Qualities To Look For When Hiring a Property Manager or Property Management Firm

 

best real estate agency in dubai riseup holding

Commercial real estate owners can benefit greatly from hiring property managers, but how to know who is right for the job? There are countless property management companies in Abu Dhabi, which is why choosing one can seem like a daunting task. There are, however, some telltale signs and attributes that make reliable and efficient property managers stand out from the rest. Knowing what qualities you should look for in a property manager can make the selection process much easier and smoother. So, while interviewing potential candidates, check if they possess the following qualities.

Organizational skills:

Do they seem organized? Most of the top property management companies in UAE manage everything from vacancies, showings, rental activity to rent collection, maintenance, and repairs. Without impeccable organizational skills, a property manager will never be able to fulfill his or her duties. To do all the work in an organized manner, property managers need to be comfortable using databases, spreadsheets, and various other project management tools.

People skills:

A large chunk of a property manager’s work involves dealing with people. Servicing existing tenants, showing units to potential tenants, and supervising the maintenance crew are only a few aspects of it. Without exceptional people skills, doing all that efficiently on a regular basis is simply not possible. Property management companies in Abu Dhabi put a lot of emphasis on hiring professionals who are good with people and that includes dealing with clients as well.

Time management:

Managing a commercial property involves several moving pieces. A property manager is responsible for every little thing associated with the property. A typical workday may include meeting five potential tenants and showing them the units, fixing the pool pump or the toilet that suddenly went bust, and taking care of other miscellaneous stuff. A property manager needs to be ready to deal with the necessary, the known, and the unknown. That is why efficient management of time is a huge priority for the property management companies in UAE.

Ability to work with modern technology:

Although real estate has not been too affected by disruptive technology, the sector has seen some significant changes. For example, these days, property listings are promoted and distributed digitally. Invoicing and collection, from both the rent management and vendor perspective, are often handled through various apps or programs. Although property managers may still need to maintain hard copies and paper systems, they cannot be solely reliant on it. The leading property management companies in Abu Dhabi are fairly tech savvy and they have kept up with the changing times.

Marketing skills:

Did you know that hiring property management companies in UAE also means you get marketing pros by your side? Marketing is a huge part of property management, and the professional you hire should know where to post property listings to attract ideal tenants. They should also be able to promote your property in the right manner on platforms that will generate the best responses. If you have several apartment units or a vacation rental in a touristy resort area, only being listed on a website may not do the trick. Your property manager will need to come up with a solid marketing strategy.

A strong network of vendors:

When you hire one of the reputed property management companies in Abu Dhabi, you get access to a wide network of vendors and contractors. Because property managers are responsible for overseeing the upkeep of the property, they need to have a strong network of handymen, tree care service, pool service, carpet cleaning service, repairmen, plumbers and so on. Even if you hire a professional who does not already have a network, they should be able to build one quickly. Furthermore, they should be able to evaluate and negotiate costs with the vendors and contractors.

Responsiveness and understanding:

Property management companies in UAE can make your life easy by handling all kinds of queries related to your property. Since they will handle the marketing aspect, they will also need to be responsive to inbound leads. A property manager who vigorously advertises on social media but does not respond to messages or queries in their inbox is not the right person for the job. An ideal property manager is also good at understanding what a person needs, identifying potential solutions to problems, and walking people through them.

Proactive attitude towards security:

A good property manager is never callous about security. Gone are the days when security measures simply involved bars on windows and deadbolts. Today, tenants may enquire about doorbell videos, smart locks, proximity sensors and other modern security technologies. A property manager should know about the various security options and they should also be able to explain what measures they are using and why. Most of all, a property manager should keep the building secure and make the occupants feel safe.

Wrapping up

A good property manager has several great qualities. While some of these attributes are innate, others are acquired through years of work in the industry. When interviewing potential candidates, you should ask questions that will address these issues or at least help you get a sense of whether or not they possess the qualities you are looking for. Aside from the attributes we mentioned above, a property manager should also be flexible, ingenious, professional, and patient.

