18 October 2019
Dubai: For first-time buyers and landlords looking to add to their real estate portfolio, buying-to-let is an attractive option in terms of potential earnings.
After all, who wouldn’t like the idea of someone else paying your mortgage for you? From the practical side of things, you can also save a lot of your time and effort if you are spared the task of having to find reliable tenants who will treat your property with respect.
When investing in a buy-to-let property, learning how to set both your short-term and long-term goals will help.
Here are some top buy-to-let tips to consider before purchasing a property in the UAE:
If you know someone who already has experience with buy-to-let property investment, get his or her opinion on what to look out for.
A first-hand account on the positive and negative side of things can be invaluable on things such as community and service charges. The more research about the market and property you do from the start, the better chance your investment paying off.
Location, location, location
Don’t let the fact that your property comes with a ready-made tenant trick you into neglecting the A, B and C’s of investing in real estate. Where your property is located and the subsequent rental demand should be at the top of this list. Your tenant may well choose to move out one day and you need to be in a position to find a new tenant.
Know your inherited tenants
Before purchasing, you should get to know more about the tenant that you are inheriting with the property. Are they looking to move out soon?
Are they willing to negotiate a better deal for a fixed-term contract? The UAE has rigorous real estate regulations to protect both the landlord and tenant. Get to know your rights and that of your tenant; it can save you trouble in future.
Negotiate the price
Don’t be afraid to negotiate. An existing landlord, who has been renting out the property, may be willing to lower the asking price to get a quick sale.
Whereas families who have chosen to live in their property may not be as willing to lower the asking price as their future plans may be impacted by the value of the sale. Also, as a buy-to-let investor, you are in a strong position to negotiate if you are willing to take on the existing tenant.
The safety net
As a buy-to-let property owner, you need to plan for every eventuality.
Double-check that you have the correct insurances in place and ensure that you know all of the legalities involved in being a landlord in the UAE.