Dubai property rental agencies

[Asad]

I just got to talk to ARY office in Dubai. They proposed First Choice as a good rental agency. ARY is using this agency for renting out their own apartments. The number is 0097-150-5026 185.

[dwzrd]

I could not agree with you more that finding a good serving and customer oriented individuals, agents and/or real estate companies to handle hard earned investments is a daunting and difficult challenge. However, in this situation, it is a dilemma that one has to understand, study & analyze, and firmly decide with well-informed and intelligent information. As one quote mentions, for evil to persist, the good only has to be silent or becomes inert/passive. This forum appears to be serving for the good cause of everybody since information is spread around and transparency is somewhat achieved in a certain level.

On the other hand, for our part, upon finding a reputable and ethical agent that we are satisfied, we should give something back to the society/community by providing reasonable rates for the apartments. In doing so, we create some sort of a balance of service. Good deeds are passed on to other people who may reciprocate the same way in another form to others. This is more fulfilling that moves people towards a helpful and peaceful environment.

In finding good agents, from my experience, you need to know the company service trend and meet with the people serving the customer needs. There are times when the company may be good but finding the company A1 key personnel makes or breaks our customer needs. One has to quiz these agents on our requirements and what if scenarios. We should be prepared with a list to ask and follow our instincts if the answers are given in ambiguity or not satisfactory. Extensive background checks and research eliminates or minimizes painful, non-generating income and costly situations in the foreseeable future.

For one reason or another, I have dealt with the first 4 from the list below, and they provided acceptable service as far as my requirements at that time and with respect to the concerned person I have interfaced. The staff of the first two agencies was commendable and very professional. I am not suggesting or recommending these agencies since I know there may be more reputable agencies out there and the quest for the best should not stop on my account. Also, it is possible that your experience with them may not be that fruitful. Keep an open & alert mind, and I am only providing alternatives and sharing what I have experienced from a handful of their personnel. (Others may have had a bad experience with some of them and it would be appreciated if feedback is provided so as to be noted for everybody).

Sell Rent Dubai Property – Real Estate Properties in Dubai UAE - Landlords
Asteco property Management, Dubai Real Estate,Freehold Propert in Dubai,Abudhabi,Sharjah,Alain,Jordan,Bahrain,Qatar :: asteco.com
Property Management - Better Homes
Our Residential Service - Cluttons - town houses and country homes for sale or rent
Sherwoods Independent Property Consultants
Deyaar

Good Luck and Happy Hunting!

[laguna33p]

dwzrd, thanks for the agents' list, atleast it's a starting point for us non-dubai residents.

[laguna33p]

i got an email today from exclusive re the management they provide (2 pdf files detailing all the services they provide), these are some of the fees they are quoting:

Monthly Costs
This is a guide to your monthly costs should you rent your property on a short term basis.
Prices will vary depending on communication packages and D.E.W.A will vary based on
occupancy.
SATELLITE TELEPHONE INTERNET D.E.W.A GARDENER CLEANING LAUNDRY
AED 150 AED 15 AED 75 AED
500
AED 200 AED 25 per
hour
AED30 per
bed set
SET UP COSTS
COMMUNICATIONS FURNISHINGS GARDEN
INSTALLATION AED 600 TBA TBA
TBA – TO BE ADVISED, please enquire regarding the furniture packages available.
Documentation
We require the following:
1. Copy of first page of Sales Contract
2. Copy of completion certificate
3. Copy of owners passport
4. Copy of representatives passport if third party
5. Authorisation letter from owner for third party
6. Signed Management Agreement
7. 3 sets of keys/ access cards to property
8. Administration Fee
The above are required to register to our Management Services.
5
Service Fees
PACKAGE FEE PAYMENT
Long Term Leasing and
Property Management
AED 300 administration fee
4% of annual rent
Administration fee payable
in advance when listing
property.
4% payable when property
leased.
Long Term Leasing without
Property Management
(rental service only)
NO CHARGE Tenants pay the Fee for the
rental only service.
Short Term Leasing AED 300 administration fee
17.5 % of rental income
achieved.
Administration fee payable
in advance when listing
property.
Deducted from rental income
for each booking.
Furniture Package
TBA – to be advised Payment in advance
Contact us for further details of our Furniture Packages

[eyeC]

hi everyone
laguna33P can you please tell me what you think of your investment in IC is it profitable?the way im caculating its negative income and i didnt include in the calculations management fee so what did i miss that everyone is so sure of
cheerz

[wayneis]

eyeC It depends what your expectations are and definition of Profitable.

It also depends on many variables , if you are the buyer or the seller or the developer or the Real Estate Agent, each will have there own view.

I am in the process of selling have held the property for over 2 and a half years and as an investment for Capital gain its been a fizzer. Nakheel have a lot to answer for.

Compared to other projects in Dubai marketed at the same time International City has been an out right lemon. For example property by Emaar at the Greens was selling for much the same sq ft price only a little higher now a 1 bedroom will sell for between 900k and 1mill K AED same with the Development at The Springs they have shown a 300 % gain. Mine will be around 30% over the same period so do the math.