If you are looking for property managers who possess all these qualities and more, check out RiseUp, one of the leading property management companies in UAE. With years of experience in managing commercial properties, RiseUp has both the manpower and the resources to help you. The professionals here at the company have worked with real estate investors from around the world. That is why they have a unique understanding of what you need when you give them the responsibility of managing your investment property. No matter what type of property you own, if you need experienced and efficient property managers, get in touch with RiseUp. Give th

The Time to RiseUp – Bringing Prominent Brands to Dubai Mall

Commercial Property For Rent

The Time to RiseUp – RiseUp Real Estate Helps Bring Prominent Brands to Dubai

Over the years, Dubai’s continued economic success has gained the attention of the world. The lure of this city is so strong that people from different parts of the globe come here to build their careers and lead happy lives. So, it is no surprise that big brands want in on the action too. With impressive infrastructures such as The Dubai Mall, the city offers excellent opportunities to global brands that want to expand their operations. RiseUp, one of the leading real estate companies in Dubai, helps businesses find the perfect commercial property for sale so that they can penetrate this fiercely competitive market with relative ease.

RiseUp in helping big brands to set up shop in Dubai

A lot goes into expanding into a foreign country and setting up shop. One of the common aspects that businesses struggle with is finding the ideal commercial property for rent or sale. That is why having a reliable and reputable company such as RiseUp makes the process much smoother. Home of the best real estate agents in the UAE, RiseUp has recently closed a deal with a prominent Italian brand and helped establish their first commercial operation in Dubai. This famous Italian watch brand trusted RiseUp to find the perfect commercial retail space, and RiseUp delivered!

best real estate agency in dubai riseup holding

This deal was closed by our very own property expert Dyah Lesiana. You may read more about her achievements here.

Contact Dyah today for all your property needs: dyah@riseupholding.com

The Dubai Mall – the ultimate location for international brands

When choosing commercial property for sale, most brands want a prime location. It does not get more “prime” than The Dubai Mall. As part of their most recent deal with the renowned Italian watch brand, RiseUp has successfully acquired a rental commercial retail space at The Dubai Mall. Penetrating into Dubai’s prime real estate sector is not easy. Only a real estate firm with years of experience, a solid reputation, and a strong network can make it happen. With an unbeatable combination of all three, RiseUp is the perfect real estate partner that any international brand can want when looking to expand in Dubai.

The Dubai Mall is home to some of the best brands in the world

Finding commercial property for rent at the largest mall in the world is a huge deal for a brand. Brands from all around the world are vying for a spot at such a prime location that attracts all the tourists and shoppers that the city receives every day, month, and year. There are over 1200 different outlets at The Dubai Mall, which means all these domestic and international brands are there under one roof. From fashion, footwear, perfumes, and clothing, to electronic, home furnishing, and various other luxury stores have found home at the world’s most famous shopping mall.

Finding the perfect commercial property for sale or rent in Dubai may be challenging, especially if you have your heart set on a prime location such as The Dubai Mall. That is why you need experts such as RiseUp by your side. Since its inception, RiseUp has helped numerous renowned brands find their ultimate location. To know more about how they can help you, get in touch with them today!

Real Estate Portfolio Management In Dubai | What Do We Say?

Portfolio Management Services in Dubai

Hiring a unique portfolio management company Dubai could be the secret to your success as a real estate investor in the city. If you have never worked with one before, you might think that they are just like a financial asset manager. However, in real estate, portfolio managers have a different role. In fact, real estate portfolio management is radically different from managing assets such as mutual funds, bonds, equities and so on.

Typically, equity managers need to research firms and manage the probability of them fulfilling their articulated strategies. However, portfolio management services in Dubai are responsible for defining and taking advantage of opportunities in the real estate market. From managing risks and allocating assets to handling transactions and dealing with the land and structures on it, real estate portfolio managers do it all.

