To understand how much money you need to buy a rental in Dubai, let’s speak about its real estate prices at first. Of course, prices vary from community to community and depend on area, property type, and its size. For example, apartment studios have the lowest price.
Here we listed where ready apartment studio prices start form in different affordable areas in Dubai in 2019:
With each unit, no matter its price and location, you have two options – buying with your own money or financing. Therefore, let’s do detailed research for each case separately to get the complete picture.
If you decide to purchase a rental using only your savings and without any liabilities, you need to have all the amount of money needed for the deal.
Though the lowest price is AED 250,000, it doesn’t mean 250,000 dirham will cover all your expenses. So, do not forget about closing costs. They include at least:
Hence, to buy an apartment studio of AED 250,000, prepare to spend least AED 267,680. To clarify, in addition to studio price, you need to pay AED 17,680 for closing costs:
Note, Registration fee of AED 2,100 is charged only for properties that cost less than AED 500,000. However, if the property cost more than AED 500,000, you need to pay AED 4,200 for its registration.
To make your calculation easier, we provide you with a general formula of your total costs for property below AED 500,000:
Your total costs = property price + 6% of property price + AED 2,680 (AED 4,780 for property above AED 500,000).
If you decide to purchase a rental with financing, you need to cover your down payment as well as closing costs.
Typically, banks require no less than 25% of property value for down payment. For example, for an apartment studio of AED 250,000 your deposit must be at least AED 62,500.
With mortgage deals at place, your closing costs are higher than when you buy a rental with your own money. Your expenses here include:
Hence, to buy an apartment studio of AED 250,000 with financing, you need at least AED 17,680 to cover your closing costs:
The rule of charging AED 4,200 for registration the unit of AED 500,000 and more are also valid here.
So, to calculate the amount of money you need to buy a rental in Dubai with mortgage scheme, use the following formula:
The needed amount of money = 31% of property price + 0.25% of the loan + AED 5,595 (AED 7,695 for property above AED 500,000).
However, keep in mind in all mortgage transactions the question about money you posses now is not the only one. Here the question about how much you earn arises as well.
Can A Property Management Company Increase The Rent?
The answer to this question is a two-way street. First, according to the client request, a property management company can consider the possibility to increase rent.
Landlord Tenant Issues & Solutions
It is great when no issues with tenants come to spoil your landlord experience. However, if any issues occur, it is great to be armed with the knowledge of how to resolve them. In this post, we discuss some effective solutions to make the settlement of disputes between landlords and tenants easier for you.
Benefits Of Regular Property Maintenance
Yes, regular property maintenance benefits you all around. First, you save money on repairs, preventing major ones from occurring. Second, you face less stress and lower risks to have an emergency. At last, you keep your tenants happy as they enjoy good living conditions.
The Lakes Area Guide
The Lakes is another perfectly established neighborhood in Dubai. Rich in greenish. Gated. Full of amenities for a serene and luxury lifestyle. The area is really great. And if you have a rental property here, you have all the chances to turn it into a flourishing rental business.
The Meadows Area Guide. Part 2
We continue to guide you on Meadows Dubai. In this post, we will analyze who lives in the area, its transportation options, and what amenities, educational and healthcare facilities the area provides.
The Meadows Area Guide. Part 1
Meadows Dubai is a luxury housing development, charming with its greens and lakes. Do you have a rental property here? If so, this guide will help you to have a clear picture of rental prices and trends in Meadow.
Jumeirah Park Area Guide
Jumeirah Park is a wonderful development that offers luxury living. One of the benefits of having rental properties in this area is you are dealing with high-income tenants. That is to say, this minimizes the risks of cheque bounce and even provides longer tenancy contracts.
What is City Walk Dubai?
City Walk Dubai is a luxury community that offers high life for its residents and beneficial rental opportunities for the landlords. Being still under development, it promises to be even more unique and luxury.
The Lifestyle in Dubai Downtown
Dubai Downtown is often regarded as a key area for young enthusiasts. Indeed, it is a wonderful mix of Arabic and international culture, excellent business and job opportunities, and close proximity to Dubai highlights and famous attractions.
Dubai Hills Estate Area Guide
As an expert of the real estate market, we would like to pay attention to the Dubai Hills Estate area now. That’s why we present here a complete guide to clarify all your opportunities and limitations when renting out your property located in this area.
Dubai Marina Area Guide
Are you aware of how gorgeous your Dubai Marina area is? An elaborate combo of city and beach lifestyle opportunities! Unsurprisingly, apartments here are in great demand. So, if you want to rent apartments in one of Dubai Marina’s properties, contact us. We will help you quickly find a tenant and manage your property.
