Is rent-to-own units a good option for property buyers in Dubai?

Rent-to-own units have gained popularity in Dubai’s real estate market as a unique option for property buyers. In this blog post, we will critically evaluate whether rent-to-own units provide a good option for property buyers in Dubai. We will explore this arrangement’s potential benefits and drawbacks, considering aspects of property management and the overall real estate market.

Rent-to-own in Dubai is a unique property scheme allowing you to lease a unit with the option to purchase. Under this arrangement, your rental payments are the unit’s down payment. Governed by an agreement between you and the developer, both parties adhere to UAE laws as if in a regular tenancy contract during the specified rental period. This option, spanning up to 20 years, requires an upfront payment of about 5% or less, eliminating the need for a mortgage. While the rent may exceed market rates, the convenience appeals to those unable to save for a traditional deposit.

For Landlords (Sellers):

Pros

  • Attracting Buyers in a Challenging Market: It helps find interested buyers, especially when facing challenges in selling the property.
  • Avoiding Double Mortgage Payments: A viable option to avoid paying a double mortgage, especially if the landlord has purchased another house.
  • Savings on Maintenance: Long-term tenants taking care of the property can lead to savings on maintenance, even if the deal doesn’t materialize.

Cons

  • Limited Flexibility in Booming Markets: In booming real estate markets, the landlord may miss out on potential higher returns as exiting the contract becomes challenging.

For Tenants (Buyers):

Pros

  • Credit Score Improvement: Provides time for tenants with low credit scores to improve or build their credit.
  • Financial Flexibility for Low-Income Individuals: A viable solution for individuals with low income and insufficient reserves.
  • Rent Credits Toward Mortgage Down Payment: A portion of the rent contributes to the mortgage down payment, offering relief to aspiring homeowners.
  • Future Homeownership without Relocation Hassles: Allows tenants to live in a home they will eventually own, avoiding the hassle of moving.

Cons

  • Maintenance Responsibility: Unlike regular tenants, rent-to-own tenants bear responsibility for maintenance and repairs, though this becomes less significant with a firm buying decision.

The two available agreements are:

Possibility to Purchase Agreement:

  • Buyer pays an ‘option fee,’ a predetermined percentage of the purchase price.
  • Grants the right to buy the property at a later date.
  • Choosing not to proceed results in the loss of the option fee.
  • It provides flexibility for the buyer to decide on property ownership.

Purchase Agreement:

  • Terms are pre-negotiated between the buyer and developer.
  • Options include a fixed purchase price or determining the price through future valuation at an agreed date.
  • Ideal for buyers to be sure about their decision to purchase.

These agreements are legally recognized by the Dubai Land Department (DLD). The DLD has introduced a dedicated rent-to-own service on its portal, ensuring the registration of a specific title deed. This initiative establishes a robust legal framework, enhancing transparency and facilitating seamless transactions within the rent-to-own system.

Affordability

  • Increases chances of home ownership in Dubai with reasonable prices.
  • Eliminates the burden of a costly initial payment.

Capital Accumulation

  • Paying rentals serves as an indirect means of capital collection in manageable installments.

Trial Period

  • It enables you to experience the unit before committing to purchase.

Simplified Criteria

  • The scheme’s criteria and procedures are more straightforward than obtaining a traditional home loan.

Thorough Understanding of Agreement

Before signing the tenancy contract, ensure a comprehensive understanding of all clauses, rules, and conditions.

Critical Points in the Agreement Include:

  1. Market Price Changes: Be aware of how the property’s price may fluctuate with market changes.
  2. Title of Deed: Ensure you have access to the title deed throughout the entire contract period.
  3. Payment and Termination Clauses: Understand the specified timeframes for payments and termination clauses.
  4. Upfront Costs: Be cautious about potentially paying a higher upfront amount compared to non-rent-to-own properties.
  5. Mortgage Eligibility Check: If you decide to purchase the property, assess your eligibility for a mortgage to facilitate the buying process.

Individualized Conditions

Payment plans vary case by case, as they are tailored to the specific agreement between the developer and buyer.

Guidelines from DLD

The Dubai Land Department (DLD) provides guidelines and associated fees for registration, financing, transfer, and cancellation of rent-to-own contracts.

Tailored Solutions

Despite DLD guidelines, the schemes developed so far are individually crafted to meet the unique requirements of each case, ensuring flexibility and customization.

  1. Agreed Property Value: Clearly state the property value the buyer and developer decided upon.
  2. Lease Time Frame: Specify the duration of the lease contract, confirmed by both parties.
  3. Title of Deed Ownership: Ensure continuous ownership of the title deed throughout the contract duration.
  4. Exit Terms: Define the terms and conditions for exiting the contract.
  5. Repayment Penalty Clause: Include a penalty clause for defaulted repayments, specifying the consequences.
  6. Refundable Down Payment Percentage: Clearly outline the percentage of the down payment (if any) to be refunded in case of contract termination.
  7. Job Loss, Missed Repayments, or Mortgage Rejection Clause: Address potential scenarios like sudden job loss, missed repayments, or mortgage rejection at the time of purchase, particularly once the lease term concludes.
  8. Property Maintenance Terms: Clearly define responsibilities for property upkeep throughout the contract duration.

For Individuals:

  • A copy of the buying contract.
  • Copy of the Emirates ID.
  • For non-residents, a copy of a valid passport.

For Sole Establishments:

  • Copy of the trade license.
  • For the license owner, a copy of the valid Emirates ID and passport.
  • Power of attorney, if available.

For Limited Liability Companies:

  • Copy of the valid trade license.
  • For the license owner, a copy of the valid Emirates ID and passport.
  • Power of attorney, if available.
  • Copy the company’s Memorandum of Association and appendices (legally translated into Arabic).
  • A copy of the shareholder certificate.

For Foreign/GCC Companies:

  • Copy of the valid trade license.
  • For the license owner, a copy of the valid Emirates ID and passport.
  • Power of attorney, if available.
  • Copy of the company’s Memorandum of Association and its appendices (legally translated into Arabic) and authenticated by the Ministry of Foreign Affairs.
  • A copy of the shareholder certificate.
  • No Objection Certificate from the Free Zone areas, with one-year validity (for foreign companies).
  1. Access the DLD Website: Visit the Dubai Land Department (DLD) website.
  2. Select “Register for -Rent-to-Own.”: Utilize the Contract service on the DLD website and choose “Register for Rent-to-Own.”
  3. Provide Financing Details: Enter details regarding the financing entity and the amount.
  4. Fill in Required Information: Complete the necessary information as prompted.
  5. Choose Payment Method: Select your preferred payment method.
  6. Attach Required Documents: Upload and attach the essential documents per the outlined requirements.
  7. Submit Application Online: Complete the process by applying online.
  8. Receive Confirmation via Email: The renter will receive the confirmation document through email.