Therefore, unlike traditional money managers, real estate asset managers focus on optimizing the value of your investment properties. In fact, portfolio managers function a lot like corporate CEOs in that they are running a facility much like a company. In contrast, money managers typically know of stocks of a certain sector or field, but they do not involve themselves in the company operations themselves.

What can a unique portfolio management company Dubai offer you?

Companies that offer portfolio management services in Dubai typically have teams of experts who are trained much like other fund managers. The professionals use their skills and experience to ensure portfolio performance. In some cases, portfolio managers are rated based on their ability to produce appropriate risk-adjusted portfolio diversification and returns through various means such as asset selection and allocation.

Furthermore, a unique portfolio management company Dubai can add value by using your capital most efficiently. They will also keep you informed through cash flow forecasting and various other performance measurement techniques. In that sense, real estate portfolio managers create and execute property-level strategies for the assets they are managing.

How do portfolio managers build strategies for investment selection

When you hire portfolio management services in Dubai, the company or professional will be responsible for selecting and allocating assets. They do it not just by gaining an understanding of the market dynamics, but by also being experts in property fundamentals. Real estate portfolio managers are trained and educated in the local market as well as in the various commercial land uses such as single and multifamily residential, retail, hotel, industrial, and office.

To produce sufficient risk-adjusted returns, ensure diversification, and beat the market, portfolio managers in the real estate sector need to place their bets on local and regional property markets. When handling multiple-asset portfolios, they also have to focus on building the correct property mix. Because of this, a unique portfolio management company Dubai may concentrate on specific property types of regions. Some portfolio management companies also devise their teams and senior employees by land use or regions. They do that to make sure that market opportunities are identified and translated into the correct asset selection and origination.

How does real estate portfolio management work?

At the core of efficient real estate portfolio management, you will find experts who add value by executing various property-level strategies. Companies that offer portfolio management services in Dubai have in-house teams made up of experts who specialize in regional market fundamentals or certain property types. These experts are also responsible for optimizing and increasing the value of the properties in their custody. Besides facilitating transactions and providing information and suggestions on local prospects, portfolio managers also maintain and monitor proeprty-level performance.

A unique portfolio management company Dubai will approve budgets and manage expenses on your behalf. They will also focus on increasing value by managing the rent or lease on your properties. You might feel that these are simple enough tasks that you can manage on your own. However, in reality, the process is not as black and white as it seems. It involves a complex function that requires your full-time attention and dedication. Failing to do it efficiently might reduce the value of your portfolio significantly.

If you want to make a sustainable income through renting or leasing your properties, you would have to find and execute the best possible opportunities for each of your investment properties. To achieve this, you will have to conduct a thorough search and facilitate a program that fits perfectly with your portfolio management strategy. Of course, you would need to devise a fool-proof portfolio management strategy first. You would also have to make sure that any changes you bring should not disturb your existing tenants or your relationship with them.

Why hire RiseUp for portfolio management needs?

If you want the best portfolio management services in Dubai, RiseUp is the answer! Being one of the leading portfolio management companies in the UAE, RiseUp is best suited to fulfill your needs as a real estate investor. We have a team made up of highly skilled and professionally trained portfolio managers who will manage your real estate portfolio and also optimize the value of each one of your assets.

Renting and leasing properties can involve a lot of negotiations. Handling it poorly may cause your relationship with your tenants to get strained. That is why having RiseUp’s expert portfolio managers can save you a lot of trouble. When you have them by your side, you can rest easy knowing that the job will be handled smoothly without you putting additional efforts.

Managing your portfolio also means that our portfolio manager will be responsible for your investment decisions. Since RiseUp has its own investment advisors, you can get the best guidance when choosing properties. No matter what your goals are, your portfolio manager will work towards achieving them. In the meantime, you can focus on some other aspect of your work or life.

There are countless benefits to hiring portfolio managers from RiseUp. Besides getting the best professionals that the industry has to offer, you also get portfolio management services at fairly low prices. To know more, give us a call or drop us an email today!

