Things your Property Manager Should Be Doing, But Probably Isn’t.

You may not realize that property management in Dubai is a lot like property management in other places in the world, but there are substantial similarities wherever you may own.

While the Dubai market is a unique place, the fundamental aspects of property management in Dubai are much like those of any rental market. While some property managers seek only to draw a paycheck from your investment, responsible managers have a higher ethical and professional standard that they follow.

Staying Up to Date on Laws

The nature of any growing city is that laws are subject to change on a regular basis, and property management in Dubai is no exception to this rule. As a modern city that is also Islamic, there is a combination of the more traditional and the extremely modern that can be confusing to the uninitiated. For a property manager operating in this area, a lot of information is needed on both official protocols and social customs that could impact being able to lease the property effectively. Any breach in these types of protocols could be the difference between successful renting and having the property go vacant, or worse incurring substantial fees from the local authorities.

Naturally, being a reasonably new market also means that the laws are in a constant state of change. Rather like New York City, which is an established but highly competitive market, property management in Dubai is partially a matter of staying on top of frequent updates to the laws. If your property manager is not constantly reviewing and making corrections to their business practices based on these law changes, this is not effective property management in Dubai.

Acting as a Responsible Steward of Your Money

You have worked hard for your money, and the entire reason you invest in a growth market like Dubai is because you want to grow your wealth. You do not want to purchase a job, and you do not want to sink your money into a losing proposition. Responsible property management in Dubai knows this, and will take pains to preserve and grow your wealth. A responsible property management company will guard your wealth from undue taxes, ensure your deductions are in order, and will make sure you have the best possible tenants as frequently as possible. With a responsible financial steward in place, your property will be more successful.

Communicating Regularly

Regular communications between tenants and property managers are important. By the same token, it is also important that your property manager be communicating with you on a regular basis. These communications should inform you of anything that is happening in and around the property, and you should also be kept informed of anything that might affect your property. Infrastructure changes, new tenants, tenants who have caused damage and new construction nearby can all impact your investment, and effective property management in Dubai both recognizes this fact and works with it to maintain your investment.

Advocating for You

Your interests in Dubai are important to your property and to growing your wealth, and a good property manager knows this. When there is an issue such as collecting rent, dealing with arrears and marketing your property to the best extent possible, your property management in Dubai should be handling these issues every day. The better your property manager advocates for your interest, the better your investment will be protected and the more wealth you will be able to grow as a result.

Issuing Proper Reports

Reports consist of the financial aspect and the physical aspect. Financially, you should be issued at least a monthly report detailing rents received, maintenance amounts charged, utilities, taxes and fees paid, and any other financial aspects that might need to be covered. Physically, anything that involves the property should be recorded and sent to you. Far too many property investors have properties they think are in good condition but that have been allowed to deteriorate considerably because of indifferent management. Property management in Dubai depends on good management to bring in foreign investment by providing superior returns, and a major part of this is delivering reports about the physical condition of the property. Pictures should always be a part of these reports.

Dealing With Professionals

Professionals handle many aspects of a rental property. When an eviction or collection process is needed, your manager must work with an attorney. When there are tax documents to prepare, often quarterly, an accountant is necessary. Your property manager should have this network in place and work with them to make sure you are getting the best return you can while paying the least in taxes and having the lowest level of liability possible.

Good property management in Dubai does a lot for your best interests, while bad property management just limits its own liability.

Is Owners Association Management Right for your Property?

Property development and management can be challenging in the United Arab Emirates and Dubai in specific. Over the last several decades, the UAE and, more specifically, Dubai have experienced explosive growth across a variety of sectors including the real estate sector. As such the government in the UAE has undertaken changes to help manage this explosive growth and the consequences therein. This has lead to an ever evolving sea of regulatory changes. In addition to these changes, the every changing demands of the real estate market place have placed a strain on developers who manage their own properties. This is especially true when navigating the challenges relating to Owners Association Management.

Regulatory Framework

Since 2007, the real estate market in the UAE underwent some changes across the board, to help provide stability and reliability for developers to successfully develop, promote and manage their properties in accordance to the laws and established practices in the UAE. This included the creation of the RERA, the Real Estate Regulatory Agency. The RERA has provided the necessary framework for regulating companies, brokers and Owner Associations. Under the RERA and the existing Strata Law, the burden on developers to comply with the regulations, in addition to managing their non-residential properties, has increased. While this regulatory framework has increased the confidence and stability of the overall real estate market, for those who consistently deal with the various agencies, associations, and any contractual parties, this has created a challenge to keep all manner of compliance up to date.

Owners Associations

Beyond the regulatory environment, Owner associations add a layer of contact and control to the property. They provide an essential service to the tenants and clients within the regulatory boundaries and framework of the Strata Law and subsequent regulations provided by the RERA. As such, this layer becomes a management opportunity to engage all stakeholders to the betterment of the property and thus producing a higher return on the investment. However, this creates a setting where more resources are employed to contend directly with said layer and therefore removes those resources from other investment opportunities or practices.

Important Owners Association Management

By engaging the Owner Association layer with a corresponding layer of Owner Association Management, diverted resource allotment, a demanding regulatory framework and the trials and tribulations of dealing with Owner Associations can be mitigated to the point of ensuring high returns while improving satisfaction among the participants. The advantages of utilizing Owner Association Management, via a firm experienced in said management are:

  • Centralized Office Management
  • Insurance Practices and Compliance Regimes
  • Meeting HOA Participation Requirements
  • Direct and Effective Property Management
  • All Regulatory Compliance Updates
  • Efficient Monies Management of Credit/Debt Systems
  • And More

It is important to recognize that any property with existing or future Owner Association requirements can benefit by applying a well layered, Owners Association Management. By taking advantage of said layer, issues, concerns and participation elements are satisfied to the betterment of all concerned.

All of the aforementioned concerns and resolutions are applicable to the real estate and property environment in the UAE and Dubai, in specific. Given the unique nature of this environment and the unparalleled opportunities for property owners and property investors, it seems only logical to take the added step of including Owners Association Management. While there are Owners Association Management companies, few have the experience and the full service capability as Kaizen. Their approach to providing targeted and strategic services, tailored to the client, has allowed this company the opportunity to navigate the pitfalls and successes of the real estate market and respond with stellar results. As the real estate climate in the UAE continues to return to excellent growth patterns, Kaizen can help any developer, or property owner or property investor get the best return and the best long term results.