Following these simple steps, you can initiate and complete the application process for the rent-to-own scheme in Dubai.

Transaction Fees

  • 0.25% of the rent amount.

Sale Price Fees

  • 2% of the sale price, payable by both the seller and the buyer.

Additional Fees

  • Knowledge fee: AED 10 (added to each fee).
  • Innovation fee: AED 10.

Developer Self-Registration Fee

  • AED 1,000 (for developers).

As declared by the Dubai Land Department (DLD), these fees provide a detailed breakdown of the costs associated with entering into a rent-to-own agreement in Dubai.

Planning to Invest in Dubai’s Thriving Real Estate? Must Familiarize Yourself with These 5 Laws

Dubai, known for its majestic skyline and luxurious developments, has become a hotbed for real estate investment in recent years. However, before delving into this booming market, it is crucial to understand the legal framework governing property management and ownership in Dubai. Familiarizing yourself with these five laws will protect your investment and ensure a smooth and profitable experience in Dubai’s thriving real estate sector.

  1. The Dubai Land Department Law

The Dubai Land Department (DLD) is the authoritative government agency entrusted with regulating the emirate’s dynamic real estate market. This pivotal institution is the cornerstone of transparency and legality in Dubai’s property transactions, overseeing the city’s comprehensive registration and documentation of all real estate dealings.

Roles and Responsibilities of the Dubai Land Department (DLD):

  • Transaction Recording: The DLD plays a pivotal role in the meticulous recording and registration of all real estate transactions in Dubai, ensuring a transparent and accountable property market.
  • Real Estate Regulatory Authority (RERA): A Pillar of Oversight: Operating under the umbrella of the DLD, the Real Estate Regulatory Authority (RERA) takes center stage in formulating and implementing laws and regulations that govern the real estate sector.

Key Duties of RERA Include:

  • Tenant-Landlord Relations: RERA collects and manages tenant and landlord details, acting as a mediator in tenancy disputes to foster a fair and balanced rental environment.
  • Foreign Investment Regulation: Playing a crucial role in shaping Dubai’s economic landscape, RERA regulates foreign investment in the real estate sector, ensuring a controlled and sustainable influx of international capital.
  • Advertisement Trustworthiness: RERA keeps a watchful eye on the trustworthiness of real estate advertisements, safeguarding the interests of both buyers and sellers by ensuring accurate and transparent property representations.
  • Licensing Oversight: The authority is responsible for licensing real estate brokers and developers, setting stringent standards to maintain professionalism and ethical conduct within the industry.
  • Industry Monitoring: RERA extends its oversight to financial institutions, insurance companies, and law firms operating within the real estate sector, ensuring compliance with established regulations and ethical practices.
  • Market Development Management: Actively involved in market development, RERA works towards the sustainable growth and prosperity of Dubai’s real estate sector, adapting regulations to meet the market’s evolving needs.
  1. The Strata Law 

The Strata Law in Dubai aims to regulate the ownership and management of jointly owned properties, such as apartment buildings and community developments. This law establishes the role of the owners’ association, which oversees the common areas and amenities within the property. It is important to familiarize yourself with the Strata Law to understand your rights and obligations as a property owner and the fees and restrictions imposed by the owners’ association.

  1. Freehold Ownership Law

In 2002, Dubai marked a pivotal moment by introducing the Freehold Ownership Law, presenting an unprecedented opportunity for non-UAE nationals to own property in exclusive “freehold” zones. These zones, including renowned areas like Dubai Marina, Downtown Dubai, and Palm Jumeirah, emerged as hotspots for international real estate investment.

  1. The Rental Law

Dubai’s Rental Law provides guidelines and protection for both landlords and tenants. It establishes the rights and obligations of each party, sets limitations on rental increases, and outlines the procedures for dispute resolution. As an investor, you must be aware of the provisions of this law to ensure fair and legal rental practices and to navigate any potential conflicts with tenants or property management companies.

  1. The Escrow Law

The Escrow Law in Dubai was implemented to regulate the flow of funds in real estate transactions. It requires developers to deposit investors’ funds in designated escrow accounts, thus protecting the buyers’ interests and ensuring the completion of projects. Familiarizing yourself with this law will enable you to verify if a developer is registered with the Escrow Account Regulatory Authority (EARA) and ascertain the financial security of your investment.

Ownership Types

Before purchasing, understand the type of ownership applicable to the property of interest to ensure legal compliance and assess long-term investment implications.

  • Freehold Property: Provides full ownership rights to Emiratis and foreigners.
  • Leasehold Property: Grants rights within designated areas for a fixed period, typically 99 years.

Developer Reputation

A reliable developer contributes to a smooth and secure property transaction.

  • Thoroughly research the property developer’s track record, completed projects, and customer feedback.
  • Reputable developers ensure quality construction, timely delivery, and efficient after-sales services, minimizing the risk of issues during and after the purchase process.

Property Types and Locations

Careful consideration of property type and location ensures long-term value appreciation and a comfortable living experience.

  • Dubai offers diverse property types (apartments, villas, townhouses, and commercial spaces).
  • Consider budget, family size, lifestyle preferences, and investment goals to choose the most suitable property type.
  • Evaluate the location based on proximity to amenities, transportation links, schools, healthcare facilities, and future development plans.

The Responsibilities of Owners and Management Companies During In-Unit Maintenance Under JOP Law

The vibrancy and elegance of Dubai attracts people from across the globe to work and live in the city. Everyone has a dream to own or rent a luxury villa, apartment, or townhouse. Irrespective of the type of property you own or rent, it is essential to understand the responsibilities and obligations related to in-unit maintenance costs. There has been a lot of confusion surrounding who must bear the cost of in-unit maintenance. Many owners and tenants believe that it is the responsibility of the management companies to pay for all the costs involved in-unit maintenance in a Jointly Owned Property. Dubai Law 6 of 2019 also known as the ‘Jointly Owned Property Law,’ 

Law 6 of 2019 clearly outlines the rules and regulations governing Jointly Owned Property management, including the allocation of maintenance expenses within the community. It focuses on jointly owned properties, which include residential buildings, commercial buildings, villa communities and mixed use properties. Under this law, all jointly owned properties must have an Owners’ Association Management Company responsible for managing and maintaining the common areas, facilities, and shared services within the property.

The Owners’ Association, represented by the management company, is responsible for maintaining the common areas, facilities, and shared services within the property. This includes – the upkeep of all common area assets such as – elevators, parking areas, swimming pools, gyms, and security systems.

