Price in Dubai real estate market is going down for the last 4 years. Talking about real estate not only sales and rentals of it we consider, service market is diversifying together with changes in fee structure of each service provider. Property management fees in Dubai used to be similar to brokerage fees, percentage was the usual way of fee calculation in Dubai as well as in the UAE, however real estate asset management fees should not be calculated only that way as this is a fixed routine service that is provided continuously.
How much should the management services cost? In different countries property management prices are calculated differently:
- In Middle East countries the rates start from 5% and may reach 30% of annual rent depending on the type of lease, short-term long-term;
- In European countries the price list varies from 10% to 18% of annual rent. It is also possible to pay a fixed fee, which is EUR 150.00 per month or higher;
- In USA, Canada and Australia we can see a mixed fee schedule. The minimum you may have to pay is USD 1,800.00 per year, or 10% of annual rent, or the charge will be equal to 1st month of your annual rent.
It contains many reasons, why landlords all over the world find property management services more and more demanded. Service industry itself becomes more demanded since people are busy with their business and personal staff, so someone needs to take care of things those busy ones don’t have time to. In addition to that, reliable service provider is a reliable partner in a long run, it is also a key to successful investment, where financial resources become protected and appropriately utilized. Otherwise, the risk of having losses gets closer to your investments.
Some property owners overspend by paying separately tenant find only fee (from 3% to 8% of annual rent), maintenance checklist visit fee (from AED 100.00 to AED 250.00 per visit), property lawyer legal fee (from 10% to 25% of claiming amount), EJARI fee (AED 215.00) and a number of fees against many other services. All together it easily reaches AED 8,000.00 per annum, where additionally you have to spend your time in matters you are not experienced about – as a result each hour of your time is a stressful way of overspending more and more money. To avoid this, we recommend hiring a professional property manager where all services come in a package on a reasonable rate. AED 500.00 per month is what you should not exceed in spending against all mentioned above. To summarize - saved time is what you should be getting in return.Contact us and find out more about how to resist oversupplied market conditions.