Benefits of Hiring a Property Management Company to Oversee Your Commercial Real Estate

dubai property management fees

Owning commercial properties in any of the big cities in the UAE can be financially rewarding. However, it takes a lot of effort and dedication to succeed as a commercial real estate owner. You may be great at investing, but if you fail to manage your properties, you will incur heavy losses. That is why you need to hire one of the top property management companies in Abu Dhabi to manage and oversee your investment property. Property management is a full-time job, and if you cannot commit to it, you should let professionals do it for you. Besides, there are numerous benefits of hiring a property management company. Here are a few that should convince you:

They will help you find high-quality tenants

Finding and screening tenants may be one of the most complex and time-consuming tasks that you will have to do as the owner of a rental property. Furthermore, if you do not have much experience in it, you may end up choosing a bad tenant. Bad tenants may delay or skip payments, damage the property, or carry out illegal deeds at the property. Worst of all, getting rid of them is harder than you may think. The top property management companies in Abu Dhabi have verified and reliable screening process that helps them find tenants who will:

  • Pay rent on time
  • Rent long-term
  • Minimize property damage
  • Not cause problems

An experienced property manager with years of experience in the industry can quickly identify red flags and choose tenants accordingly. They can help you avoid rental scams, discrimination lawsuits, and many more hassles. You can even find a company with significantly low Dubai property management fees.

You can avoid facing legal problems

Owning commercial real estate can be a bit more complex than owning residential property. There are several legal obligations that you need to know about and fulfill. Hiring one of the top property management companies in Abu Dhabi means you do not have to worry about all that. Then there is the issue of bad tenants. We cannot overstate how much pain a single bad tenant can cause. They are also a great liability both legally and financially. A property manager will take care of the following aspects:

  • Running background checks on potential tenants
  • Facilitating tenant evictions
  • Signing and terminating rental or lease agreements
  • Collecting and handling security deposits and rents
  • Performing unit inspections and ensuring safety
  • Keeping the property in good shape

The best part is that the money you will save with their help is the money you can use to pay Dubai property management fees.

Your properties never remain vacant for too long

Filling vacancies is one of the most crucial aspects of managing a property. You can hemorrhage money by leaving your commercial property vacant for too long. No property owner wants that, but it can happen if you fail to find suitable tenants on time. A property manager who works for one of the top property management companies in Abu Dhabi will take care of the following tasks to make sure that all vacancies are filled right away:

  • Determine the ideal rent rate: If the rent is too high, finding tenants can be difficult. If the rent is too low, you start losing money. Setting the right price requires insight into the local real estate market, access to professional rent calculating tools, and data on similar units.
  • Prepare the property for rent: Sometimes, you need to give your properties a makeover to appeal to the potential tenants. However, spending money willy-nilly won’t get you the desired outcome. Professional property managers know just what cosmetic improvements your property needs to attract tenants.
  • Promote your property: Marketing is just one of the many talents of the top property management companies in Abu Dhabi. They have run numerous ad campaigns for the properties they manage, and they know just how to promote your property on the right platforms. Moreover, since they do it a lot, they might be able to get you competitive rates for running ad campaigns.

You get a host of personal benefits:

You can enjoy several great personal benefits by simply hiring professional property managers to oversee and manage your commercial property. When working with one of the top property management companies in Abu Dhabi, you can have:

  • More freedom: Hiring a property manager gives you a unique freedom. You do not need to live near your property, you can travel anywhere anytime without worrying about taking care of your source of income, and you never have to conduct tenant screening or property inspections. You can even expand and diversify your investment portfolio by getting properties in different locations.
  • More free time: Time is money, and you can earn a lot of it if you do not spend your time micromanaging your investments. Hiring a property manager means you have plenty of time to focus on your investment career or something else.
  • Much less stress: You need to have a high tolerance for stress to be able to manage a property on your own. Doing it by yourself means you need to be ready for late-night emergencies, chasing down payments, evictions, paperwork, finding contractors and fixing damages and so on. You can avoid all that stress simply by spending Dubai property management fees to get a professional.