Some of the key responsibilities of the Management companies in case of maintenance are as follows –

1. Structural Repairs: Any structural repairs or maintenance needed for the entire building, within 10 years from the date of issuance of the Building Completion Certificate is the responsibility of the developer. After 10 years, the responsibility is of the Owners’ Association and the management company.

2. Contingency Fund: The law requires each Owners’ Association to establish a contingency fund for unforeseen maintenance and repairs. This fund is funded by all property owners, through service charges and fees.

  • As per the Article 25 of the Law 6 of 2019, an Owner will pay to the Management Entity his share of the annual Service Charges to cover the Common Parts management, operation, maintenance, and repair expenses. This share will be calculated, using the relevant method approved by the Director General, based on ratio of the area of the Owner’s Unit to the total area of the Jointly Owned Real Property. 
  • The Owner’s share of the Service Charges will be calculated based on the area of his Unit as recorded in the Real Property Register.

Law 6 of 2019 addresses the management and maintenance of jointly owned properties, encompassing residential and commercial buildings, villa communities, and mixed-use properties. It mandates the establishment of an Owners’ Association Management Company to oversee common areas, facilities, and shared services in such properties. The Owners’ Association, represented by the management company, bears the responsibility for preserving common assets like elevators, parking areas, swimming pools, gyms, and security systems. Some key maintenance responsibilities include:

In case of structural repairs, for the first ten years following the issuance of the Building Completion Certificate, the developer is accountable for structural repairs. After this period, the Owners’ Association and management company assume responsibility. Each Owners’ Association must create a contingency fund funded by property owners through service charges and fees to address unforeseen maintenance and repair needs.

Owners, in compliance with Article 25 of Law 6 of 2019, are required to pay their share of annual service charges for the management, operation, maintenance, and repair of common parts. The calculation of this share depends on the area of the owner’s unit relative to the total area of the jointly owned real property, as recorded in the Real Property Register.

A Bullish Quarter: Key Insights into Q3 Real Estate Trends

Dubai’s real estate sector has reached unprecedented heights in terms of transaction volume. Throughout the year, it consistently set new records in each quarter, a testament to its robust performance. Dubai stands as an exemplar of excellence, capturing global attention with its modern, luxurious properties, drawing investors from around the world. The alluring blend of opulence has established Dubai as a real estate magnet, offering a remarkable 7-8% return on investment (ROI) that surpasses global standards. In the second quarter of 2023, this trend continued, cementing Dubai’s status as a beacon in the real estate realm.

Several factors drive this exceptional performance, including the exceptional quality and innovative designs of properties, favorable corporate tax policies, world-class infrastructure, high returns and rental values, and above all, a strong focus on safety. These factors distinguish Dubai from other cities worldwide, making it a prime choice for investors seeking premium offerings and superior returns.

Q3, 2023 has been one of the most successful third quarters in terms of both the number and value of the transactions.  According to DXB Interact, in Q2, 2023, a total of 31,399 sales transactions worth AED 97.5B (US $26.54 bn) were recorded. There was a whopping 23.1% increase in the number of transactions in Q3, 2023 compared to the same quarter previous year. Compared to Q2, 2023, the number of transactions increased by 3.8%

In terms of sales value, there is a 7% increase in Q3, 2023 compared to the previous quarter and a colossal 40.4% increase compared to Q3, 2022. 

Out of 31,399 sales transactions – 22,136 were apartments worth AED 43.2 billion5,627 villas worth AED 27.9 billion, 934 commercials worth AED 1.5 billion, and 2,702 plots worth AED 25 billion.

Compared to Q2, 2023, there was a 4.8% decrease in the number of apartments, while villa sales plummeted by 16.8% in Q2, 2023. The number of Commercial properties increased by 1% and the number of plots sold surged by whopping 111.6%.

When compared to Q3, 2022, there was a 23.3% increase in the number of apartments sold while the number of villas sold decreased by 2.9%. The number of Commercial properties surged by 9.8% while Plots witnessed an exponential increase of 196.9% in Q3, 2023 compared to Q3, 2022.

According to DXB Interact, the number of property sales transactions in Q3, 2023 stood at 16,697 worth AED 49.8 billion. This was a 5% increase compared to Q2, 2023 and 20.4% increase from Q3 2022. 

12,575 apartments were sold worth AED 28.5 billion. This was a 3.4% decrease in the sales of apartments compared to Q2, 2023 but a 24% increase from Q3, 2022. 

Sales of Villas in Q3, 2023 were 3,628 worth AED 19.3 billion. This was a 31.5% increase from the previous quarter but 0.5% decrease from Q3, 2022. 

129 Commercial properties were sold worth AED 184.8 million in Q3, 2023 which was a 63.3% increase compared to Q3, 2022 and a 1.6% increase compared to Q2, 2023. 365 Plots were also sold in Q3, 2023 worth AED 1.8 billion.

According to DXB Interact, there were 14,702 ready property sale transactions took place in Q3, 2023 worth AED 47.7 billion. This was a 2.4% increase from the previous quarter and a 26.4% increase from Q3, 2022. 

The number of ready apartments sold in Q3, 2023 were 9,561 worth AED 14.7 billion. This was a 6.5% decrease from Q2, 2023 but a 22.5% increase compared to Q3, 2022. Sales of villas in Q3, 2023 were 1,999 worth AED 8.6 billion – a 3% decrease from the previous quarter and a 7% decrease compared to Q3, 2022. 

805 Commercial properties were sold worth AED 1.3 billion in Q3, 2023. This was a 0.9% increase from the Q2, 2023 and an impressive 4.3% increase compared to Q3 2022.

Going by Sales volume, 43% of the real estate transactions that took place in Q3, 2023 were for ready properties, while 57% are for off-plan properties. 

In terms of Sales value, 34% of the transactions are for ready properties and 66% for the off-plan.

A total number of 8,611 Mortgage transactions worth AED 29.3 billion happened in Q3, 2023. Compared to Q3, 2022, there was a 52.9% increase in the number of transactions but a slight 6.5% decrease in total value.

Property prices also witnessed a rise in the third quarter of 2023According to DXB Interact, the median price for the property increased from AED 1,347 per sq. ft. compared to AED 1,179 per sq. ft.  in Q3, 2022. This was a 14.3% year-on-year (YoY) increase in property prices. When compared to Q3, 2014, the property prices in Q3, 2023 increased by 35.7%.

The price per sq. ft. for an off-plan apartment in Q3, 2023 was AED 1,850, while the prices for an off-plan villa were AED 1,262 per sq. ft. For the Off-plan Commercial Properties, the price per sq. ft. was AED 1,575.

The price per sq. ft. for the Ready apartment was AED 1,118 while the price per sq. ft. for the Ready villa was AED 1,074.

Q3, 2023 was one of the best quarters for the sales of luxury properties. 95% of the total properties sold in the third quarter of 2023 were above AED 1 million.

