Property Management Services in Dubai

Buying a flat or a house in Dubai always represents just the beginning of a long journey for an investor. Then the investor has to let the property to earn a return on the investment. Luckily, property management companies are here to help deal with the mundane household tasks.

• What Does a Management Company Do?
• Cost of the Services of a Management Company
• How Do You Formalise Interaction with the Management Company?
• In What Cases does a Management Company Contact the Property Owner?
• What a Management Company May Not Do
• Top 10 Property Management Companies in Dubai

What Does a Management Company Do?

When an owner hires a certified company to manage their property, they endow this company with various powers. From that moment on, the management company acts on their behalf. The list of their services includes:

• Valuation and advertising. Once a management company is assigned control of a flat or a house, they conduct market research of similar properties in the vicinity, determine the approximate rent and run an advertising campaign, arranging professional photo shoots or videoing of the property and placing information in property databases.
• Property inventory. This is a very important part of the management company’s work. Managers determine the state and contents of a property and compile a full description. An inventory is conducted every time tenants move in or out. This protects owners from any damage to their investments and guarantees a professional report that can be cited by both parties in case of a conflict. If tenants decide to move out, the company inspects and accepts the premises. Where necessary, the company repairs and services the property before new tenants move in.
  
• Tenant selection. Representatives of the management company check applicants and accompany them during property viewings. A manager can even draw up and sign a tenancy agreement on behalf of the owner. At the end of the tenancy period, the management company extends the lease for another term or handles the departure of the tenants.
  
• Acceptance of rent. Managers also handle organisational issues associated with the period when tenants move in. They accept rent from tenants by the deadline specified by the agreement, transfer the payment to the owner or credit it to the owner’s account in a UAE bank. The management company deducts a commission (management fee) for its services from the tenancy payments. This fee can be deducted on the transfer of each payment or once a year.
  
• Property maintenance. The functions of the management company also include the connection and disconnection of utilities, the handling of any technical issues, property maintenance (for an extra fee), the payment of utility invoices and annual service charges. Some of the bigger property management companies have online apps where tenants can submit maintenance requests via their phones and owners can approve requests and pay, using a wallet on the app.
  

• Legal advice. The management company advises property owners on many issues, including the nuances of the tenancy agreement, its extension or termination, rent increases, etc.
• Interaction with property developers. Even if an investor buys a property still under construction, the investor can transfer it immediately to a management company. In this case, the management company is also responsible for accepting the property from the property developer and making payments on behalf of the owner. They also oversee the elimination of defects should any be found at the time of the transfer of the property.
  Incidentally, the property developer must eliminate all the defects for free. However, the property must be inspected before the expiry of the warranty period.
• Insurance and registration. The management company also insures the property and registers the tenancy agreements in the Ejari system which is a mandatory condition in Dubai.
  

The owner and the management company may negotiate a shorter list of services if necessary.

Cost of the Services of a Management Company

Most companies in Dubai charge between 5% and 10% of the rent, with the majority insisting on the upper limit of this range. If an investor transfers several properties for management, the fee will be lower

How Do You Formalise Interaction with the Management Company?

The relations between a property owner and a management company are formalised in a contract listing the properties (flats, houses or other premises) being transferred for management, and the powers granted by the owner to the management company. The contract also stipulates the fee of the management company.

Under the law of the United Arab Emirates, only a company with a valid licence can manage properties. You can check whether a company has such a licence on the website of the Dubai Real Estate Regulatory Agency (RERA).

In What Cases does a Management Company Contact the Property Owner?

Management companies will not bother owners for minor incidents. Usually, they will only contact them in extreme cases, for example, when they need the owner’s consent to repair the property. In this case, the management  company provides the agreement with the contractor and the cost estimate for the owner to approve.

What a Management Company May Not Do

• Increase the rent at any time. The permission of the RERA is required to increase the rent. Dubai Land Department regulates all price increases, depending on current market conditions. If a rent increase is authorised, it can only be implemented not more than 90 days before the expiry of the tenancy agreement. Furthermore the tenant must be notified in advance that the agreement is being extended on different terms.
• Evict the tenants at the owner’s request. If the owner wants the tenants to vacate the property, the management company must notify the tenants 365 days in advance. There should also be a good reason. For example, if the owner plans to sell the flat, if the tenant is late in making payments, or if the property is now the only place of residence of the owner.
  

Top 10 Property Management Companies in Dubai

There is a significant market of property management companies in Dubai. We have selected the top 10 most experienced companies.

1. The Property is a company offering a full range of turnkey services. With more than 10 years of property management experience, The Property has developed a property management concept based on transparency and the delivery of high-quality services which guarantee the owner the maximum return on property ownership. The Property also provides real-time access to financial reports.
2. BSO is a company with many years of experience in residential and commercial real estate. BSO has the best property lawyers in Dubai. The company offers a variety of property management services, including tenant due diligence, maintenance, tenancy management, rent collection, and dispute resolution regarding the rent with the minimal involvement of the landlord.
3. Asteco is a well-known property management company offering services not only in Dubai, but also in Abu Dhabi, Sharjah, Jordan and Saudi Arabia. Its notable clients include Alain Properties, Abu Dhabi Finance and Al Abba Group. The company has won several International Property Awards.
4. Provident Estate is an ISO certified real estate agency offering property services and consultancy to potential buyers. The company’s international team speaks more than 20 languages. Provident Estate won the Best Property Website award of International Property Awards. 
5. Better Homes, founded in 1986, remains one of the leading Dubai property management companies. It provides property services throughout the UAE. Currently, the company manages more than 5,000 properties. Its services include tenant due diligence, financial management and maintenance.
6. Yallrent specialises in short-term tenancies of properties available on well-known aggregator websites, such as Airbnb, Booking.com and TripAdvisor. The company has a 24/7 emergency hotline available both to owners who have questions or problems and tenants.
7. Key One Properties also specialises in tenancy property management. Their service list includes a 24/7 hotline, free consultations at home and online payments. Some services (property photography, the organisation of viewings and handover of the keys) are provided for free.
8. Binayah has been on the market since 2007. It provides a full range of management services. The company’s employees are fluent in many foreign languages which makes it easier for them to work with clients from other countries.
9. Deluxe Holiday Homes was licensed by the Department of Tourism and Commerce Marketing (DTCM) in 2015. It is one of the leading companies in the management of short-term vacation rentals in Dubai. The company manages over 350 furnished rental flats  and luxury villas and enjoys the trust of guests and landlords as evidenced by reviews on Google and social media.
10. West Gate Real Estate has been around since 2005. It offers a full range of management services including tenant search, registration with DEWA and EJARI, rent collection, property dispute resolution and full property marketing.

In a Nutshell

You can delegate almost all your property concerns to a property management company in Dubai (from the acceptance of the flat to the search for tenants). The key is to remember that the company must be certified.

Cover photo: Clarissa Carbungco (Unsplash)