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Tips How to Successfully Invest in Buy to Rent Properties in Dubai


Investing in a buy to rent property essentially means purchasing property in order to let it out to tenants. This will allow you to earn generous rental income as well as the capital appreciation potential. In the future, the latter will be handy as it will boost your property’s value, allowing you to increase the rent or sell your property for more than the original purchase price.

Residential rental properties are often more available to newcomers because they are less costly. Less money is needed in advance and this often ensures that funding is easier to get. While there are variations, it is also usually easier to manage residential rental properties. In most cases it is easier to manage one tenant than to manage several.

Many investors buy rental properties in Dubai in order to get a good amount of cash flow receiving more income each month than they spend on expenses. Investing in a buy to rent property is a form of real estate investing and requires you to take up an active role, put in time, work with dedication and involvement. The part which involves being an active landlord isn’t everyone’s cup of tea. As you’ll come to understand, there’s much work involved in identifying, analysing, buying, and managing a quality rental property. The most important questions to answer before investing in buy property for rent in Dubai are listed and explained below.

Also Read: Things You Need to Know When Investing in Rental Properties

·       Determine where you want to invest and what type of house you want to invest in

This involves a lot of research. Initially, you’ll already have an idea of what you can afford and be able to narrow down options. Once you determine where and what you invest in, the largest part of the process is complete. Where you invest will be mostly dependent on the return and profitability of the location and how popular it is and will be among tenants.

Invest in Buy to Rent Property·       Find potential rental properties to Invest in Rental Property in Dubai

This part follows the initial research. You can shortlist houses to buy and rent, conduct house viewing and inspections and determine what work needs to be done to the homes (renovation, repairs etc)

·       Analyze the rental property and run the numbers

Once you choose your property, you will analyse every aspect that will contribute to your capital gain in future. Accessibility, amenities, facilities, popularity among tenants, types of residents in the area and other relevant details will be covered in detail. This is something you will work on with a reputed real estate agent that will handle the paperwork aspect and simply provide you the details in a simplified manner. Run the numbers, determine how much rent you will charge, how often you expect payments, how they’ll pay, maintenance charges and utilities estimates.

·       Financing

One of the major steps is to Figure out home finance, whether you choose to use a bank to finance your home or make cash purchase. It is crucial to cover this aspect, especially compiling a detailed financial forecast showing your cash flow, allowing you to plan out your expenses accordingly.

Buy to Rent Property

·       Find your tenants.

Depending on the area and the type of tenants you look to have, a real estate property listing company is all you’ll need to do and you’ll be able to filter through an influx of potential tenants accordingly.

Also Read: Guide to Invest in Real Estate

·       Property management

Most investors, especially those who buy houses to rent opt for the services of a professional property management company to handle all aspects of their property for them. This includes leasing agreements, documentations and all relevant legal paperwork, finding tenants, dealing with tenants throughout tenancy, maintenance of your property, rent collection and several other services are all benefits of using such a company. Investors won’t earn much at all should they have to handle their property or multiple properties themselves as its definitely not time efficient, cost efficient or even possible in most cases.

Invest in Real Estate Market

Investing in a buy to rent house in Dubai, is a smooth and profitable option several investors, especially new investors choose to go for. Investment in Dubai’s property has proved to be profitable and extremely beneficial time and time again. In Dubai, the buy to rent system works really well and there is a significant percentage of the working segment that look for such homes, and in heavily populated areas such as Sports City,  Jumeirah Village Circle, Jumeirah Lake Towers, etc. that are always consistently occupied and guaranteed to provide consistent income.