has a well defined law of renting to both the landlords and tenants. Ejari registration is one such crucial rule. This formalizes the rental agreement and is necessary in all rental contracts in Dubai.
Other legal actions you have to take:
- Ensure that your property is in line with RERA regulations.
- Make a clear rental agreement containing all the important points.
- Be straightforward on what the tenant should anticipate and what you as the landlord should do.
These rules prevent issues in the future and make everything legitimate and just..
4. Show Your Property in the Best Light
Good tenants will pay more attention to a clean and well-maintained house- and you may even be able to charge higher rent.
This is what you should do:
- Have the house cleaned.
- Decorate the walls and repair everything that is damaged.
- Replace the light or handles to make the place modern.
Pictures Matter:
- Take professional photos highlighting the space, illumination, and key details.
- Include a virtual tour that allows individuals in other cities or countries to view the property with ease online.
- Property presentation can give your property an edge and enable you to rent your property within a shorter time.
5. Strategic Marketing: Go To Where Your Tenants Are
It is not enough to just post your property on the internet. You should be on the right websites and have a clever strategy to contact the right tenants.
What to do with your property:
- Utilize the popular real estate websites such as Bayut, Property Finder, and Dubizzle.
- Post on Instagram and Facebook with pleasant pictures or advertisements.
- LinkedIn is the best tool to use when you need to reach the working population or employees of a company.
Helpful Tip:
It is not a list of features. Write about how it is to live there, mention some cafes, parks, metro stations or general atmosphere of the place.
Word of mouth is also a good idea to try:
Inform your friends, relatives or colleagues that the property is on sale. It is also possible to reach real estate agents or relocation specialists who would assist in locating tenants.
6. Vet Screen Tenants: No Headache in the Future
Rent payment delays, damages to their property, or even litigation can be the result of making the wrong choice of a tenant. This is why you should ensure that you inspect everything before renting out your property.
This is a basic checklist to aid you in selecting the suitable tenant:
- Job and Income
- Verify work and income of the tenant.
- It is a good rule that the monthly income of the tenant should be not less than 3 times the rent.
- Request such documents as a letter of offer, salary slip, or employment letter.
Enquire about Credit Score
- Request the tenant to allow you to access their credit report with Al Etihad Credit Bureau (AECB).
- A score of over 700 is awesome, but a score under 600 is something you need to be cautious about.
- A low score could imply that the tenant cannot pay bills promptly.
Behavior Check and Criminal Record
- Request a Police Clearance Certificate with the Dubai Police.
- A Rental Good Conduct Certificate can also be requested.
- Select polite, respectful, easy-to-communicate tenants.
Inquire About Occupants Number
An overcrowded unit may result in damages or an additional wear and tear. Inquire the number of occupants who will be staying there particularly in units such as studios or 1-bedroom apartments.
Ask About Pets
In case you do not allow pets, inform the tenant accordingly. When pets are permitted, put guidelines in place and perhaps require a pet deposit in case of damage.
Social Media (Optional)
Even a brief scan of the social media used publicly can tell you something about the lifestyle and habits of the tenant.
Discuss Maintenance
- Big repairs (such as AC or plumbing) are typically done by landlords.
- Tenants are able to address minor repairs (such as a burned bulb or slight leaks).
- You may specify a spending limit (e.g. AED 200-500) and state this in the rental agreement.
7. Write a Professional Lease Agreement
A well-written and clear lease agreement leaves both the landlord and the tenant free of confusion or trouble in the future. It describes the responsibilities of each side.
Worthwhile items to be included in the lease:
- Amount of rent and the time of payment
- The information about security deposits
- The duration of the lease and the regulations to renew the lease
- Who will foot the utilities bill and who will repair or maintain?
- What can happen in case a person wishes to terminate the lease prematurely and how much notice is required.
- Regulations concerning animals and the quantity of individuals that can reside in the apartment
Hint: You may seek the assistance of a legal authority to draft the agreement or use a RERA-approved lease format to ensure that everything is right and legal.
8. Establish a Good Relationship at the First Day
Leasing your property is not merely a contract. The way you treat your tenant once he or she is in also counts. An excellent relationship will result in:
- Longer tenants
- Improved management of your asset
- Positive reviews or recommendations to other people
Easy steps to establishing a good relationship
- Respond promptly in case the tenant requests repairs or assistance
- Check-up every 6 months (though you should always give notice)
- Welcome them with a note or even a little gift when they move in
- Always speak in a polite manner and listen to their issues
It pays to be nice and professional, so that renting becomes easier to you and your tenant.
9. Lease Renewal, Change or Disputes
In Dubai, when you wish to renew the rent or any aspect of the lease, you should provide a notice period of 90 days. This notice must be communicated in written form, whether by registered mail or email.
Should an issue arise, such as the tenant failing to pay the rent, or being unwilling to vacate the property at the expiration of the lease, you can:
- Seek the assistance of the Rental Dispute Settlement Centre (RDC)
- File a complaint in the right way by following the rules established by RERA
- Being aware of these steps can assist you in handling lease modifications or tenant problems in a composed and lawful manner.
Final Words
The idea of leasing your property in Dubai is not simply to get a tenant, but to get the right tenant as fast and safely as possible. Combining sensible marketing strategies with good tenant selection can help you reduce risk, limit the length of time a unit is vacant, and maximize rental income.
In a nutshell, the following are what good landlords do:
- Know their target tenant
- Price competitively
- Offer the property in a professional manner
- List on right platforms
- Screen thoroughly
- Communicate openly
- Act as per law
Now you have all the tools you need to tackle all aspects of the rental process in Dubai, including listing, lease signing, and more, with confidence. Happy leasing!