Ensure High Tenancy Rates: A Guide for Property Owners In Dubai

With the Dubai economy once again experiencing wholesale growth, the prospects of generating and maintaining high tenancy rates among residential properties is increasing.

 

Still, this is only providing the opportunity of increasing tenancy rates and does not ensure a higher tenancy rate. To increase and maintain high tenancy rates, it requires a well-developed relationship between property owners, the property management team, and even the tenants themselves. A well-developed relationship is one in which value is created at all stages and is recognized by all parties to the relationship. Often, the weight of this relationship falls to the project management team to ensure that value is generated and functions in a bidirectional fashion.

Property Management: The Critical Link 

An experienced and qualified property management team functions as a critical link between the tenants and the property owners. Tenants gravitate towards properties that offer value and it is therefore the responsibility of the project management team to maintain that value in order to ensure higher rates and thus a return of value to the property owners. This link is especially vital when the market conditions enter a highly competitive phase such as the one currently being experienced in the United Arab Emirates. Having a property management team that understands the nature of said link can make the difference between high tenancy rates and rates that are below market expectations.

 Maintaining Value For All Partners

Maintaining value for all partners, thus ensuring high tenancy rates, are accomplished by the property management team exercising such services as:

  • Engaging Marketing and Expert Leasing Practices
  • Prompt and Responsive Tenant Management
  • Accurate Document Discipline
  • Precise Reporting
  • Financial Administration with Budget Control
  • Maintaining Corporate Social Responsibility Actions
  • Excellent Facilities Management

It is these services and their related components that ensure that value is bidirectional between the tenants and property owners. It is this value that attracts and retains tenants and therefore ensures high tenancy rates. This generated value is especially important in areas like Dubai, that is seeing a resurgence of growth, and thus the competition for tenancy rates are also experiencing a corresponding rise.

For developers and property owners, engaging the right property management team is imperative to gain and maintain high tenancy rates. For not only the sake of bidirectional value creation, but for the element of trust necessary for this value to even exist. There are property management services that offer template services, but these are not tailored to individual properties and are less efficient at maintaining and generating a well-developed relationship between all parties. In highly competitive marketplaces such as the UAE,  Dubai in specific, a cookie cutter approach to property management will not generate value to its full potential. A properly experienced and knowledgeable property management team, that takes a tailored approach to individual clients and properties, are the best way to achieve high tenancy rates, maintain them, and ensure that value for all partners are flowing correctly.

 

Choosing the Right Agency Service for your Needs

Finding the ideal real estate property ~ whether that’s a commercial building, a villa, or apartment tower, requires more than the ability to finance the property. You need to be in sync with an exceptional agency service that understands your goals. Here’s how choosing the right agency service can help you:

Commercial Buildings

For people with commercial buildings seeking property management services in the United Arab Emirates, it’s important to engage with a real estate company in Dubai that has experience in the region. A great facility management team does more than just take care of daily maintenance problems. You want someone who has an eye on continuous improvement and making tenants happy while building your bottom line. A top-line team will have experience in energy management, build-outs, asset life cyle, maintenance, and cleaning. You need your tenant problems handled in a timely manner and your vacancy rate at zero.

Make sure whatever real estate company in Dubai you contract with has a proper license. The head of the Dubai Real Estate Regulatory Agency warns that some unscrupulous companies are doing business in the city, resulting in headaches for commercial property owners. Licensed property management companies are required to submit a bond of 5 million Dirhams. Unlicensed property management agents have been collecting rent and not passing the funds on to the property owners.

It’s also important to look for a real estate company in Dubai that is familiar with your type of building. Property management needs for an office building are much different than a hospital or restaurant. Go with a firm that understands your special needs.

Villas

Modern villas make popular rentals in Dubai. They’re a good alternative to a hotel for a short vacation, and also make excellent monthly rentals for corporations who need short-term executive housing. Villas can be one or two-stories and share a connecting wall with another unit. They usually have a small courtyard and either a small garage or covered parking space. Because of the transient nature of villa rentals, it’s important to utilize a real estate company in Dubai that knows how to attract customers to keep the vacancy rate low. Good villa property management companies have experience in marketing, locating tenants, and creating iron-clad rental agreements.

Most villa property managers are happy to greet your tenants upon their arrival, collect rent and provide an extensive property inspection upon the tenant leaving. Managers will also take care of all maintenance, arrange photo shoots as necessary and list your villa on websites that attract the most attention. You need to pay a fee for all this service, of course, but it’s a small price to pay for sitting back and watching the monthly checks roll in.

Before signing up with a property manager for your Dubai villa, do a little homework. Get some referrals and follow up with those people. Also check out some of the other listings of the company you’re considering. Do they have quality photos and appealing text? Before you sign on the dotted line, make sure you examine the management agreement and understand the language completely.

Apartment Towers

As the home of the tallest building in the world, Dubai is no stranger to skyscrapers and apartment towers that reach into the sky. Providing a vertical footprint helps make living in this modern city affordable, with rents comparable to smaller cities in America. Because of the large amount of people living in a relatively small area, it’s important to have a property management team that knows how to handle people and the issues that inevitably arise.

A real estate company in Dubai will only be a good apartment tower property manager if it has experience in a number of areas, including marketing, tenant relations, health and safety, financial control, document control, and facility maintenance. It’s essential that a property management team that runs an apartment tower employ people with excellent listening skills in order to understand what the tenants want and what you need to run your building. The best property managers are able weigh tenant problems against bottom line issues and provide a happy and healthy living environment.

Attracting the right kind of tenant starts by running a well-managed property. This obviously includes things like landscaping, maintenance, and overall cleanliness, but also carries over into record keeping, handling late payments and conducting regular inspections. Make sure that whatever real estate company in Dubai you contract with to run your apartment building has no problem responding to noise complaints or interceding in other tenant on tenant issues. By maintaining peace and happiness in the apartment complex, your building’s reputation will rise and so will the monthly amount of your rents.