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The Advantages of Real Estate Management Agencies in Dubai

03/29/2024 288
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Real estate is one of the most popular investment types. However, new homeowners and apartment owners often face issues requiring adept management of their acquired assets. How to find a tenant? What rental price to set? And most importantly, how to organize the management process if the property is located abroad?

The optimal solution would be to conclude an agreement with a company specializing in property management. Such a solution will relieve the owner from many potential risks and problems, save time and protect from stress.

Self-managing Real Estate in Dubai: Challenges and Risks

The property management process includes the following aspects:

  • Rent. Finding and screening tenants, concluding lease agreements, collecting rent and managing rental relationships.

  • Maintenance of the object. Providing maintenance and technical support, furnishings, and carrying out necessary repairs.

  • Financial responsibilities. Financial management, budgeting (drawing up necessary expenses for the future period), reporting and tax obligations.

  • Customer service. Advertising and marketing properties, as well as communicating with clients, handling complaints and taking into account the needs of tenants.

Property management also entails adhering to laws, regulations, and rules associated with owning and managing a villa or apartments.

Dubai's unique infrastructure with its luxurious restaurants, shopping centers, excursions, and entertainment programs attracts millions of tourists from around the world annually. Not all of them wish to stay in hotels, opting for more comfortable and spacious apartments or flats instead.

On one hand, this represents potential income for property owners in one of the UAE's largest centers. On the other hand, it brings a host of problems faced by owners trying to manage such an asset independently.

Renting out an apartment in Dubai often accompanies the following difficulties:

  • Finding a tenant;

  • Negotiating the rental agreement with potential clients;

  • Navigating the nuances of local legislation;

  • Managing property maintenance;

  • Communication and resolving potential disputes and conflicts with tenants;

  • Budgeting, tax, and other types of reporting. 

Also, owners often face the question of choosing the type of lease. Both types have their pros and cons, but in terms of financial indicators, short-term rentals are usually more profitable than long-term rentals.

The main advantages include:

  • High profitability. Short-term rentals typically yield higher returns than long-term rentals. The price is affected by location, area, furnishings. With proper management, the return on an asset can average up to 10% per annum.

  • Flexibility. The owner can decide when to pause the process of renting out the property in order, for example, to relax on his own or to provide it for the use of friends or relatives.

  • Prompt sale. The rise in real estate prices in Dubai suggests the possibility of quickly and profitably selling an apartment, house or apartment if the owner urgently needs money. With a long-term lease, it will not be possible to sell the apartment before the end of the contract and without notarized notice to the tenant 12 months in advance.

  • Possibility of remote property management in Dubai. Contacting an agency specializing in short-term rentals will help resolve issues related to the management and maintenance of the villa/apartment in working order.

  • Constant monitoring of the condition of the property. Since after each tenant moves out, the apartment is inspected and cleaned, all minor breakdowns and defects are also eliminated in a timely and efficient manner before they “grow” into big problems. A deposit when booking from the tenant is a guarantee of reliability and compensation for damage in the event that damage is caused by the fault of the tenant.

  • 100% prepayment. Short-term rent requires 100% prepayment. Moreover, the contract can only stipulate a partial refund in case of non-occupancy. 

  • Mortgage payment through rental income. The profit earned from rentals can be used by the owner to pay off a loan or installment plan, if it was used for the property purchase. 

It's essential to understand that renting out property in Dubai has its unique nuances, due to the peculiarities of UAE legislation. For instance, owners are required to pay an annual service fee for house maintenance, regardless of whether they live there themselves or rent it out in any type of lease. The latter depends on the apartment/villa area, building location, its infrastructure (presence of a pool, gym, apartment balcony) and additional services (garbage disposal, security, concierge).

With short-term rentals, utility bills are paid by the owner, while with long-term rentals, they are paid by the tenant.

Delegating Property Management to Professionals is the Best Possible Solution

A well-chosen management company in Dubai will not only solve problems and prevent potential risks but also turn them into opportunities for greater profit.

It's practically impossible to rent out an apartment in Dubai on your own, minimizing downtime. Management companies employ experienced marketers who devise strategies for placing rental ads and composing attractive descriptions and offers, significantly increasing transaction chances. This comprehensive approach reduces downtime and ensures a steady income.

Knowledge of legislation, including local regulations, allows management firms to avoid problems and mistakes often made by novices in the process of independent registration or utility connection. Collaborating with such companies significantly reduces the risks of fines and legal claims, including those from the state.

Transferring rental collection duties to agencies guarantees timely payment to the owner and relieves them from dealing with payment delays by tenants. Management companies also monitor the property's condition, maintaining, and sometimes increasing, its market value. This is especially important for owners intending to sell their property in the future.

Advertisements like "renting out apartments in Dubai" are common on many online boards and internet platforms today. Owners who decide to manage the rental process independently face a real quest, involving not only finding reliable clients but also interacting with local utilities and government agencies, as well as registering this activity and obtaining a license.


With RAD Holiday Homes, you take the worry and stress associated with owning and managing your property. Our managers will take care of all issues: from posting advertisements to assisting with utilities, internet, or TV connections.

You can peacefully focus on other aspects of life, confident in the professionalism and experience of our staff.

Choose RAD Holiday Homes Rental and we will prove that your well-being is our top priority.