Rental businesses have been a very attractive business venture mainly because although not everyone can afford to buy property, most people are able to rent it. There are two main ways in which one can start a housing rental business in Dubai and these are; construction and buying then allowing other to rent your room. You can also rent your bed space, there are a plenty of peoples searching for bed space in Bur Dubai and other areas of Dubai.
Every business needs a reasonable amount of capital to start and Dubai is one of the places where this capital is readily available. One can visit numerous local and international banks that have set up shop in the area to discuss financing plans and loan agreements. For instance, entrepreneurs can visit the Emirates NBD bank which offers an array of products from mortgages to simple loans and get advice on the product most suitable to their needs.
Get conversant with property laws
Dubai is in the process of enacting stricter laws that require both investors and real estate developers to carry out their mandates. This is in response to the recent property bubble that saw the collapse of rental income in recent years. Persons looking to establish property rental businesses should first acquaint themselves with the relevant laws that will affect their business and not just blindly sign contracts.
Although this method is considered very involving, it allows an entrepreneur to monitor every aspect of the housing project. The costs of materials has been falling following a decline in the price of oil. The UAE government further spurs construction projects in the country by capping the price of building materials such as a bag of cement which costs Dh16 a bag.
Purchasing to sublet
Purchasing an already built rental property is a method considered hassle free as you do not have to be involved in the construction process. In fact, many successful business persons purchase rental properties when their prices are below market value. Alternatively, one can hire the services of investment analysts who will be able to conduct a market research and forecast the future value of the property. If they forecast a rise in the value of the property in the next few years, then the housing units would be the right project to invest in.
In Dubai, the cost of living is generally high as the place is filled with many nationals and expatriates. Therefore, when establishing a rental property, it would be important to set a price that is consummate with the market. In 2013, the average price of an apartment was between AED 2000 to 6000 per month. One could rent a one bed roomed house at AED 40,000 to 90,000 in a year. A lower price may cast doubts over the quality of housing that you have and an overly expensive apartment may leave you with no customers.
Once you have purchased or constructed your rental property, do not wait for potential customers to come knocking. Dubai is a highly competitive market and customers need to be wooed. It is advisable to contact local advertising agencies or advertise your property at following websites.