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“DIY property management”
Sounds tempting.
You might think you’re saving big bucks by skipping the pros. But hold up – are you really?
Sure, Dubai’s real estate market is hot. But running your own rental? It’s not as simple as collecting rent and calling it a day.
There’s a ton of stuff you might not see coming:
In this guide, we’ll break down the true costs of self property management in Dubai. We’re talking money, sure, but also your time and peace of mind.
By the end, you’ll know if going solo is worth it – or if it’s time to bring in some help.
Let’s get real.
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Self-property management is exactly what it sounds like – you’re the boss, the fixer, the rent collector, and sometimes, the shoulder to cry on.
It’s rolling up your sleeves and handling everything for your rental property. No middle-man, no property management fee – just you calling the shots.
But before you dive in, let’s take a closer look at what you’re really signing up for.
The biggest benefit of self property management is that you “potentially” have more money in your pocket. No middleman means no slice of your rental income to a management company.
Getting to know your tenants can be pretty rewarding. When you’re not paying property management fees in Dubai, you get to be the friendly face behind the property.
You’re not just a faceless landlord – you’re Karen Sarah, who brings cookies during inspections. This personal touch can lead to longer tenancies and fewer headaches. Just remember, boundaries are key. Playing the nice landlord or host can be fun, but remember you’re still running a business.
When you’re the boss, you call the shots. You see a problem, you fix it.
This quick approach can save you time and, potentially, money. No middle-man means no delays. But remember, with great power comes great responsibility. You’ll need to make smart choices — and fast.
The best part of managing your property by yourself is that – you save up on property management fees. You don’t have to pay any company anything since you’re the company yourself. This is a major reason why many people choose to do rental management themselves.
A major challenge of self property management is how it’s time-consuming, stressful, and downright frustrating. You might find yourself googling “how to unclog a toilet” or trying to understand legal stuff that feels like it’s written in ancient Greek.
Photo by: Energepic
Let’s not sugarcoat it – self-property management is tough. And we’re saying that as a property management company in Dubai with dedicated teams for each property owner. How much more if you choose to do what an entire team does – by yourself?
And here’s the kicker – you may end up increasing your property management cost in the long run. Surprise expenses and first-timer mistakes can add up.
Time – the currency we never seem to have enough of. Managing Airbnb properties is a full-time gig, especially if you’ve got more than one property. Between finding tenants or short term guests, rental listings, handling maintenance, and keeping up with paperwork, you might find yourself wondering where your weekends went.
It’s like having a needy pet, except this one pays rent (usually).
According to a survey by Mortgage Solutions, over 50% of landlords treat the management of their properties as a full-time job.
From fair housing laws, DTCM, or eviction procedures in some cases, there’s a lot to keep track of in Dubai. Ignorance is NOT bliss when it comes to property laws. One wrong move and you could lose your rental property.
Self-managing your Dubai property can lead to significant savings.
However, many self-managed properties often have more vacancy days per year compared to professionally managed properties. The increased vacancy can potentially offset these savings:
P.S: The only way these savings don’t apply is if we’re comparing to a property management company like Homevy – which charges zero markup on maintenance and overall fixes.
Now, let’s address the elephant in the room – money.
Managing your property by yourself can be a bit like playing Monopoly, except the properties are real and the money… well, that’s real too. The goal is to pass GO and collect $200 your full rental income – without landing on the “Hire a Property Manager” square.
Photo by: Vodafone x Rankin
Yet, self-managing doesn’t mean expense-free management. There are still costs to consider. Let’s break it down.
The total cost of technology and tools for self property management in Dubai ranges from AED 340 to AED 1,650 per month — or AED 4,080 to AED 19,800 annually.
This includes:
Keep in mind, these costs can vary based on the specific tools you choose and the scale of your property portfolio.
In Dubai, keeping your rental safe isn’t just good karma—it’s the law. And trust us, it’s easier to fix a smoke alarm than explain to authorities why you didn’t.
Total annual cost: AED 2,950-5,800
These figures can vary based on your property’s size and condition. For a typical 1-bed apartment, expect to spend about 1-2% of your property’s value annually on maintenance to meet safety standards.
At Homevy, we’ve seen how proactive maintenance can prevent major issues and keep tenants happy. It’s an investment in your property’s future—and your peace of mind.
Let’s talk about your most precious resource: time.
Photo by: Karolina Kaboompics
As a self-managing landlord, knowing what your time is worth can help you make smarter decisions. Is it worth spending two hours mowing the lawn at your rental property, or should you hire a service?
On average, self-managing landlords spend 20-30 hours per month on property tasks. That’s time you could spend growing another business, hanging with family, or walking your dog.
Remember, time is money. If your hourly rate at work is AED 100, those 30 hours equate to AED 3,000 per month. Suddenly, a professional management service doesn’t look so bad, does it?
Some methods to keep tabs on your time:
After combining all essential insurance types for your rental property, you’re looking at an annual cost ranging from 0.2% to 0.5% of your property’s value, plus 2% to 3% of the annual rent for rent default insurance.
Insurance and risk management are crucial aspects of property ownership and management. They protect your investment from potential financial losses due to various risks.
For a typical AED 1 million property with an annual rent of AED 100,000, this translates to approximately AED 5,500 to AED 15,500 per year, or AED 458 to AED 1,292 per month. This comprehensive coverage includes property, liability, rent default, and mandatory building insurance.
While it might seem like a significant expense, it’s a small price to pay for protecting your valuable investment in Dubai. Yet, keep in mind that the exact cost of property insurance can vary based on factors like property type, location, and coverage limits.
Managing your property yourself can be rewarding, but it comes at a cost – both financial and personal.
When you tally up the expenses for software, maintenance, legal compliance, insurance, first-time mistakes, and your valuable time — self-management can run you anywhere from AED 35,000 to AED 50,000 annually for a typical 1BR apartment.
At first, the idea of self management looks cheap compared to parting away with 5 to 10% of your rental income. However, when you reallllllly look at it, it’s way more expensive. The hidden costs are — stress, lost opportunities, and potential mistakes.
With professional property management, you have less risk – since payment is ONLY on merit. If the property doesn’t make enough money, the company doesn’t get paid enough as well. However, if you’re managing by yourself, you have to still pay the bills.
In the end, the question isn’t just about cost – it’s about value.
Is your time and peace of mind worth the potential savings extra costs? For many Dubai property owners, the answer is a resounding no.
Choose wisely.
Get access to our 5-day training course on managing your vacation rental property in Dubai.
Learn More