Investing in rental properties in Dubai is a brilliant idea for both resident and international investors. The crown jewel of the Emirates, Dubai is known for its world-class infrastructure, booming economy, high property prices, favorable tax climate, and very high rental yields.
So, if you plan to rent out property in Dubai, you’re on the right track. But how do you ensure consistent high rental yields year over year? We’re here to help! In this guide, we’ll share some golden tips on how to maximize rental income in Dubai and achieve a 20% yield.
1. Find the Right Location
Dubai’s property market is booming, and finding the right location is key to high rental yields. Here are the key things to consider when choosing a location for your rental property.
- Traffic flow
The location should be easily accessible to tenants and be in demand for years to come. If the location is inaccessible, you’ll lose out on potential renters. Properties in prime locations will fetch high rental income and be in demand for many years.
2. Market Effectively
No matter how attractive your properties are, you’ll earn no money if people don’t know they exist. The solution? Market effectively!
First, you’ll need to list the properties in major listing platforms and ensure your listing description is on point. Pay attention to visuals. Provide high-quality imagery and, if possible, 360-degree videos that will showcase the property in all its glory.
Your property description should be informative but not salesy. Add amenities and facilities in the neighborhood and information regarding future development plans in the area.
3. Implement Pet-Friendly Policies
Pet owners often have difficulty finding hotels and vacation rentals that can accommodate their furry friends. That means a shortage of supply, which creates an opportunity for you.
By accepting pets, you can expect higher occupancy and more money regularly.
4. Invest in Your Property
Investing in your property is one of the most important things you can do to attract renters. Give the property a contemporary look, and it will market itself and fetch you a higher price. Here are some things you can do to maximize your rental income:
- Work on the property’s curb appeal
- Install smart technology
- Invest in quality flooring, furnishing, and appliances
- Deploy energy-efficient devices
- Hire a property management company
For more information on how to invest in your rental properties and maximize your rental yield, check out this Instagram video from our managing director.
5. Perfect Your Pricing
Last but not least, work on your pricing. Conduct a competitive market analysis to determine what similar properties in your neighborhood are priced. Then consider the facilities you’ve added to the property and factor that into your pricing.
Also, ensure your rates reflect the current state of the property market, dictated by the market forces of demand and supply.
To Sum It Up
Dubai has positioned itself as a top investment destination for investors owing to its booming economy, world-class infrastructure, favorable tax regime, and high rental yields. But to earn high rental yields, you may need to work on your properties.
Some of the things you can do to maximize your rental yields include finding the right location, marketing effectively, implementing pet-friendly policies, maintaining your property, and perfecting your pricing.