  • 17% of the properties sold were the priced above AED 5 million
  • 22% of the properties sold were in the price range of AED 3 – 5 million
  • 23% of the properties sold were in the price range of AED 2 million-3 million
  • 34% of the properties sold were in the price range of AED 1-2 million
  • 5% of the properties sold were below the price of AED 1 million

This sales value proportion does not include mortgage transactions.

Villas: The most expensive villas sold in Q3, 2023 were at Emirate Living (AED 209 M), Palm Jumeriah (AED 202 M), Tilal Al Ghaf (AED 100 M), The World (AED 79 M) and MBR District 1 (AED 68 M).

Apartments: The top 5 projects with the most expensive apartments sold were – Jumeirah Marsa Al Arab at Marsa Al Arab (AED 420 M), Six Senses Residences The Palm at Palm Jumeriah (AED 116 M), Como Residences at Palm Jumeriah (AED 112 M), Jumeirah Living at Marsa Al Arab (AED 65 M), and One Za’abeel Tower (AED 60 M).

According to DXB Interactthe top 5 most expensive areas to buy an Apartment by per sq. ft. in Q3, 2023 were – Dubai Marina (AED 2,995 AED per sq. ft), Downtown Dubai (AED 2,490 per sq. ft), Business Bay (AED 2,292 AED per sq. ft), Dubai Creek Harbour (AED 2,177 per sq. ft.), and Jumeirah Lakes Towers (AED 2,035 per sq. ft).

The top 5 most expensive areas to buy a Villa by per sq. ft. in Q3, 2023 were 

MBR District 1 (AED 1,615 per sq. ft) Damac Lagoons (AED 1,598 per sq. ft). Arabian Ranches 3 (AED 1,523 per sq. ft.), Mudon (AED 1,229 per sq. ft). and Wadi Al Safa 3 (AED 1,177 per sq. ft).

Dubai’s real estate market is poised for an extraordinary surge in property prices, outshining prominent cities such as Miami and Paris. According to AI-driven research conducted by Realiste, Dubai’s real estate sector is on the cusp of substantial expansion in 2024, with growth projections hovering around 15%. This optimistic outlook is fuelled by a trifecta of factors: robust demand, a flourishing economy, and heightened foreign investor interest. 

The burgeoning demand in Dubai’s real estate sector will be propelled by a confluence of factors such as – urban development, infrastructure projects, and a burgeoning population. These dynamics are providing a fertile ground for both local and international investors, making the market particularly appealing.

Dubai’s thriving economy, characterized by diversification and innovation, will further amplify the attractiveness of its real estate sector. This environment will foster stability and opportunities for investors seeking long-term growth and stability. Moreover, the heightened interest from foreign investors will underscore Dubai’s status as a global real estate investment hub and will make it a prime destination for those seeking lucrative prospects in the real estate market.

Simplify Property Management with Effective Tenant Screening

Effective tenant screening is a critical aspect of property management that allows landlords and property managers to find quality occupants for their rental properties. Conducting thorough tenant screenings can minimize risks, ensure a smooth and hassle-free rental experience, and simplify your property management duties.

Qualifications

One of the main parts of effective tenant screening is evaluating a potential tenant’s qualifications. This involves assessing their income, employment stability, and rental history. Here are some important things to consider:

  • Income: It’s important to find out if the applicant has a steady source of income and if their income meets your rental property requirements. A general rule is to ensure the tenant’s monthly income is at least three times the rent.
  • Employment Stability: Checking employment stability can determine whether a potential tenant can consistently pay rent on time. Confirm their work history by asking for pay stubs or contacting their employer directly.
  • Rental History: Looking into an applicant’s rental history helps identify any warning signs that may indicate future problems. Watch out for late rent payments, evictions, or lease violations. Contact previous landlords to ask about the applicant’s behavior as a tenant.

Setting specific qualification criteria can help attract dependable tenants and simplify your screening process. Consider making a list of requirements based on your property’s unique needs and local market conditions. By clearly stating these qualifications to prospective tenants, you can ensure that only qualified applicants apply for your rental property.

For example:

  1. Minimum credit score requirement
  2. No prior eviction history

Thorough background checks are an important part of the tenant screening process. Property managers can get important information about potential tenants to make informed decisions. Here’s a breakdown of the different types of background checks that should be done:

Types of Background Checks

  1. Criminal History Check: Checking a potential tenant’s criminal history is vital to ensure your property and other residents are safe. This includes looking for any convictions or pending charges that could be a problem or show a pattern of criminal behavior.
  2. Employment Verification: Verifying an applicant’s employment history helps decide if they are stable and can pay rent on time. It confirms where they get their income from and gives an idea of how stable their job is, which is important for knowing if they can afford the rent.
  3. Credit Checks: Running credit checks lets you see how responsible a potential tenant is with money and if they have a good track record of paying debts and bills on time. A good credit score means they are financially stable, while a bad one may cause concerns about their ability to pay rent consistently.
  4. Eviction History Checks: Checking if an applicant has been evicted before gives you an idea of their past experiences with renting and if they have had any problems.

Important Points to Remember

  1. Ensure that you follow local background check laws and get written permission from applicants before doing them.
  2. Doing thorough background checks helps lower risks, choose trustworthy tenants, and have a smooth renting experience for everyone involved.

Interviewing prospective tenants helps you learn more about the applicant and decide if they would fit your rental property well. Here are some things to keep in mind when conducting tenant interviews:

Assessing Lifestyle Compatibility

Ask questions about their lifestyle to see if it matches the property’s rules and regulations. For example, you can inquire about their daily routine, hobbies, and social activities.

Discussing Rental Policies

Explain your rental policies to them and see how they react. Are they understanding the terms and conditions? Do they have any concerns or objections that could lead to issues later?

By asking specific questions in these areas, you can better understand the applicant’s personality and lifestyle and how they might impact your rental property.

This personal interaction complements the information gathered from background checks and references, giving you a more complete picture of the prospective tenant.

Contacting references helps to validate the information provided by the tenant and gain additional perspectives on their character and reliability.

Specific Inquiries During Reference Checks

During reference checks, it’s essential to ask specific questions that can provide valuable insights into the applicant’s rental history, behavior, and reliability. Some key inquiries to make during reference checks include:

  • How long did the applicant rent from you?
  • Did the tenant consistently pay rent on time?
  • Were there any complaints from neighbors or issues with property upkeep during their tenancy?
  • Can you confirm the applicant’s employment status and income stability?
  • Would you consider renting to this tenant again in the future?

Fair Housing Laws are regulations designed to ensure equal and fair treatment of all individuals seeking housing, prohibiting discrimination based on race, color, national origin, religion, sex, familial status, or disability. These laws must be strictly followed during tenant screening to avoid discrimination or bias.