These are just some of the many benefits of hiring a property manager for your commercial properties. If you want experienced professionals for the job, check out RiseUp, one of the leading property management companies in Dubai.

With years of experience in the industry, RiseUp is the best candidate if you are looking for property managers who can work efficiently on their own without supervision or guidance from you.

To enjoy the best benefits of having professional property managers, get in touch with RiseUp today! Give them a call or drop them an email with your query.

WHAT DOES IT TAKE TO BE A SUCCESSFUL REAL ESTATE AGENT in Dubai?

REAL ESTATE AGENT in Dubai

What does it take to be a successful agent/agency in the Dubai real estate market?

As of 2016, there were a total of 5,933 real estate agent in Dubai active in the market with a total of 2,285 registered offices as per DLD report. Currently on Property Finder, there are a total of 2,672 active agents and 969 active companies in the market as of September 2020. Sure, that doesn’t mean all the agents or companies in the market are on Property Finder, so let’s consider another 20% agents and companies to be operating within the real estate market. As per our best guess, there would be about 3,200 active agents and about 1,160 active companies in the market. That means for every 2.75 agents, there is one real estate company. Odd metrics, right? Well, one of the reasons for this is that anyone and everyone who thinks real estate is an easy business feels obliged to open up their own company and while some may succeed, the majority of them do end up failing.

I’d go as far as saying that perhaps from this list of active agents or companies, only about 25% are well educated about the laws and regulations of the real estate industry and performing to their true potential. Let’s not talk about the 75 percentile, let’s talk about the 25% who turn out to be successful. What does it take for them to taste success?

The job of a real estate agent in Dubai is not easy, period. I’m not saying any other job is a walk in the park, but for a real estate agent, like any other sales role, it’s all about the income they are able to generate which dictates their take-home per month. The barrier to entry for this role is very low, which results in many aspiring individuals mis-placing their perception of this role as a money-generating machine which requires limited input and knowledge. Majority of the entrants into the field don’t have basic knowledge in mathematics, contracts or legalities. While the most important aspect of this field is to understand how to deal with clients which one can only learn on the job or through the training provided by their company, clients appreciate agents who have their basic educational principles in place:

●  Understand the basic calculations of investment, rental yield, service charges, mortgage payments, gross and net income; so you can guide your clients better.

●  Understand how to draft and review contracts that your clients are signing as a lot of bad investments can be credited to weak contracts.

●  Understand the legality of transactions, how to best protect your client interests and what fail-safe procedures to implement in case something goes wrong.

These are some of the basic principles which are so vital in this field, but are so easily ignored by that 75 percentile of agents. Our basic training starts off with these elements and once the agent has gained strength in these principles, they are better prepared to be out in the field dealing with clients. Other important elements which I believe make up a successful agent include:

●  Understanding which clients to focus on and how to negotiate with them

●  Understanding how to determine ideal investment or end-user property

●  Understanding the difference in dealing with developers and secondary sellers

●  Understanding how to structure deals for your clients

●  Understanding how to best carry out viewings and property showings

●  Understanding how to best approach clients to obtain exclusive listings

Module 1:​ Mathematics
I’m going to give you simple advice, and I hope this sticks with you. If you like to keep a mile distance between you and mathematics, then stay miles away from a career in real estate. I’m not saying you need to be Einstein to excel in this field, but if you don’t have your basic math fundamentals in place, then either spend time and effort to learn, or please choose a different field. On a daily basis we have to crunch numbers to determine how is the rental yield on a property to pitch to the client, what would be their mortgage payments on the purchase, what is the ideal price per square footage they can sell their property at, how to determine the fundamentals of construction space on a plot of land. Be it the smallest leasing deal, wherein one needs to show proficiency in advising the client their closing costs; or the largest sale deal, wherein one needs to do financial feasibility for a developer on their target plot to acquire; being able to comfortably carry out your calculations goes a long-way in concluding deals successfully. How to improve on your skills to move up the ladder and carry out bigger deals, well that’s where our training comes into play.