Lifestyle Of Palm Jumeirah
It is nobody’s secret; Palm Jumeirah lifestyle is one of the most luxury one in Dubai and all over the UAE. The benefits of the area provide a lot of opportunities for rental business.
Living in Emirates Hills
Living in Dubai is great. And here, Emirates Hills stands out from other residential areas with its luxury lifestyle. That’s why we often have requests for villas for rent in this wonderful community.
What Has Been Done To Protect Tenants During The Covid-19 Restrictions?
The year 2020 is unique not only by its pretty number sequence. It’s made history as the fiercest pandemic of the century, the Covid-19 pandemic.
How Rental Rates For Real Estate In Dubai Have Changed Amid The Pandemic?
It is not a secret now the pandemic has covered all countries around the world and has had a great impact on the global economy. Thus, it is only a question of the degree to which each exact country and each exact market were affected. Moreover, it is a question of how long they will recover and, in particular, what the next year may look like.
Everything You Need To Know About RERA Rental Property Laws
Just as every game should have its rules, every activity that involves certain contract relationships should have clearly defined laws. These laws regulate and govern the most common aspects regarding what each of the parties shall (or shall not) or is allowed (or not allowed) to do.
What Is The Legal Validity Of A Rent Agreement?
The legal validity of a rent agreement (a tenancy contract) stands for its legitimacy and binding of its provisions for all its parties during the whole contract period or until certain circumstances occur.
All You Need To Know About The Rent Agreement
The population in Dubai is around 3.48 million people. And 80 percent of them live in rented apartments or villas. In other words, a demand for rental properties in Dubai is really high.
New Regulations For Bounced Cheque In Dubai
The post-dated cheque (aka the draft) is the rent payment method that is widely used in Dubai as well as all over the UAE. Even if you agree to split your annual rent payment onto two or more parts, writing out a draft for each part in advance on the day of signing the lease is the common way to follow.
How Can I Rent My Apartment Quickly In Dubai?
The common belief is only landlords desire to get into the rental deal in the shortest possible time as they lose their rental income otherwise.
The Tenant Has Caused Damage To Property
Renting out a property always involves certain risks. What if a tenant damages my property? What if he doesn’t pay or pay the low rent? These are two main questions that often restrain persons from stepping into the landlordship.
Pros And Cons Of Allowing Tenants To Sublease
A sublease is a not-unheard practice. But as a landlord, you need to fully understand all the aspects and pitfalls this practice involves.
For Rent High Life Dubai
For many years Dubai attracts people with its luxury lifestyle. The Forbes tops buy grand villas and apartments here to live here from time to time.
Easy Lease With BSO Property Management Company
More and more property owners entrust their assets to us. What is our core value? We save time. Not just declaratively. Actually.
BSO Mortgage Assistance
Yes, when using mortgages and bank loans to raise funds, your total cost of ownership can be twice higher compared to using your own money. Still, if your savings are limited, this is the only option to become a happy owner.
Assistance In Buying Property In Dubai
You may feel slightly taken aback when you want to buy property in Dubai with all that rumors and unknowns. In this post, we will cover all the FAQs with detailed answers to provide you a complete picture.
Is It Better To Transfer Your Property To A Management Company Or Do It Yourself?
Though rental income is often mentioned as passive, rental business still involves some tasks to perform.
How To Keep Your Tenants Happy
Finding good tenants is a sort of science. Keeping them happy is an art. It is true in every kind of rental business and especially when it comes to residential property.
Plan Your Trip Take Advantage of Expo 2021 with BSO
Are you going to travel to Dubai or the UAE at the end of this year or the beginning of the next one? If so, what a lucky you are! To clarify, in the last quarter of 2021 (namely, on 20 October) Dubai will host one of the most exciting event, Expo 2021 and will run it till the beginning of the first quarter of 2021 (namely, till 10 April).
Meet The Expo 2021 Dubai With BSO
Attention! Considering the present situation, each and every country has to endure a severe impact of COVID-19. Expositions, competitions, and other events are either postponed or cancelled. EXPO 2020 is not cancelled but postponed. The new date of the EXPO 2020 start is 1 October 2021 and will last up to 31 March 2022.
Sale Price Trends For Properties In Dubai
Property price trends and actual rate of return on investment (ROI) are always of great interest for investors in Dubai. Besides, trends in property sale prices are useful for those who plan to make Dubai their home as well.
What Is Residential Property Management?
First of all, let’s clarify residential property is real estate built and used for dwelling purposes In Dubai, such real estate includes flats in various communities and villas.
Tenant Damages My Property
It is said hope for the best prepare for the worst. So, when you rent out your flat, villa, or other property, no one can guarantee your property is in safe. In other words, chances are your tenant could damage your property or even destroy it.
