Property Management Checklist: What To Do Before Handing Over Your Rental Property For Management

According to Arabian business in 2024, Dubai saw a whooping 44% increase in rental transactions. With such a thriving market, it’s no wonder you may be considering handing over your property to a management company. 

But hold on. Before you pass the keys, there’s a bit of prep work to do.

Handing over your property is like entrusting your prized Rolls Royce to a valet – you want to be 100% sure everything’s safe and secure. A little preparation goes a long way to ensure your property is not only in great shape, but is profitable under management.

1. Gather ALL Documents

Photo by: Sam J

Here’s what you’ll need:

• Title deed
• Passport copy
• Ejari registration
• Emirates ID (for UAE residents)
• No objection certificate (NOC) from developer (if applicable)

However, don’t sweat it if this seems overwhelming. Most property management companies in Dubai can guide you through the process. The key is to start gathering these documents early to avoid any running around later.

P.S: Always keep digital copies of your documents. You never know when you’ll need them, and it’s a lifesaver when you do need them.

2. Assess Property Condition 

Photo by: Semuk

Just before you hand over your property, you should do a quality check. Here’s how:

1. Create a detailed inventory of all fixtures, fittings, and appliances.
2. Do a thorough walk-through, noting any existing damages or wear and tear.
3. Take high-quality photos and videos of each room, including close-ups of any issues.

3. Evaluate Your Finances

What’s your financial goal for your property?

Are you looking to cover your mortgage, make a profit, or to first break even? Calculate your potential rental income, so at the very least, you have an idea even before a property management company does it for you:

1. Research similar properties in your area (check out AirDNA for vacation rentals, and Property Finder or Bayut for long term rentals).
2. Factor in seasons – Dubai’s rental market can fluctuate based on the time of the year (especially for short term rentals).
3. Consider any mortgage payments, service charges, and potential management fees.

4. Get Insurance Coverage

Insurance IS necessary. 

Photo by: Mikhail Nilov

What if a sandstorm damages your property? Or a tenant accidentally floods the apartment? Now’s a good time to review your current policies or consider getting coverage if you haven’t already – so you don’t incur more charges from the property management companies. 

Here’s a quick comparison of common insurance types in Dubai:

5. Set Up Utilities

Setting up utilities in Dubai isn’t so daunting. Here’s how to do it:

1. Contact DEWA (Dubai Electricity and Water Authority) to set up electricity and water.
2. For internet and TV, reach out to providers like Etisalat or Du.
3. If you’re using gas, contact Emirates Gas for connection.

Pro Tip: Many property management companies can handle utility transfers for you, so if you don’t have the time for this step, you don’t have to do it.

6. Get Furnishings and Appliances

To furnish or not to furnish – that is the question you must answer.

A well-furnished apartment can give you an edge. But it’s not always necessary you do this by yourself. Your management company can help you out.

Photo by: Vecislavas Popa

If you decide to furnish:

• Create a detailed inventory
• Opt for durable, easy-to-clean furniture 
• Consider neutral colors that appeal to a wide range of tastes

If you’re going unfurnished, make sure basic appliances like AC units, water heaters, and kitchen appliances are in good working order.

7. Select the Property Management Company

Yes we know this is a checklist of “what to do before handing over to property management,” but just in case you’re yet to find the perfect partner, this section is for you.

Choosing a property management company in Dubai is like speed dating – you want to find the right match without wasting time. Here are some essential questions to ask:

• What’s your experience managing properties like mine?
• Can you provide references from other property owners?
• How do you handle maintenance and tenant issues?
• What’s your fee structure?

Red flags to watch out for:

• Unclear fee structures
• Lack of local Dubai experience
• Poor communication during the inquiry process

You’re not just hiring a “mere” service; you’re choosing a partner in your property investment journey. Take your time and choose wisely.

8. Contractual Agreements

Photo by: Pixabay

Now for the fun part – contracts. Just kidding, it’s never fun. But it is crucial. Key elements to look for in your property management agreement:

• Management fee structure
• Maintenance handling
• Tenant screening process
• Financial reporting frequency
• Scope of property management services (this is SO crucial)

A good property management contract protects both you and the management company. Don’t be afraid to ask questions or seek legal advice if something’s unclear.

9. Handover

It’s finally happening. You’ve successfully prepared your property for management. Clap for yourself – you’ve earned it. Once you’re set to handover your property to a management company, here’s what to expect:

1. Meet with the management company representative (in person or virtually)
2. Hand over all keys, access cards, and important documents
3. Review the property condition report and inventory list
4. Discuss communication preferences and emergency protocols
5. Sign the final agreements

Bring along:

• All relevant documents
• A list of any special instructions or preferences
• Your A-game and a positive attitude.

Wrapping It Up: Post-Handover Considerations

Sweet. You’ve made it through the PREP (yes we coined that) process:

• Papers in order
• Research done
• Expectations set
• Property ready

Yet, your journey isn’t over – it’s just beginning. Think of your property management relationship like a long-distance friendship. Regular check-ins keep things running smoothly.

Consider setting up monthly or quarterly performance reviews and planning occasional property visits (or virtual tours if you’re abroad). Also remember that you and your property manager are a team. Open communication is key to a successful, profitable partnership.

Thorough preparation isn’t just about ticking boxes – it’s about peace of mind. By following this pre property management checklist, you’ll set yourself up for property management success in Dubai.