Module 2: ​Contracts
“But it’s the lawyers job to draft and review contracts” – Those used to the Western real estate market. Well, sorry to burst your bubble, but things work differently out there. While the client may lay the burden of reviewing and drafting contracts on their lawyers, 9 out of 10 times it is us as an agency preparing and reviewing contracts for our clients. If you do not know how to work your way around contracts, or think that it’s way below your pay-grade, then bless you! Clients trust you with taking perhaps one of their most important life decisions; we all know what the most important is (quirky slide), don’t you think it is your moral responsibility to ensure they are fully protected to your best capability? Being able to spot wherein there are difficult clauses which go against your client is vital, and you will only be able to improve your skills therein benefiting the client through repetition of contract review and asking yourself “what could go wrong”? How to spot these points and aim to eradicate them to ensure your clients have a smooth transaction, well that’s where our training comes into play.

Module 3: ​Legality
When you enroll into the course to become a certified real estate agent in Dubai, one of the primary modules is legal; but the 75 percentile of agents forget this module once they step out into the real world. Legality around real estate doesn’t only mean which area can a client buy in or how are they protected from their landlords? It also covers how one should ensure a sale transaction wherein the seller has a tenant not willing to vacate and the buyer is an end-user to whom a tenanted property is not beneficial. These and various other aspects along with the ever changing and ever improving landscape of the laws surrounding real estate need to be on the tip of a successful agent. It so happens that clients prior to even transacting with an agent ask for their advice on real estate related matters and if they suspect the agent to not be aware of their subject, then would not think of ever doing business with them. Can you blame them? Would you ever get a surgery from a doctor who is not 100% aware or comfortable with knowing what equipment needs to be used to operate on you? How to better understand the changing landscape of the legalities and keep yourself updated on the critical changes which impact your clients, well that’s where our training comes into play.

Sub Module 1: ​Understanding which clients to focus on and how to negotiate with them
For new agents, the excitement when a client expresses interest is heightened based on the expectation of closing the deal. Without the right filtering mechanism, new agents generally end up spending a great amount of time and effort on clients without closing a deal; which in turn leads to them losing their motivation and thinking each deal client interaction will not yield any positive result. This thought-process can be attributed to the majority of the agents failing in the market and deciding to give up. The best way to combat this is to understand how to qualify your clients so you can focus on the clients who are serious and with whom you have a higher chance of closing deals. This qualification requires putting across questions to your clients to better understand their requirements and also assessing how to best negotiate with them and represent them in order to conclude the deal. This is what we train our agents to start with as sometimes it’s more important to say no rather than saying yes to all clients. Focus, specialisation and quality go a long way rather than concentrating on quantity.

Sub Module 2:​ Understanding how to determine ideal investment or end-user property
When dealing with buyers, one must understand what their target is, and only then can they best source deals for the client. If someone is buying to live in the property, then the locality might hold vital importance, such as proximity to school, shops, restaurants, hospital or kids play area. On the other hand, if someone is buying to invest, then the further development of the community might hold more importance, such as an upcoming metro station, the development of a new mall or planned road connectivity. End users might require the property to be vacant so it’s vital to ensure that the tenant has contractually agreed to move out whereas the investor might be keen on buying a property where the tenant is expected to continue their lease as their target is rental yield. Furthermore, there are various other aspects which need to be considered when determining the client requirements and we ensure our agents are well tuned with these.

Sub Module 3: ​Understanding the difference in dealing with developers and secondary sellers
Dealing with developers is very different as compared to dealing with individual sellers. This is a skill very important for the agents to understand. From the perspective of the sellers, an individual might be more open to negotiation since they are the sole decision makers and not answerable to anyone; whereas the developer might not be open to negotiation as they are a corporation which has its bottom line and are answerable to their shareholders. Understanding this difference is vital to know if the product to offer to your clients should be from a developer or individual. Developer properties are available to all agents in the market so the competition is fierce so we focus on training our agents how to compete within this sector; or alternatively how to accumulate more properties from individual sellers wherein only few agents might have access to the property.