Failure to adhere to Fair Housing Laws can lead to legal repercussions and tarnish the reputation of property management professionals. Therefore, integrating these laws into the tenant screening process is crucial for maintaining ethical and legal standards within the rental industry.

  • Evaluate gathered data.
  • Compare applicants against rental criteria.
  • Prioritize reliable tenants.
  • Communicate decisions with transparency.
  • Document the decision-making process for future reference.
  1. Reducing the risk of costly evictions and property damage

By selecting tenants who meet your criteria for responsibility and reliability, you can minimize the likelihood of facing evictions due to non-payment or property damage. 

  1. Creating a peaceful and harmonious living environment for all residents

Choosing tenants who align with your property’s values and policies can reduce conflicts among residents and promote a sense of security and well-being.

The tenancy contract or rental agreement is a legally binding document granting a tenant the right to use a property for a specified purpose and duration. It outlines lease terms, mutual expectations, and requirements to prevent misunderstandings and disputes in Dubai.

You can download the official Dubai standard rental contract from the Dubai Land Department’s website or the Dubai REST app. This editable form is accessible in Arabic and English, allowing landlords and tenants to incorporate any necessary conditions.

The standard tenancy contract in Dubai encompasses:

  1. Governing laws
  2. Landlord’s obligations
  3. Tenant’s obligations
  4. Contract terms and conditions
  5. Ejari registration

Be mindful that Ejari registration and other associated costs are additional expenses in Dubai’s rental process, so knowing them in advance is crucial.

Whether you reside in a villa or a studio flat for rent in Dubai, understanding the tenancy laws is crucial. Governed by Dubai Rental Law No. 26 of 2007 and its amendment Law No. 33 (2008), these laws outline landlords’ and tenants’ rights and responsibilities.

Decree No. 43 of 2013 addresses matters related to property rent increases in Dubai. Rental dispute resolutions, whether through arbitration or courts, fall under the Rent Disputes Settlement Centre, established by Decree No. 26 of 2013.

To ensure proper registration and oversight of rental contracts, RERA employs the Ejari system. Landlords and tenants must register their tenancy agreements in Dubai on Ejari, formalizing their rental arrangement in a government-approved format.

The Impact of Owner Associations on Shaping Vibrant Community Living

Owner Associations are essential for creating a strong sense of community among residents. These associations consist of property owners who work together to manage and maintain their shared spaces and amenities. By collaborating, they establish lively living environments that offer many advantages to residents.

One of the primary benefits of entrusting your community to an (Owners Association) OA management company is the efficiency it brings to day-to-day operations. It ensures that your community functions seamlessly, handling administrative tasks, financial matters, and communication channels with practiced precision.

Managing the finances of a community is a complex task that demands expertise. A management company can provide transparency and accountability in financial matters. They handle the collection of dues, budget preparation, and financial reporting, ensuring that funds are managed efficiently and responsibly.

Two terms often emerge in financial planning and community management: sinking funds and reserve funds. These financial tools are crucial in ensuring stability and preparedness for unforeseen expenses.

  1. Sinking Fund: This is a pool of money set aside over time to cover a specific future expense. This could include upcoming maintenance projects, equipment replacements, or other anticipated expenditures.
  2. Reserve Fund: This is a broader concept encompassing a pool of money set aside to cover various contingencies. It serves as a financial safety net for economic downturns.

Effective community communication is vital. Owner-association management companies excel at connecting residents, board members, and vendors. They keep everyone informed about community news, events, and vital announcements through newsletters, websites, and email updates. Acting as a central hub for inquiries, they streamline information access for residents.

Hiring a management company relieves board members of time-consuming and stressful community management tasks. The company handles administrative duties, maintenance coordination, and daily operations, enabling board members to concentrate on strategic planning and decision-making.

Consistent maintenance standards and proactive management practices contribute to an environment where property values are maintained over time.

By enforcing rules regarding property upkeep, owner associations ensure that all properties within the community meet a certain standard. This consistency in maintenance helps preserve property values and prevents individual homeowners from negatively impacting their neighbors’ property values.

Beyond the financial and operational aspects, an OA management company is pivotal in fostering a sense of community spirit.

  • Community Engagement: Owner associations often organize events or activities that encourage residents to come together and socialize.
  • Shared Values and Interests: Communities with owner associations often have specific rules or guidelines to maintain a particular lifestyle or uphold shared values. 
  • Opportunities for Involvement: Owner associations provide platforms for residents to participate in decision-making through committees of board meetings actively. 

Disputes can arise in any community, and having a professional OA management company ensures that conflicts are addressed swiftly and diplomatically.

  • Implementing fair processes: They establish clear guidelines for conflict resolution, ensuring that all residents are treated equitably.
  • Providing neutral mediation: Owner associations act as impartial facilitators in conflict resolution processes, helping to find mutually acceptable solutions.
  • Establishing communication channels: Owner associations provide platforms for residents to share information, voice concerns, and collaborate on community initiatives.

Owner Associations must stay ahead in the technological landscape, integrating online portals and automated systems to enhance communication and streamline processes. Embracing innovation keeps your community connected and ensures unparalleled efficiency in the digital age.

Looking ahead, owners associations must embrace change and innovation to future-proof communities. From sustainable practices to collaborative decision-making, they actively contribute to developing communities that stand the test of time.

  1. Diverse Community Dynamics: Communities are diverse, comprising individuals with varying backgrounds, lifestyles, and preferences. Nurturing a sense of community amidst such diversity requires finesse.
  2. Effective Communication: Communication breakdowns can hinder community cohesion. Ensuring residents stay informed and engaged can be a struggle for OAs in a fast-paced world.
  3. Balancing Individual Needs with Community Interests: Residents often have individual needs and priorities that may not align with broader community goals. Striking a balance between personal interests and the greater good of the community is a delicate task.
  4. Evolving Community Dynamics: Communities are dynamic entities, subject to change due to shifts in demographics, lifestyles, and societal norms. Adapting to these changes while maintaining a sense of community requires strategic planning.

One of the most significant benefits of hosting events within Owners Associations is the sense of community they cultivate. Social events, such as neighborhood picnics, seasonal festivals, or even fitness classes, provide residents with opportunities to connect, build relationships, and foster a strong sense of belonging.

Attracting and Retaining Quality Residents

Communities with vibrant event calendars become attractive to potential residents. These events showcase the neighborhood’s liveliness and the Owners Association’s commitment to creating a thriving community. This, in turn, helps attract high-quality residents more likely to stay long-term, contributing to a stable and desirable living environment.

Enhancing Investor Appeal

An Owners Association that actively organizes events signals a well-managed community with engaged residents. This appeal can make the area more attractive to potential investors, positively influencing property demand and increasing property values.