Maintenance And Repair Tips For Landlords And Tenants
Stepping into tenancy relationships, you should be familiar with both parties’ responsibilities regarding the safety of the other party’s property and goods. Thus, you can avoid or prevent most of future troubles.
How To Rent An Apartment In Dubai
When you rent your apartment in Dubai regularly, you know the process perfectly, as the rules haven’t been changed for a long time. However, if it is your first time, you may be little taken aback with all the steps you need to go through and legislation peculiarities.
Property Disputes for Tenancy Contracts in Dubai
Dubai authorities made huge progress in their effort to establish good relationships between landlords and their tenants when they clarified the landlords’ and tenant’s rights.
Do You Have What it Takes to Be a Landlord?
The rental business may seem to be so easy, attractive, and money-promising. However, it is still a business. In other words, it has its risks, problems, and obligations.
How Often Can A Landlord Increase The Rent In Dubai?
Issues about landlord rights to increase the rent value are most burning for tenancy relationships in Dubai. As it always comes when the interests of two parts are conflicting, one’s benefits cause losses for another part.
Can You Get A Residency If You Buy A Property In Dubai?
In 2002, expatriates were allowed to purchase property in Dubai. Since then, issues of getting a residence via property purchase have become of great interest. Now, buying a property is one of your best options to secure the residency without the need of sponsors.
Resolving Disputes Between Landlords And Tenants
Ideally, when both parties fulfill their obligations and respect other party rights, they have few or no tenancy disputes at all. Moreover, they are capable to resolve any issues by mutual consent. Unfortunately, disputes occur with a landlord or a tenant to blame.
How Much Money Do You Need To Buy A Rental In Dubai?
To understand how much money you need to buy a rental in Dubai, let’s speak about its real estate prices at first. Of course, prices vary from community to community and depend on area, property type, and its size.
How To Get Started Investing In Rental Properties In Dubai
There are many ways to earn money. Getting a job is the most common, but investing is something that can really benefit you. Hence, it is a good way to make a fortune and improve quality of your life. Besides, investment in rental properties is one of the simplest and popular investments. So, why not to start investing in rental properties?
Shifting To A New Home In Dubai
Nothing can last forever. So, one day you may discover your want (or need) to change your location in Dubai or outside it.
A Tenant’s Guide to Setting Up Utilities
One of your responsibilities as a tenant could be to pay your utility bills. It seems to be rather fair as you are the person who is using utility services.
Asset Management Fees for Commercial Real Estate
When you hire a company to manage your commercial property, you don’t expect they will do it for free, don’t you? Instead, you expect them to charge you with some money for their services. This sum of money is known as a property management fee.
How To Find Commercial Tenants in Dubai
Commercial real estate, also known as CRE, refers to properties exclusive for business. These properties include offices, shops, restaurants, warehouse, and other establishments that generate profit.
How To File A Case Against Tenant
Now, your property is rented out and it seems that everything is going well. Or so you thought it is going fine. Then you will encounter problems with your tenant.
Bounced Cheques In Dubai: What You Need To Know
Rental transactions, nowadays, are usually done in multiple payments. Thus, cheques are issued by tenants to landlords. It’s the most common way of setting rental payments here in the UAE.
Landlord’s maintenance contracts
For property maintenance, some landlords opt to go with service providers on an annual basis. Landlords do this simply because they don’t have time or resource to do it. But is it really worth it? Imagine paying a whole year of service then finding out there were no issues.
Trouble With Tenant
Tenants paying rent on time and being responsible is what every landlord want. However, they will still encounter troublesome tenants every now and then. That’s why some of them seek assistance from property management companies to address it. But how do we identify this kind of tenants in the first place?
How To Send a Rent Increase Notice
Rent increase is a serious amendment of the tenancy contract. Therefore, the Government developed some rules to make the rent increase procedure less painful for the tenants and give them time to prepare.
How to find good tenants?
You have property in Dubai that is vacant. What can you do with it? Of course, have it rented out to generate income. What do you need then?
Networking and marketing tips
How many brokers are actively searching for tenants for you?
To secure yourself from it you need to make your due diligence in the very beginning – before you sign the tenancy contract. Any information related to the prospect tenant may help in getting more accurate tenant screening result.
Weak points of your tenancy contract
It is important to draft legally correct tenancy contract before renting your unit to a tenant.
How to find reliable tenant in the UAE
Good business conditions in the UAE attract a lot of businessmen. Experienced entrepreneurs, as well as young ones, choose this land to grow their business. But every business needs a place! So why not surrender your land to some responsible entrepreneur and make it profitable?
Professional property management in Dubai has been taken to a new standard by BSO, which provides UAE landlords with outstanding opportunities.