As a property owner, you would like to optimize your rental yield. But there are a few considerations to make. Would you prefer to let your property out for short-term or long-term rentals?
In the more touristic locations, short-term rentals are typically known to produce higher returns. However, to be able to do so, you will need to register with the Department of Tourism and Commerce Marketing (DTCM) of Dubai for that.
Long-term rentals offer lower but more stable returns. Renting out needs nothing more than duly listing your property to put it on the market.
Whichever option you choose, it is important to appoint a credible real estate agency and sign a listing agreement with one of their property consultants. The property consultant you appoint will be able to guide you through the process, get professional photos and videos shot, list your property, advertise it and show it to prospective tenants.
Before getting photos and videos shot, make sure your property is thoroughly cleaned and all maintenance work is up-to-date. If you are renting out a furnished apartment, please make sure the furniture is in clean and in good condition for media shoots and viewings.
Remember: first impressions is ever so important. When your property is advertised for sale, the images and videos should be appealing. When a prospective tenant visits the property for a viewing, that first impression is what they will retain and compare with other properties they may view.
Every property you list will need a permit from Dubai Land Department (DLD) which allows you to advertise your property. To obtain this permit, you will need to provide copies of the following documents to DLD:
Your property consultant will be able to help you with this. Once the permit is obtained, your property consultant will legally list your property on various portals and receive rental enquiries.
Once you agree on the rent and payment terms with a tenant, both parties will need to sign a tenancy contract. This document will contain details of the property, the agreed rent, the amount of the security deposit and any other terms pertaining to responsibilities of both parties with regard to maintenance and repairs, and any other terms that are agree upon.
By law, a tenancy contract is only valid for a maximum of one year. For long-term rentals, it should be renewed annually.
There is a standard format for this, known as the RERA Unified Tenancy Contract. Your real estate agency can provide you with this. They will take care of all the administration work on your behalf. They will also collect the security deposit and rent cheques from the tenant.
Ejari is the official registration of your tenancy contract with the Real Estate Regulatory Agency (RERA). By law, it is the landlord who is supposed to arrange for the Ejari; usually through the real estate agency. However, in practice it is typically the tenant who usually ends up doing.
The annual renewal of Ejari is always the tenant’s responsibility.
Your real estate agency will collect all rental payments on your behalf and submit it to you.
While your real estate agency will be able to handle most communication on your behalf, you should ensure you are available to resolve any issues the tenant may have; for example, with regard to any major maintenance issues. Some things may still require your approval or action.
Rent is the most significant– the largest percentage of your income – investment into your living space. The starting point is the key question: how much do I want to spend on my living space? There is, of course, no right or wrong answer. It varies for each individual based on lifestyle, income and so on. Knowing your budget will help you narrow down your property search.
Depending on your preferences and requirements, you should choose a location that has amenities that you need within close proximity, is well connected to ease your journey to places you frequently visit and is convenient for you to travel to and from work.
Property portals offer a snapshot of the various locations across the city. But the best way to know whether or not any given location is suitable for you is to visit the community.
Appointing a real estate agent and discussing your requirements with them will save you a lot of time. As your property consultant, they will be able to make recommendations and find you suitable properties.
Going for a viewing will give you a much better idea of how the property actually looks. Sometimes, properties may look nice in pictures but may not be what you were hoping for as a home; even as a tenant. Being there in person will also give you the opportunity to ensure everything is as it should be, and allow you to identify any issues that need to be addressed before you move in.
Viewing a property will also give you a better understanding of the community and location.
Once you find the property you like, make sure you agree on the payment terms with the landlord. This could be by way of the annual rent, number of installments, terms and conditions of maintenance and so on.
Commission and security deposit are discussions you should have with your property consultant; not with the landlord.
Once you agree on the rent and payment terms with the landlord, both parties will need to sign a tenancy contract. It will contain details of the property, the agreed rent, the amount of the security deposit and any other terms pertaining to responsibilities of both parties with regard to maintenance and repairs, and any other terms that are agree upon.
By law, a tenancy contract is only valid for a maximum of one year. For long-term rentals, it should be renewed annually.
There is a standard format for this, known as the RERA Unified Tenancy Contract. Your property consultant can provide you with this. The real estate agency will take care of all the administration work on your behalf and submit documents and payments to the landlord.
Ejari is the official registration of your tenancy contract with the Real Estate Regulatory Agency (RERA). By law, it is the landlord who is supposed to arrange for the Ejari; usually through the real estate agency. However, in practice it is typically the tenant who usually ends up doing.
The annual renewal of Ejari is always the tenant’s responsibility.
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TRPE Real Estate is a company registered in Dubai, United Arab Emirates (License No. 999314) located at Office No 1001, Ascott Park Place, Sheikh Zayed Road, Dubai. We are regulated by the Real Estate Regulatory Agency (RERA) under office number 28357.