Thats not to say its a bad investment. If you had purchased in the past 12 months or less you would be realizing the same profit as I am and it would have been a good investment as a short term investment. Remember that there has not been one project yet that on completion has not esculated in value. International City is still a building Zone and construction site. When this is completed (who knows when the exact time frame) the same will happen. I was not comfortable waiting any longer given that other projects will be comming on line in 18 months that will offer a different perspective and be competing with IC.

If you are now in a position to rent and are achieving Rents of 40k to 45K for a studio and 50k to 60k for a 1 bedroom these are great returns around 15%

What has left a sour taste with most investors in theirs project has been the way Nakheelhas treated investors (do not want to deal with you as you are not the building owner) When in fact a big deal was made of IC being a Nakheel Project. The hidden costs have escalated. Maintenance Fees are set far to high for the product being presented.

The Location of the development next to the sewerage plant was not advertised, no schools or post offices or shopping complexes or forbidden city as promoted yet open,the list goes on and on. To me this is another sign that things are not as they should have been.

The ongoing delays in presenting apartments to investors and owner occupiers is not unique to International City, it is a problem Dubai wide, however the manner in which this has been addressed and handled is extremely poor. Nakheel have no idea at all how to treat customers.

As with every Real Estate market you will need to judge the correct timing, given the continued shortage of Rental Accomadation and that projects are never deliverd on time then your investment will continue to grow at International City. Continued projections and predictions from "Real Esate Experts" last year on a over supply of apartments and Property crash in Dubai did not eventuate. As allways position,location and availability and demand are key factors.

My self I would rather take a small profit now rather than the gamble that things will improve at a latter date and invest my money else where in Dubai.

It all depends on your persepective and comfort zone.

[eyeC]

hi wayneis
-eyeC IC as a low risk investment compared to other locations and for that you should expect lower profits.
-i also think if you want to invest in properties you should look at it as along term investment generating cash flow from it for a min period of 5 years.
-regarding IC many ppl from sharjah are starting to shift to IC
as the rent is almost the same and with the advantage of having less time spent on the road if you are working in dubai.
- i agree nakheel need to improve more but looking at the large scale of the project you ncan still give them half marks for what they have done
-i still expect a drop in the market by 2009 and i also think it will nto have an effect on rent prices in IC and for that reason i said IC is a low risk investment
- i think your rent expectations are abit high studio flats are offered for 31000 and if you want to rent it faster you should go lower say 30000 1Broom is gfoing for 41000 freind of mine rented for this price
-i did a detailed calculations the other day regarding the profetablity of IC and i based my caclulations on (20,000AED net rent) for a studio flat in IC and its still better investment than many other countries around the world.
i think the price of a studio flat in IC will be 370,000AED max and 500,000AED for 1BR which is almost 30% increase in per foot prices if you have bought last year
so almost 30% profit in 1 year is a good investemnt
i think if you want to reduce your rsik even more buy studio flats only it will always be rented when bad days come
-i think nakheel is deliberately slowing down the construction progress by making or lets say introducing changes all the time changes slow contractors we call them variation orders you need to approve the new costs and all other related issues change of plans construction drawings etc. and delaying handing over they dont want the project to have a big impact on the market its a huge project and having said this i might be wrong
-its still a good investment and if you think of it as a long term investemnt it will be even better
-im trying to structure a deal to buy 5 studios only as rent generators and without counting price appreciation into my profit

- not all numbers you see in advertised local newspapers are accurate i saw alot of studios offered for sale for even 350,000 dhs but that doesnt mean it is worth that much thats asking price and it goes for rent too
-like to share property investemnt ideas with ppl and im Curious on how ppl come to decide if an investemnt is a good investment what numbers they use?????
have a nice day

[eyeC]

in dubai to deal only with rental/sale properties in IC many ppl i found here looking for such a company might be a good business

[laguna33p]

eyeC, like you say, in this property game you have to think long-term. The rental agencies in the uK charge 10% (some upto 15%) of annual rent to manage properties, so Exclusive seem only to be charging 4% in dubai. I think the real killer is the maintanance/service charge, thats the biggest overhead. I think the only way forward is for the apartments to be rented out straightaway and on a constant basis. If they remain empty for a while, then one will suffer a great deal of loss. That is why I am planning to handover my keys to an rental agent as soon as I have possession.

[eyeC]

hi laguna33p
sorry if i said before 4% management fees in dubai
in dubai they are charging one month rent which will be almost 8%
for IC but then some might set min charge if the rent is low which might end up 10% too.
but the good news is rent is in many cases long term one year or more and since most tenants have to go and register for electricity and water ,internet &tel lines install a tv dish most of them will prefer to stay long time and since rent prices so far are going up it will be cheaper for the tenant if he stays in the same flat(thats why i recommend ppl/tenant to pay for the electrcity bill) more stable they will be.
the maintenance charge for IC is high i agree
you ahve the right to increase the rent by 7% yearly if you desire
cheers