Sub Module 4: ​Understanding how to structure deals for your clients which they are happy with
In an ideal scenario, the real agent in Dubai will be representing both the parties, so therein it becomes vital to ensure that both their interests are taken care of and each party gets a fair deal which they are happy and content with. This could mean managing the expectations of both the parties and realising what is important to each of them; and what they would be willing to compromise on. We train our agents to identify these patterns and be able to structure the deal accordingly to ensure both walk away happy!

Sub Module 5: ​Understanding how to best carry out viewings and property showings
The golden rule of a property viewing – never walk into a property for the very first time with your client. Your client is already seeing it for the first time, make sure that it’s not your first time too! It is your job to answer all the questions that the clients may have, and be aware of the layout of the property. Your confidence is what will rub off on the client so better be well prepared. The walk through of the property should be well structured and cover all the basics which are vital for the client. How to best plan for your viewings and successfully conclude the viewing; this is what we train our agents with.

Sub Module 6: ​Understanding how to best approach clients to obtain exclusive listings
In the real estate business, having good control over your properties is already half the job done. Like I said earlier when dealing with individual sellers or landlords; the ability to obtain listings is an important skill, and the ability to obtain exclusive listings is a big win! If the property is only with you, then all clients or agents alike will come to you to work on the property and since the client is only working with you, you are able to obtain them the best deal. What are the steps to ensure the client is willing to give you exclusive listings, well you know the answer to that..

Are you keen on learning more about the modules to become a better agent? Subscribe to our channel/page and sign-up for our class to get a one-on-one training for REAL ESTATE AGENT in Dubai.

In the training, we will also discuss a bonus module, which in itself is a skill to master – property marketing. Without the right application and procedures to market your property, you are going to be limited in your clients. Sitting in Dubai, I’m sure you want to attract clients from across the globe; this will boil down to your marketing skills, be it across social media, property portals, google or any other medium of your choice. We show our agents how to best utilise them to obtain maximum exposure.

For more information on REAL ESTATE AGENT in Dubai, you can reach out to us via email info@riseupholding.com or phone +971 4 388 7440

FAILURE RATES AMONG DUBAI’S ESTATE AGENTS ARE WAY TOO HIGH

What does it take to be a successful agent or agency in the Dubai real estate market?

As of 2016, there were 5,933 active agents in Dubai market with a total of 2,285 registered offices as per a Dubai Land Department report from that time. Currently, there are 2,672 active agents and 969 companies in the market, based on September data from a private real estate portal.

That doesn’t mean all the agents or companies in the market are on that portal; so let’s consider another 20 percent agents and companies are operating.

Aakarshan Kathuria
Aakarshan Kathuria – Managing Director (RiseUp Holding)

As per our best guesstimates, there would be about 3,200 active agents and about 1,160 active companies. That means for every 2.75 agents, there is one real estate company. Odd metrics, right?

Well, one of the reasons for this is that anyone and everyone who thinks real estate is an easy business feels obliged to open their own company. The majority do end up failing.

I would go as far as saying that perhaps from this list of active agents or companies, only about 25 percent are aware about the regulations in the real estate industry and performing to their true potential. Let’s not talk about the 75 percentile, let’s talk about the 25 per cent who turn out to be successful.

WEAK ON BASICS

The job of a real estate agent in Dubai or globally is not easy, period. I’m not saying any other job is a walk in the park, but for an agent, like any other sales role, it’s all about the income they are able to generate that dictates their take-home.

WHAT DOES IT TAKE TO TASTE SUCCESS?

The barrier to entry for this role is low, which results in many aspiring individuals having a misplaced perception of this role as a money-generating machine that requires limited input and knowledge. A majority don’t have a basic knowledge about contracts or legalities.