Impact on Rental Values

Events contribute to the overall desirability of a neighborhood, which can directly impact rental values. Residents are often willing to pay a premium to live in a community that offers a rich social life and a variety of activities. This increased demand can translate into higher rental values, providing property owners with an added financial incentive to participate in and support community events actively.

At Kaizen Asset Management Services (AMS), our dedication to community management goes beyond the conventional. What sets us apart as a leading firm is our unwavering focus on community engagement events, an integral part of our mission to “Create Memorable Experiences and Communities.”

Celebrating Diversity:

With over 150 managed communities housing a diverse population of 45,000 residents representing 50+ nationalities and 100+ cultural backgrounds, Kaizen takes pride in embracing diversity. Our commitment extends to celebrating every festival and event with equal enthusiasm, cherishing this diversity’s richness.

A Tapestry of Events:

Kaizen orchestrates a wide array of community engagement initiatives, ensuring a vibrant tapestry of experiences for residents. From festive celebrations like Eid, Diwali, and Christmas to special occasions like Valentine’s Day and Mother’s Day, we leave no stone unturned. Our calendar also features unique events like Yoga Day, Halloween festivities, virtual quizzes, and the ever-popular Krafty Kids sessions. With this, Kaizen received the “Happiest Residential Community of the Year” award at the Customer Happiness Summit and Awards 2023.

Global Collaborations for Local Delight:

To ensure the success of our community events, Kaizen collaborates with top-notch event management companies globally. These partnerships enable us to bring a global flair to local celebrations, offering residents an experience that transcends cultural boundaries.

Capturing Moments, Creating Memories:

Recognizing the importance of preserving these precious moments, we invest in skilled photographers. Their lens captures the essence of our events, creating a visual narrative that reflects the thriving and engaged community environment Kaizen strives to cultivate.

Supporting Sustainability: The Significance of Timely Payment of Service Charges

Timely payment of service charges by residents is the cornerstone of property management companies’ ability to initiate and launch sustainable initiatives within residential communities. These payments provide the financial stability, budget flexibility, and resources necessary to invest in eco-friendly practices that benefit both the residents and the community.

Property management companies perform a vast gamut of duties ranging from maintenance, security, landscaping, resident welfare, collection of service charges, and above all ensuring green cover and sustainability for better health of the residents and minimize the impact of the real estate operations on the environment. To initiate these duties and sustainability initiatives, property management companies are highly reliant on the timely payment of service charges by residents to ensure they have solid cash flows to initiate these initiatives. This article delves into the critical relationship between timely payments and sustainability initiatives, highlighting how residents’ financial responsibility empowers property management companies to drive positive change.

Service charges, also known as maintenance fees or homeowner association fees, are the financial lifeblood of property management companies. Management firms collect service charges from the residents on a monthly or quarterly basis and are used to cover the costs of essential services and maintenance within the community. These charges may encompass expenses related to:

  1. Maintenance: This includes funds spent on the regular upkeep of common areas, such as landscaping, pools, and elevators
  2. Security: Hiring security personnel and maintaining surveillance systems for residents’ safety
  3. Utilities: Water, electricity, and gas expenses for shared spaces
  4. Amenities: Upkeep and enhancements to communal facilities, such as gyms, clubhouses, and playgrounds
  5. Reserve Funds: Saving for future major repairs or improvements
  6. Sustainability: deploying technologies (like Building Management System) to minimize energy consumption and carbon emissions of the residential community, installing energy-efficient devices to improve efficiency and \ cost, and promoting sustainable irrigation to minimize water consumption to name a few.

The service charge is determined annually based on estimated running costs for communal areas in your development. These costs encompass various elements, including landscape maintenance (grass cutting, garden upkeep), lighting, heating, and cleaning of communal indoor spaces, window cleaning (external and internal), lift and fire equipment maintenance, upkeep of electrical and mechanical equipment, general repairs, salaries for onsite staff, buildings insurance, and bank charges plus audit fees, as required by the lease terms.

In an era, fraught with escalating apprehensions regarding climate change and the imperative need for environmental sustainability, property management firms find themselves under intensifying pressure to incorporate eco-friendly practices into the very fabric of their communities. This burgeoning concern stems from a heightened global awareness of the pressing ecological challenges we face today.

Timely payments play a pivotal role in property management, influencing various aspects of financial stability, budgeting, sustainability, engagement, and overall community impact. It provides them financial stability to execute sustainability projects, which often require substantial upfront investments. Timely payment of service charges also ensures streamlined budgeting, which allows property management firms to allocate funds for regular maintenance and sustainability endeavours. This ensures adherence to budgets, preventing disruptions in essential services. Furthermore, sustainablenitiatives typically involve higher initial costs but yield long-term savings. Timely payments provide resources for property management companies to invest in sustainable technologies and practices, ultimately reducing operational costs over time.

Some of the major Sustainability initiatives launched by property management firms to promote sustainability are as follows –

  1. Harnessing the Sources of Clean Energy

Property Management firms invest significantly in exploring innovative ways to use clean energy. They install solar panels to generate clean energy for common areas. Solar power harnesses energy from the sun and reduces the building or community’s reliance on non-renewable energy sources. This not only lowers electricity costs but also minimizes carbon emissions, contributing to a greener and more eco-friendly property management approach.

  1. Recycling Initiatives

Property management companies spend a significant proportion of services charges collected from the residents in initiating a wide range of recycling programs with an assessment of current practices and set clear goals. They also collaborate with smart waste recycling firms to leverage their expertise on the best ways to recycle waste in managed communities in an eco-friendly way minimizing carbon footprints. Property management firms also set up a well-planned criterion for the procurement process to ensure they buy only sustainable materials from third-party vendors and service providers for maintenance and renovation of the community.

  1. Installing Advanced Electric Devices to Increase Energy Efficiency

Timely payment of service charges allows Property Management firms in deploying a list of energy-efficient devices and technologies to increase the energy efficiency. This includes – installing LED lighting and smart thermostats, into communal spaces, upgrading lighting, HVAC systems, and appliances, usage of smart devices to automatically turn on and off the lights to minimize energy consumption and greenhouse gas emissions.

  1. Green Landscaping / Sustainable irrigation

Green Landscaping is an environmentally conscious approach to designing and maintaining outdoor spaces. It revolves around the use of native plants and sustainable landscaping techniques to achieve two primary objectives: water conservation and biodiversity promotion. Native plants are indigenous to a particular region and have adapted over time to its specific environmental conditions. They typically require less water and maintenance than non-native species, making them a sustainable choice for landscaping. By choosing native plants, property management firms significantly reduce their water consumption for irrigation and contribute towards the water conservation efforts and potentially lowering water bills.

