Renting out a property should always be a well-informed decision. If you decided to rent out your property in Dubai, consider financial, legislative, and management aspects.
Of course, any lease involves financial aspects. And this is the first you would like to think about. Here is the list of most important financial considerations:
- Rental price
- Rent payment method
The rental price is important for your income. If you overprice, your unit may stay vacant for a long time. If you underprice, your income will be lower than it can be – lost profit. Typically, in Dubai, checks are the common tool for rent payment. So, think about whether it is suitable for you and how many checks you set – one, two, or more per year. Note, check (cheque) bounce in the UAE is not unheard of. But in Dubai, the authorities make a drawer responsible for his bounced checks. Besides, from 2022, you can ask for bank guarantees and, thus, hedge your risks.
What is the new rule of check bounce?
With the new rule change, checks can be cleared on a Sunday or a holiday too. The customers must keep in mind that they need to keep a minimum balance in their bank account at all times. If they fail to do so, the check may bounce and they will have to pay a fine or penalty.
While financial aspects are what you would like to think about, legislative aspects are what you must check. In Dubai, rental legislation is highly elaborate to secure both sides. Legal documents to check here are as follows:
- Law No. 26 of 2007
- Law No. 33 of 2008
- Decree No. 43 of 2013
The first two regulate general tenancy relationships, while the last one regulates the rental increase in Dubai.
Managing your rental property is not only finding a tenant, signing a tenancy agreement, and collecting rent. It also includes the following:
- Registering the contract with Ejari
- Property maintenance and reacting to tenants’ maintenance requests
- And even resolving rental disputes, if any
In general, you have two management options – to do it on your own or hire a property management company. When you choose the latter, you have to pay money for their services but get rid of headaches renting out a property may involve.
Story by Aleks Souschuk