On an online forum, a tenant in Dubai recounted how she had gone on a month-long vacation overseas. When she returned, mold had overrun her home and subsequently, she was in dispute with her landlord over who was responsible for mold removal.
Now, imagine you were in the landlord’s shoes. Legally, you’d be responsible for property maintenance. That said, the problem could have been avoided had the tenant only set the timer on the air-conditioner so it would kick in for a short time daily.
It’s quite the headache, isn’t it? This is why property owners work with Betterhomes Dubai or other reputable property management companies. A property manager can operate your rental property, so you won’t have to deal with such issues.
What is Property Management?
Property management is a real estate service for landlords or rental property owners who have no time or desire to play landlord. Property managers oversee and execute the various operational aspects of rental properties. These can be single units, multiple units, or even an entire building. They get a cut of the lease value in exchange for their services.
Essentially, third-party property management companies undertake the responsibilities of the landlord. In Dubai, they and property owners enter into an EJARI-registered property management contract to formalize this arrangement.
Responsibilities of a Property Manager
The real estate market of UAE has endless possibilities of growth and property managers are highly in demand here. The specific service inclusions depend on the scope of work defined in the property management agreement. The following are some of the most common responsibilities of property managers.
Ensuring Competitive Advantage
Property management companies conduct a comparative market analysis to determine prevailing rental and purchase rates for similar properties. This maximizes potential rental income while ensuring the property remains competitive and desirable to potential tenants.
Finding Tenants
Property managers can market vacant properties to attract tenant applicants. They may advertise on multiple channels, stage properties, host open houses, and show properties to interested individuals.
Screening Tenants
Property management companies conduct due diligence to screen potential tenants. They perform background checks, verifying tenants are who they say they are and that they can keep up rent payments.
Lease Administration
Property managers negotiate lease terms, ensure compliance with lease agreements, and update lease contracts as necessary. This is a crucial aspect of managing a property and is a vital contributor to the benefit of the owner.
Tenant Management and Coordination
Property management companies are the first point of contact, responsible for ensuring tenant satisfaction and providing excellent tenant experience. Tenants call them when they have complaints, questions, or maintenance requests. They also handle tenant turnovers.
Maintenance and Repairs
Whether it is the light bulbs burn out, hinges become loose, appliances stop working, toilets get blocked, or pipes bursting, they take care of it all. Landlords are primarily responsible for repairs and replacements, and they must regularly maintain their property to minimize the frequency of emergency repairs.
Property Inspections
Property managers inspect rental properties during check-ins, check-outs, and lease renewals. They ensure your property is in a good, livable condition, and they document inspection results, making sure to precisely log the exact condition of the property before tenant take-over. This minimizes potential security deposit refund disagreements.
Financial Administration
Property management companies handle budgeting and financial management for rental properties. They collect security deposits, rent, manage expenses, and prepare financial reports.
Regulatory and Legal Compliance
Dubai is particularly efficient and effective at enforcing contracts, so all lease agreements must be in good order. A property management company will know to include all critical clauses and provisions. They also have expertise in relevant local ordinances. By working with them, property owners can prevent and mitigate compliance risks.
The Benefits of Property Management
Are you a property owner in Dubai? Why is working with a property management company recommended? Take a look at the following benefits of entrusting your real estate investment to a third-party property management firm.
High-Quality Tenants
The refined and systematic screening processes of property management companies mean a greater likelihood of getting good tenants. Good tenants are more likely to lease long-term, pay rent on time, carefully use your property, minimize property wear and tear, and cause fewer problems.
Minimized Legal and Regulatory Compliance Risks
Working with property management companies can be an excellent way to ensure you don’t run afoul of the law and violate tenancy and other relevant regulations in Dubai. They will guide you so you can fulfill all your legal obligations as a rental property owner.
Outsourcing property management can also be an excellent risk transfer strategy. For a bigger share of the lease value, your property management partner can assume more of the legal and regulatory compliance risks related to leasing out property in Dubai.
Efficient Rent Collection
Property management companies have systems and processes for rent collection and tenant eviction. They’ll handle everything according to the law and established standard operating procedures.
Higher Property Value
A property management firm can help maintain property value. The regular property checks and inspections, annual maintenance contracts they will enforce on your behalf, and careful vetting of tenants can help ensure minimal property wear and tear. Property management companies also actively try to maintain or enhance property values. After all, the higher the rent they can charge, the bigger their share of the lease revenue becomes.
Shorter Vacancy Periods
Property managers are skilled in staging properties and setting optimal rent rates, which means shorter vacancy periods. This is an imperative pillar of managing property that shouldn’t be ignored.
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To Conclude
If you have a property to lease out in Dubai, consider leaving it in the care of a property management company and paying them a small share of the lease value. It’s very convenient, especially if you have other things to do.
Property management companies take over the property maintenance responsibilities of property owners. They choose maintenance and emergency repair service providers, arrange annual maintenance contracts, and do what’s sufficient and necessary to ensure liveability and preserve the value of rental properties. They are deeply knowledgeable about Dubai tenancy, permitting, safety, and housing regulations.
Even if they take a share of your rental income, the right property management provider could even increase your net rental profit. Property management companies in charge of entire buildings also typically conduct fire audits and building inspections quarterly, plus annual detailed inspections. So, having them by your side is paramount.
