If you are planning to buy a property and become a landlord in Dubai, you are making a very important economic decision. If you want to invest in apartments, the Emaar Beachfront apartments or Bluewaters Residences Dubai are a great choice. On the other hand, the Emaar Arabian ranches will be a good option if you intend to invest in villas and townhouses.
Due to the expected events in the city, the market is experiencing a lot of changes such as increased rental returns which is approximately 7% on average. In other cities such as London and Paris, rental yields are very low.
Below are some things you need to know in advance before becoming a landlord.
After purchasing a property, the first thing you should do is to find a reputable real estate agent who is registered with the Dubai Land Department. The agent should also have a valid ORN and RERA number.
Since the agents are well conversant with the market, they will help you access the best rates and market your property at competitive prices. Also, they are at a better position to research about the area where the property is located and find a suitable tenant. In addition, a reliable agent should help you through with the process of checking tenant backgrounds.
A successful landlord should be willing to respect all the laws pertaining to property in Dubai. For instance, after getting a suitable tenant, you should draw a contract.
The contract should be registered through Ejari. This is an online rental regulation system established by the Real Estate Regulatory Authority (RERA). Ejari will help to keep the contract for the duration of the tenancy. This way, the contract cannot be altered without a 90-day notice as established in law.
As a landlord, you are expected to always keep the property in safe condition for the tenant. Also, you should ensure the property is well maintained.
You are eligible to increase the rent during the tenancy. However, you must notify the tenant 90 days in advance and check in with RERA. The calculation of the rental increment should be declared valid by the RERA rental calculator.
Terminating the tenancy should be done under very specific circumstances. For instance, you must notify your tenant one year in advance. In addition, you should notify the courts as well.
Experts project that the real estate industry will continue to thrive and improve. However, before you invest, it is advisable to do thorough research to get a property that meets your needs.