Furthermore, Green Landscaping emphasizes sustainable landscaping techniques like smart & efficient irrigation systems which requires minimal water and retains soil moisture, reduces weed growth, and moderate soil temperature to reduce the need for excessive watering. Implementing efficient irrigation systems, like drip irrigation, minimizes water wastage by delivering water directly to the plant roots.

  1. Organizing Events to Create Awareness Among Residents about Sustainability

Timely payment of service charges increases the ability of the property management firms to launch education programs to create awareness about sustainability among the residents. It also allows management firms to ensure utmost compliance with the environmental regulations of the local authorities to avoid any potential fines or lawsuits from the government from harming the environment. Management firms organize timely community education events, workshops and awareness campaigns to promote sustainability in the residential community.

Unveiling Dubai’s Next Real Estate Gem: The Impact of ‘Palm Jabel Ali’ Development

Dubai has emerged as a captivating destination for affluent individuals globally, drawing them to acquire opulent real estate properties valued at $10 million and beyond. Fueled by an insatiable demand from high net-worth individuals (HNWIs) worldwide, the prices in Dubai’s residential market continue to expand, with prime residential prices, surging by 58.9% between Apr 2022 to Apr 2023, according to the latest report titled – Dubai Prime residential values surge by 59% by Knight Frank. This meteoric rise has propelled Dubai’s prime residential market to attain the highest appreciation rate globally which is primarily driven by record-setting prices commanded by beachfront villas.

Rise in HNWIs Increasing the Demand for Premium Properties

According to the Henley Private Wealth Migration Report 2023’, the UAE will attract 4,500 new millionaires in 2023. In total, 128,000 millionaires will relocate this year, which is 6,000 more than in 2022. The UAE is currently home to 109,900 millionaires with $1 million-plus wealth, 298 centi-millionaires with $100 million-plus assets and 20 billionaires.

The 2023 report by Knight Frank titled Destination Dubai,’ has unveiled that high net-worth individuals possess a substantial budget of US $2.5 billion earmarked for Dubai’s real estate sector this year. This follows a noteworthy spending spree of US $3.8 billion on properties valued at over US $10 million in the previous year. The report underscores the burgeoning interest of affluent buyers in premium neighbourhoods, with Downtown (comprising 37%) and Palm Jumeirah (at 30%) ranking as the preferred locales among survey respondents.

This exponential rise in the number of HNWIs and their budget on buying property in Dubai will increase the demand for property severalfold in 2023. Wealthy buyers are flocking to Dubai to buy luxury homes, primarily those situated in the city’s most sought-after districts. Most of these HNWIs are from the UK, Europe or North America and prefer to live at a premium residential location. This has been one of the biggest reasons behind the development of the unprecedented project –Palm Jebel Ali’.

What is Palm Jebel Ali?

Dubai, known for its ambitious and awe-inspiring projects, has once again captured the world’s attention with the announcement of the Palm Jebel Ali development. The visionary project, twice the size of its predecessor, Palm Jumeirah, is part of the Dubai 2040 Urban Master Plan and aims to solidify Dubai’s position as the most beautiful city in the world. 

Under the guidance of HH. Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, Palm Jabel Ali promises to redefine waterfront living, positively impacting real estate sales, enhance the tourism sector, and contribute to Dubai’s sustainable growth.

In a momentous announcement, HH Sheikh Mohammed shared his excitement about the new plan for Palm Jebel Ali. Spanning an expansive area of 13.4 square kilometres and offering an impressive 110 kilometres of coastline, this mega development will be home to over 80 hotels and resorts. The project sets the stage for an unmatched luxurious lifestyle experience, furthering the city’s objective of becoming a premier global destination for both businesses and tourism.

Palm Jebel Ali aims to raise the bar for waterfront living, incorporating extensive green spaces and unique waterfront experiences. It is estimated to accommodate approximately 35,000 families, providing unrivalled luxury beachside living. The project aligns with Dubai’s Economic Agenda D33, which strives to enhance the city’s status as a leading global hub.

A Catalyst for Sustainable Growth

Incorporating sustainable practices, Palm Jebel Ali stands as a model for contemporary urban planning. The development integrates renewable energy resources, making it nearly self-sufficient in terms of power generation. Around 30% of its energy requirements will be obtained from renewable sources, highlighting Dubai’s commitment to a greener future.

Nakheel to Transform the Ambitious Project into Reality

The realization of this ambitious project is in the hands of Nakheel, a prominent Dubai-based real estate master developer. Under the guidance of Sheikh Mohammed, Nakheel envisions transforming the landscape of the Emirate and establishing Palm Jebel Ali as a world-class lifestyle destination.

The Impact of ‘Palm Jabel Ali’ on the Real Estate Sector

The ambitious project of Palm Jebel Ali will act as a catalyst in accelerating the growth of the real estate sector severalfold. Let’s explore how this mega development can influence the property market and reshape the real estate landscape in the city.

1. Boost the Demand for Luxury Properties

Palm Jebel Ali’s visionary concept and luxury lifestyle offerings are expected to attract high-net-worth individuals and investors from around the world. The project’s unique beachside living and high-end amenities are likely to drive the demand for premium properties in the surrounding areas.

2. Increase  Property Prices and Rents

As the development progresses and gains global attention, property prices in and around Palm Jebel Ali are likely to surge due to increased demand. This revolutionary project will explore new & lucrative investment opportunities, which will attract investors from across the globe to start their businesses and buy property for residential purposes. This will lead to a substantial increase in the prices and rents for both residential and commercial real estate. 

3.  Increase Tourism Leading to High Demand Will Boost the Short-Term Rental Market

With the addition of 80 hotels and resorts, Palm Jebel Ali will enhance Dubai’s allure as a tourist destination. This surge in tourist influx will also stimulate the short-term rental market and will offer property owners an opportunity to generate attractive rental yields.

4. Enhance the Waterfront Living Experience

The project’s introduction of about 110 kilometres of coastline to Dubai will create new waterfront living experiences. Such developments have historically been highly sought after by buyers which will further drive the demand for properties with stunning waterfront views.

5. Boost  Infrastructure Development 

Palm Jebel Ali is known as a centrepiece in Dubai’s urban master plan. The development will catalyse the expansion of infrastructure and amenities in the area, benefiting the entire real estate ecosystem and fostering the growth of nearby residential and commercial projects.

6. Diversify Property Offerings

The project’s scale and vision will necessitate a diverse mix of property types, catering to various segments of the market. From luxurious villas and penthouses to upscale apartments, the development will diversify the real estate offerings in Dubai, accommodating the preferences of different buyers and investors.

