Top property management companies for renting homes in Dubai: who are they and why are they needed? – ZAWYA

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Dubai attracts many investors and entrepreneurs from around the world, and real estate investments are traditionally considered the most reliable. Due to the surge in apartment purchases in Dubai in recent years, the demand for property management services has significantly increased. The head of Colife management company Ilnara Muzafyarova shared that the number of property owners, who rent out their apartments with help from the company, has increased fourfold for last year.

Why property investors in Dubai need a management company

Buy/sell, rent/lease residential &
commercials real estate properties.

Property management companies in Dubai assist owners of rental apartments in officially leasing out their properties. Each company holds a special license, without which engaging in the rental business is simply illegal. In addition to actually profiting from renting out a property independently, the owner must:

  • Continuously analye the market and make changes to the property or offering to remain competitive
  • Always be in the city to lease the apartment in the short term during periods of reduced demand
  • Monitor the condition of the apartment, prepare it for new tenants, conduct repairs, address emergencies, and so on.

With a property management company the owner can delegate a significant portion or all of their apartment-related responsibilities. Such companies typically handle tenant search and placement for owners’ apartments. Additionally, they may offer services such as preparing the apartment for rent, addressing household matters, handling bill payments, and more. For example, at Colife, we take on all responsibilities related to the apartment, its rental, and the tenants, leaving the owner only to enjoy the profits.

Currently, there is a wide variety of property management companies in Dubai. With the number of apartments increasing every month and the rental yields being high, the demand for management companies services is also on the rise.

“The most crucial aspect for a property owner when selecting a property management company is trust in its operations and income. Therefore, attention is usually given to the brand’s reputation, client reviews, rental options and timelines, and profitability calculations,” told Vyacheslav Kuznetsov, Sales Lead at Colife Dubai.

  • Dubai property management companies offer to owners

Experts from Colife have analyzed the operations of the top 20 property management companies in Dubai.

On average, such services charge owners of real estate in Dubai a commission of 20%, and the market’s minimum rate at the moment is 15%. Additionally, clients are typically offered two collaboration options to generate income:

  • Owners receive a fixed monthly fee (for long-term rent).
  • Owners receive a percentage of the profit only (for short-term or daily rentals).

In many agencies, owners bear the costs of repairs and furnishings if the contract is not long-term. However, 30% of the analyzed property management companies exclusively deal with short-term rentals, which does not guarantee owners a steady income.

Most property management companies in Dubai lease owners’ properties through advertisement boards. Yet, there are those that generate their own client traffic due to the reputation of their brand, presence on social media, and partnerships with media personalities.

Let’s explore how leading property management companies in Dubai operate

  1. Better Homes — Established in 1986, the company has 5 branches in Dubai and Abu Dhabi. It offers its clients a choice of three property management tariffs: Silver at 6% commission, Golden at 8%, and Platinum at 10%. The choice of tariff depends on the additional services included in the contract price, ranging from repairs to full support. The company’s advantages include its many years in the market, boasting over 750,000 clients. Better Homes has sold more than 30,000 properties and currently manages 8,500 units.
  2. Etagi — the company has been in the real estate market since 2000 and ranks 8th globally in terms of transaction volume among real estate agencies. Its Dubai branch opened in 2022. For owners of income-generating properties, Etagi offers two collaboration options: short-term and long-term rentals. In the former, owners prepare the apartment themselves, and the management company pays them only a percentage (9%) of the rental income. For long-term rentals, the company invests in repairs, pays monthly rent to the owner, and provides analytics on the property. In this case, the management company charges a 26% commission for its services.
  3. Haus & Haus — established in 2013, is a property management company specializing in large apartments (2 or 3 bedrooms) located in the central areas of Dubai, including Downtown, DIFC, Business Bay, Dubai Marina, and Palm Jumeirah. The company applies a 20% commission fee for its services.
  4. Suite.stay — operating in the market since 2018, the company focuses only on short-term rentals, charging a 18% commission and 5% VAT on the operator management fee. Owners have to bear the cost of apartment preparation, but Suite.stay provides the services of its designers for free. Another advantage is the company’s dedicated app, in which owners can track all bookings, calculate income, and see tenant reviews.
  5. Mira Homes — with over 10 years in the real estate market, Mira Homes in Dubai primarily collaborates with developers for property sales. They charge a 19% commission for management contracts but exclusively lease properties for short-term rentals. If a client wishes to find a long-term tenant for a purchased property, Mira Homes can only assist in finding a tenant.
  6. Frank Porter — established in 2020, an official partner of DET Visit Dubai. The company provides a comprehensive property management service, focusing on short-term rentals. Services include styling of apartments, registration and licensing with DET, global booking support, an owner’s mobile app, 24/7 guest support, and check-in/check-out. Frank Porter charges a 17% commission for its services.
  7. UpperKey — Founded in 2010, the company specializes in offering rental guarantees, insurance, and Airbnb concierge services. UpperKey has two collaboration options for apartment owners: a fixed monthly rent (similar to long-term rentals) or remittance of the actual income to the owner with a 15% commission to UpperKey.

Colife is an international service for renting homes, leasing, and investing in real estate. We operate on a co-living model and use modern technology to connect exemplary tenants with the best apartment owners. Colife has been in the real estate business since 2018 and we opened our Dubai branch in early 2022. Currently, we manage over 200 properties in the UAE.

Colife offers property owners comprehensive management services: interior design and renovation, professional rental listings, access to our own loyal tenant base, tenant search across popular platforms, move-in and move-out services, essential household items in apartments, tenant support (handling everyday issues, weekly cleaning, events), and real-time property management through an online portal. We work with both short-term (20% management fee) and long-term (only 10% management fee) rentals.

“We don’t try to compete on price with other companies. Instead, we focus on making our clients’ properties more attractive due to our large loyal audience and extensive rental experience. Before managing properties, we honed our expertise in rentals.

Our goal is to offer tenants more than just another rental apartment. People today want to feel part of something real. We focus on meeting these needs through our services and the Colife Community, offering spaces for self-expression, creativity, networking, and socializing. Our community is unique, mainly consisting of young professionals looking for like-minded individuals. We aim to unite ambitious young people with similar life views. Notably, many of our employees are part of our community. We engage in activities together, building trust and understanding our audience better.

This approach helps us retain clients, minimize vacancies, make properties more attractive, and achieve higher rental rates, hopefully making our clients happier,” shared Ilnara Muzafyarova, CEO of Colife Global.

Colife’s experience shows that creating an open and supportive community can benefit business:

  • We have a significant customer base thanks to our active presence on social media. Our tenants generate user content on their own in our stylish apartments, so we don’t really need to invent promotional content. With over 150,000 followers on social media we generate consistent revenue for property owners even in low seasons;
  • The Net Promoter Score (NPS) for Colife is 70% among property owners, and they rate our service at 95%.

Certainly, for many business leaders, such an approach may seem unconventional. Yet, the rapidly expanding real estate sector in Dubai underscores the vital role of property management companies. As international investors focus on Dubai, such companies serve as the cornerstone, ensuring streamlined property operations from tenant procurement to maintenance. Trust remains crucial for property owners, highlighting the importance of management companies reputation.

Colife Press office

This post was originally published on 3rd party site mentioned on the title of this site

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