
Learn How To Manage Your Rental Property
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Dubai’s real estate market has long been a magnet for expat investors. With its tax-free environment and high rental yields, it’s no wonder you’re considering joining the property owner’s club.
But…is property management worth it for expats like you?
I mean, you’re thousands of miles away – or maybe you’re even in Dubai — but totally new to how things work here.
In this guide, we’ll tell you errythangg you need to know about property management for expats in Dubai. We’ll help you decide if handing over the keys to a property management company is the right move.
Just before we dive in, let’s get clear on what we’re talking about. Property management isn’t just about collecting rent and fixing sinks (though that’s part of it).
Property management services are a range of tasks — offered by a property management company — to keep your rental property running smoothly AND profitably. Think of it as having a skilled team on the ground in Dubai, acting as your eyes, ears, and hands.
Here’s what a typical property management service in Dubai might include:
“But I can manage my property even if I’m in America” Not really. Being a landlord outside of Dubai isn’t glamorous. Some hurdles you’ll face include;
Photo by: Ketut Subiyanto
Say you’re based in New York, and your Dubai tenant calls about a broken water heater at 3 AM their time — that’s 7 PM for you. Do you take the call in the middle of a family dinner? Or risk leaving your tenant without hot water?
Dubai’s property laws are ALWAYS changing. As of 2024, there are new regulations about short-term rentals in certain areas. Keeping up with these changes from afar can be a full-time job in itself.
From minor repairs to major renovations, maintaining your property from a distance is challenging. You might find yourself playing an expensive game of telephone, trying to coordinate between tenants, maintenance workers, and suppliers – all while hoping nothing gets lost in translation.
These challenges can quickly become a time-consuming headache. For resident expats, some of these issues could be manageable. But if you’re managing properties from abroad? Hmmmn. Things can get complicated.
Photo by Kaboompics
Okay now that we’re clear on the what and the challenges you’ll face (should you prove stubborn). Let’s talk about the when — when it makes sense to consider a property management service as an expat in Dubai:
If you’re not living in Dubai, property management becomes almost essential. The challenges of long-distance landlording – from time zones to local market knowledge – are often best handled by professionals in the country.
As your property portfolio grows, so does the complexity of managing it. If you own multiple properties in Dubai, a management service can will help you scale your investments without scaling your nightmare stress levels.
If you’ve “just arrived” as a new landlord in Dubai…
@mapulamokgosang #southafrica #cyrilramaphosa #phalaphalafarm #ancnec ♬ original sound – mapulamokgosang
…a property manager can provide invaluable guidance and help avoid costly rookie mistakes.
If your day job or family life leaves little room for managing properties, outsourcing this task will be a smart move.
As founders of the best vacation rental management service in Dubai, we’ve had firsthand experience as expat property owners in Dubai ourselves – which positions us to uniquely address the specific needs and concerns of fellow expats.
If you’re here, that means you figure property management might make sense for you – so let’s talk numbers.
Most property management companies in Dubai charge a percentage of the monthly rent, typically ranging from 5% to 15%. Some may also charge additional fees for services like finding new tenants or handling major repairs.
Here’s a quick breakdown:
While property management services offer numerous benefits, it’s important to consider potential drawbacks:
To mitigate these drawbacks, open your eyes and do thorough research when choosing a management company. Look for companies with strong reputations, clear communication policies, and a track record of success with expat property owners.
Photo by: Yan Krukau
If you’ve decided that property management is the way to go, here’s how to maximize the value of this service:
Selecting the right company is crucial. Look out for experience with expat property owners, knowledge of Dubai’s property market, and transparent fee structures. Also check for positive reviews and testimonials.
Once you’ve chosen a company, clarify your goals for the property (e.g., maximize short-term rental income vs. long-term appreciation). You can also set ground rules like:
Your property management strategy should evolve with your needs and market conditions:
Yes, most property management agreements allow for owner use. You’ll need to communicate your plans in advance to avoid conflicts with bookings, especially for short-term rentals. Make sure to discuss this when setting up your management agreement.
While Dubai itself doesn’t impose income tax on rental income, you may have tax obligations in your home country. A good property manager can provide detailed information to assist with your tax filing, but you should ALWAYS consult with a tax professional for specific advice.
Whether you choose full-service management, a hybrid approach, or decide to go the DIY route, the key is to make an informed decision based on your unique circumstances and goals. And note, as your situation changes, so too can your property management strategy.
Don’t be rigid.
Catch you in the next one!
Get access to our 5-day training course on managing your vacation rental property in Dubai.
Learn More