7. Attract Global Investors to Dubai’s Real Estate

As Palm Jebel Ali gains international attention, it is likely to attract foreign investment into the Dubai real estate sector. International buyers and developers seeking opportunities in a thriving market will be drawn to this mega project, fostering increased collaboration and investments.

8. New Growth Corridor Will Expand the Development of Properties

Palm Jebel Ali’s strategic location will create a new growth corridor in Jebel Ali, offering immense potential for the development and expansion of new residential and commercial projects. This will lead to the emergence of new communities and will create promising prospects for real estate developers.

9. Create the ‘Spillover Effect’ in the Surrounding Areas

As the development unfolds, the neighbouring areas of Palm Jebel Ali will experience a spillover effect. Enhanced infrastructure, improved amenities, and a prestigious neighbourhood will uplift the appeal of these regions, reflecting positively on their real estate markets.

10. Shape Dubai’s Real Estate Landscape

Palm Jebel Ali’s successful realization will cement Dubai’s reputation as a global hub for innovative and visionary real estate projects. It will set new standards for urban development, influencing future projects and shaping Dubai’s real estate landscape for years to come. Palm Jebel Ali’s grand vision and strategic location have the potential to revolutionize Dubai’s real estate sector. As it unfolds, the project is expected to attract investors, stimulate property demand, and accelerate infrastructure development, establishing itself as a game-changer in the city’s property market.

The Role of the Owners’ Committee in the Maintenance & Repair of the Community

Owners’ Committee (OC) is one of the most crucial bodies in ensuring effective and efficient management of the community. It is also responsible for performing timely repairs to resolve any defects or structural issues in the building which can cause serious damage. Owners’ Committee (OC) acts as a representative in safeguarding the interests of owners and ensuring the proper management of jointly owned properties (JOP). 

Appointment and Membership

According to  Dubai Law 6 of 2019, the Owners’ Committee must be appointed by RERA and consist of 2 to 9 members, including a Chairman and Vice Chairman. Owners’ Committee selects a Chairman to interact with the management company and RERA, adhering to legal terms and conditions. OC powers and tasks align with Law No. 6 of 2019 and associated regulations. 

Key Responsibilities of the Owners’ Committee

The Owners’ Committee is primarily responsible for the administration, operation and management of a project with the appointed RERA-licensed and approved management company (the ‘Managing Agent’).  According to Dubai Law 6 of 2019 also known as the ‘Jointly Owned Property Law,’, the Owners’ Committee will exclusively be responsible for – 1.

1. Verification of the Management Entity

Owners’ Committee is responsible for verifying that the Management Entity undertakes the management, operations, maintenance, and repair of the common areas.

2. Reviewing Maintenance Budgets

    The Owners’ Committee is responsible for reviewing, and providing the necessary recommendations on the annual budgets for the maintenance of the Jointly Owned Real Property; and for this purpose, requests the Jointly Owned Real Property financial reports.

    3. Recommending Ways to RERA to Overcome Management Challenges

    Owners’ Committee is responsible for discussing the obstacles and difficulties related to the management, operations, maintenance, and repair of common areas; and submitting the necessary recommendations on the same to the Management Entity or RERA, as the case may be.

    4. Notification of Structural Defects

    Owners’ Committee is also accountable for notifying the Management Entity or RERA of any defects in the structural parts of the Jointly Owned Real Property; or any damage to, or defect in the common areas that require urgent repairs.

    5. Maintaining Safety and Environmental Regulations

    Owners’ Committee submits any proposals regarding the method of use of common areas; or regarding amendment of the Building Management Regulation to the Management Entity, in which case the amendment must be approved by RERA. They also coordinate with RERA, the Management Entity, or the Competent Authority with respect to any safety, environmental, security, or other matters related to the Jointly Owned Property. 

    Kaizen AMS Wins ‘Property Management Company of the Year’ Award for the Second Time in a Row at Smart Built Environment 2023

    Dubai, October 6, 2023 – Kaizen Asset Management Services (Kaizen AMS) is delighted to announce its recent recognition as the ‘Property Management Company of the Year’ at the esteemed Smart Built Environment Awards 2023, held on October 5, 2023, at the Park Hyatt, Dubai. This accolade further solidifies Kaizen’s enduring legacy of excellence at the Smart Built Environment Awards and underscores its robust commitment towards environmental sustainability and the safety and well-being of the UAE residents. 

    The Smart Built Environment Awards serve as a platform to acknowledge companies within the built environment for their outstanding efforts and practices in enhancing communities’ well-being, advancing smart city initiatives, and promoting sustainability. The awards recognize excellence in four major areas of real estate: Property Management, Community Management, Facilities Management, and PropTech. The two-day forum features keynote speeches, panel discussions, presentations, and workshops, addressing key issues and trends driving real estate development and management in the Middle East.

    Kaizen AMS clinched awards in three prominent categories: ‘Property Management Company of the Year,’ ‘Sustainable Community Award,’ and ‘Partnership Award – PropTech’ in collaboration with Socienta.

    In the ‘Property Management Company of the Year’ category, Kaizen AMS emerged victorious due to its consistent investment in pioneering technologies, which have been implemented across its portfolio of 130+ managed communities in Dubai. These innovations have resulted in reduced operational costs, minimized energy and water consumption, enhanced resident satisfaction scores, and the creation of memorable experiences for over 40,000 residents. This recognition came after competing against industry giants such as Asteco, Aeon & Trisl, Banke International Properties, and Metropolitan Group.

    The ‘Sustainable Community Award,’ introduced for the first time at the Smart Built Environment Awards, acknowledged Kaizen AMS for its exceptional dedication to sustainable building projects and its positive impact on occupant well-being and the environment in 2022. This recognition holds special significance as it aligns with UAE President HH Sheikh Mohd. Bin Zayed Al Nahyan’s declaration of 2023 as the Year of Sustainability’. Kaizen AMS faced stiff competition from Ejadah, LOAMS, Provis, and Sharjah Sustainable City in this category.

    Furthermore, Kaizen AMS was honoured with the ‘Partnership Award – PropTech’ for its collaborative work with its technology partner – Socienta in driving digital transformation within Dubai’s real estate sector and addressing complex industry challenges with cutting-edge technology and expertise.

    Notably, Kaizen AMS’ experienced Facility Manager, Mr. Anas Gahshan, was a Runner-up in the ‘Next-gen Personality of the Year’ category, recognizing his outstanding contributions to the built environment and his promising future as an industry leader.

    Speaking on this occasion, Kaizen AMS’ Founder and CEO, Mr. Fadi Nwilati, stated, “Yet again, we Kaizeners have proven that people with great passion can make the impossible happen. Our monumental success is attributed to our unwavering focus on creating memorable experiences, deploying innovative property technologies to reduce energy consumption and operational costs, and launching sustainability initiatives to mitigate our environmental impact.”