In today’s Digital world, almost anything can be managed and executed without being physically present, as everything is merely a button click away. This is especially relevant when you are a landlord or a homeowner! Yes, that’s correct. However, renting out the property while living overseas comes with a learning curve or level of difficulty. It can be challenging for expats and landlords in Dubai in the world of Real Estate.
Dubai is the “Jewel of the Middle East” for a Reason
Spoiler alert! For rental prices and annual return on investment, Dubai scored higher than places like London (7.89%) and New York (4.48%), making it the most important city in the world in the world of Real Estate (2021). Here are some things you may do to streamline the process of being a landlord in Dubai while living overseas and minimizing your mortgage payments every month:
Specialized Visas to meet certain Conditions
The 10-year general investor visa (without a sponsor)
- 60% of the mandatory AED 10 million total investment should be placed in companies other than the holiday homes company in Dubai.
- Evidence that the deposited money is not a loan.
- Maintaining an investment for at least three years is a must.
- Financial solvency for the investment of AED 10M is necessary.
- If each party invests AED 10 million, this visa may be extended to business partners.
- For a six-month term, overseas investors can get a multiple-entry permit.
The 5-year real estate investor visa (without a sponsor)
- Investors must run an ongoing project with a minimum investment of 500,000 AED.
- Investing in a property worth at least AED 5 million is necessary.
- Evidence that the money is not a loan
- You must keep the property for a minimum of three years.
Seek out Local Assistance
Local connections are essential if you want to be a landlord for short-term rental purposes in Dubai. You’ll have much less to fret about if you hire professionals and experts with understanding and experience of Dubai’s real estate. Being overseas, you will have to put in a significant amount of extra effort if you’re an expat, and all this can be hard without assistance from the community. And while business in the UAE is booming, it’s crucial to comply with local laws.
Property Managers for Renting or Leasing
To help you rent out your freestanding properties in Dubai, a leasing representative will liaise alongside you and handle a portion of the process for you. They will help you discover excellent tenants by marketing and advertising your property to prospective buyers, maybe with the help of holiday home management companies in Dubai. Furthermore, they will promote the rental property through listing on websites like Airbnb, Expedia Booking.com, etc. Some homeowners might even hire photographers to take aesthetically attractive pictures of the property for advertising it on various websites.
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It is best to Hire an Eviction Representative
Regardless of how excellent the tenants are, eviction is always a possibility. Understanding how to handle the circumstance and what to predict throughout the eviction proceedings is essential. In the case of eviction, there are three possibilities:
- a landlord-only break
- a tenant-only break
- a mutual break option
Save yourself from Rent Collection Issues
Even if you are residing overseas, there are numerous options for you to collect your rent.
- Online payments and other electronic payment methods, along with bank-to-bank transfers, can be set up in cooperation with your bank.
- You can also accept credit card payments with your iPhone or iPad using services like PayPal, Zelle Pay, or paysimple.com.
- Payment via cheque is another option, but it is somewhat more challenging as cheques need to be mailed to a friend or relative who can deposit them on your behalf.
Landlord and Property Insurance is must
Being the landlord in Dubai, you might require additional safety than what is provided by your homeowner’s insurance policy. If you’re renting out your property for a short time, you may be able to add an endorsement to your policy for a secondary dwelling. Another choice is to get a property warranty, which can assist with renovations and repair on your behalf. Many businesses provide adaptable plans that let you have repairs made after paying a modest threshold.
Create a Channel for Communication
Communication with your tenants and anyone you’ve hired to help manage your property can be more challenging if you live overseas. However, it is imperative to have a practical method of communication with one another in case of any complications, despite the time difference, and attempt to establish a set of convenient hours for all sides. Decide on the most effective way to contact each other, whether via phone, text, email, etc.
Essential Things to be taken when taking a new Tenant
- Check out all the criminal records (if any).
- Request a credit check from their country of residence.
- Social media details of the tenants.
- To ensure your peace of mind, phone a former landlord of the tenant.
- Employment verification is another important thing.
Dubai Real Estate Investment: Prices As Low As £128,000
The Dubai real estate market has a promising future, and 2022 is no exception. Now is a great time to preserve your slice of the pie by acquiring an asset property in the city and becoming a landlord in Dubai because of the incredibly positive statistics and trends and much more that is yet to come!