The boom in Dubai’s real estate market increases the demand for long-term and short-term rentals. As a property owner in Dubai, maximising returns on investments by converting your property into a rental unit is one of the popular investment ideas. Let’s explore some tips to increase Dubai rental property income.
Tips to Maximise Your Rental Property Income in Dubai
Dubai is a global hub for tourism and business, creating numerous opportunities for property owners and investors to capitalize on rental properties. Here’s how you can enhance your Dubai rental property income:
- Make your property appealing to tenants
- Conduct market research
- Know the legal requirements for property letting
- Maximise your annual income
Market Research
Analyze annual ROIs and rent prices for insights on maximising your Dubai rental property income. Furthermore, you should carry out effective market research and analyse Dubai property market trends to better grasp how valuable your property is.
Apartments
To give you a better idea, the Q1 2024 rental market trends for apartments revealed that Dubai Marina, Jumeirah Village Circle, Business Bay, and Downtown Dubai remain desirable locations.
Here’s a better overview of the annual ROIs and average rent prices if you are to turn your property into a rental unit.
| Dubai Locations | One-Bedroom Apartment’s Annual Rent | Two-Bedroom Apartment’s Annual Rent | Three-Bedroom Apartment’s Annual Rent | Return On Investment (ROI) |
| Jumeirah Village Circle | AED 75,000 | AED 110,000 | AED 143,000 | 7.8% (one-bed) 7.4% (two-bed) 6.4% (three-bed) |
| Dubai Marina | AED 110,000 | AED 174,000 | AED 260,000 | 6.8% (one-bed) 6.5% (two-bed) 6.3% (three-bed) |
| Business Bay | AED 105,000 | AED 150,000 | AED 230,000 | 6.2% (one-bed) 5.5% (two-bed) 5.8% (three-bed) |
Villas
Converting a villa into a rental unit can be a profitable investment. Proprietary data from Market Watch of Q1 2024 shows that the Dubai Hills Estate, Damac Hills 2, and Dubailand emerged as top choices for renters.
A property owner should know the rents and ROIs for desirable locations, as showcased here.
| Dubai Locations | Three-Bedroom Villa’s Annual Rent | Four-Bedroom Villa’s Annual Rent | Five-Bedroom Villa’s Annual Rent | Return On Investment (ROI) |
| Dubai Hills Estate | AED 328,000 | AED 433,000 | AED 816,000 | 5.2 % (three-bed) 5.4% (four-bed) 3% (five-bed) |
| Damac Hills 2 | AED 100,000 | AED 112,500 | AED 140,000 | 6.7% (three-bed) 6.2% (four-bed) 4.9% (five-bed) |
| Dubailand | AED 155,000 | AED 210,000 | AED 350,000 | 6.2% (three-bed) 6.5% (four-bed) 5% (five-bed) |
Maintain Your Property and Improve Its Appeal
Regular upkeep and modernisation can significantly increase your Dubai rental property income. This is because a well-maintained property attracts potential tenants better than a worn-down one. Here are some tips to upkeep your building:
- Conduct regular inspections to identify maintenance issues.
- Get heating and air condition servicing done on time.
- Ensure security systems are up to date.
- Modernise interiors and appliances.
- Replace flooring before renting the property.
- Maintain a clean garden to increase the overall property value.
- Use smart technology where possible.
- Hire a reliable home maintenance company in Dubai or other Emirates monthly.
Work With a Reliable Property Agent
Before putting up a property as a rental unit, partner with a reliable property agent who knows the rental market and provides good customer service. Such agents can help ensure your Dubai rental property income remains maximised. For instance, Property Finder’s Find Agent section helps property owners and tenants in the following ways:
- Offers a list of authorised real estate agents.
- Increased number of verified listings with precise information and details.
- Quicker responses to your calls, messages, and emails.
- High service quality.
Know the Legal Requirements for Renting Property
There are several legal requirements for property renting in Dubai, such as preparing a tenancy contract and legal documents required to rent a property. Here is the list of documents required:
- Passport copy for non-UAE residents
- Emirates ID
- Security deposit cheque, for confirmation
- Residence visa copy
Rent Your Property for Short-Term
As Dubai is a thriving tourist hub, holiday homes are becoming popular. Investors and owners can list their properties as vacation homes and offer short-term rentals in Dubai. It offers additional income due to higher rent, and tax benefits are included.
A short-term rental contract monitored by the Department of Tourism and Commerce Marketing (DTCM) is signed after obtaining a permit that legalises a property to be rented on a short-term basis. To apply for a permit, here is what you need to do:
- Register with DTCM as a Holiday Home Operator.
- Upload a copy of the Emirates ID and commercial licence.
- Fulfil registration fees.
- Upload the signed Emirates ID of the landlord, a recent DEWA bill and a signed letter from your property manager.
FAQs
Follow these tips to rent out your property faster in Dubai:
– Understand laws set by the Dubai Land Department.
– Research the best areas to rent out the property.
– Understand the rental payments.
– Decide on whether you want to list as a short-term or long-term rental.
– Find a reliable agent.
– Get a property valuation done.
To effectively advertise your rental property in Dubai, follow these steps:
– Highlight key features of your property.
– Research and include information about nearby services, facilities, and attractions.
– Keep the property clean and well-maintained.
– Advertise on online portals, social media, and through local agencies.
That concludes the important strategies you can implement to optimize your Dubai rental property income and ensure a successful rental venture.
For more on renting and buying property in the UAE, keep reading Property Finder blogs.