While the most important aspect of this field is to understand how to deal with clients, which one can only learn on the job or through training, clients appreciate agents who have their basics in place:

● Understand the basic calculations of investment, rental yield, service charges, mortgage payments, gross and net income; so you can guide your clients better.

● Understand how to draft and review contracts that your clients are signing as a lot of bad investments can be credited to weak contracts.

● Understand the legality of transactions, how to best protect your client interests, and what fail-safe procedures to implement in case something goes wrong.

These are some of the basic principles that are so vital, but easily ignored by that 75 percentile of agents.

Source: Gulf News – Written By Aakarshan Kathuria

THE MATH BEHIND A HOME INVESTMENT in 2021

I often get asked about HOME INVESTMENT, “I’m earning Dh20,000 per month – can I buy a property in Dubai in 2021?”

My answer is determined on a stream of questions which is what I’m going to elaborate on. There are more factors that come into play when determining if we are able to buy a property than just our income. All these aspects are different for every individual.

For argument’s sake, let’s consider a purchase through bank financing, as most buyers are looking for a mortgage when buying ready properties. As a starting point, an income of Dh20,000 per month certainly crosses the minimum threshold to obtain a mortgage.

Generally, your monthly salary needs to be 4x higher than your monthly mortgage payments, which can further vary based on current liabilities. There are a few requirements the bank will ask to get started on the pre-approval.

● Salary Certificate

● Six-Month Salary Slip

● Six-month Bank Statement

● Loan Application Document

● ID Copies

Depending on the bank, the pre-approval validity can vary between 30-60 days and the cost from Dh500-Dh1,000. Once the pre-approval is in hand, make a point to understand how much the bank will lend and how much down payment to have in hand.

This pre-approval helps get immediate offers on distress assets that might be in the market for a short period of time. With a pre-approval, the seller gains more confidence in your ability to obtain the required finance to buy a property.

FIXING THE RATE… OR NOT

Since bank lending can go up to a maximum of 80 per cent, the buyer should have in hand 27.5 per cent of the property value to cover the down payment and all transfer-related expenses. At this point, decide if you want a fixed rate or a variable.

If the pre-approvals are sorted and based on the mortgage type, let’s start onthe fun part – property hunting.

HOMING IN

Based on a salary of Dh20,000 and not having any other liabilities, the bank will lend about 40x the monthly salary, which means Dh800,000. Since that is the maximum lending amount, let’s consider it to be 80 per cent of our target property value, therein allowing us to buy a property of up to Dh1 million.

The down payment along with closing costs would be about 27.5 per cent, which would equate to Dh275,000 out of which Dh200,000 would go towards down payment and Dh75,000 on closing expenses related to Land Department fees, the no-objection certificate, agency costs, mortgage registration, valuation and processing.

Let’s calculate what will the monthly repayments will be. Let’s consider we opted for the fixed rate mortgage for 20 years and at an interest rate of 3.5 per cent. Based on our borrowing of Dh800,000, we are looking at Dh4,640 a month, which is principal plus interest payment.

ADDING UP THE COSTS

On a two-bedroom apartment in Dubai for Dh1 million, which is about 1,200 square foot with an average service charge of Dh 12 per square foot. That means a monthly maintenance cost equates to Dh 1,200.

Factoring in mortgage repayments as well, we are looking at expenses of Dh 5,840 per month. If our purpose for buying the property is an investment for rental yield, then let’s see how much income we are able to generate. Let’s consider our property to be rented out at Dh 80,000, which equates to Dh 6,600 per month.

After deducting monthly outgoing in terms of mortgage payments and service charges, we are still looking at a positive income of Dh760 per month. Upon completion of mortgage payments over the next 20 years, we are now sitting on a fully-paid-up property generating rental yield with only the monthly service charges as outgoing.

If the purpose of purchase is to shift from being a tenant to live in our own property, then instead of paying a rent of Dh6,600 per month, we are now spending Dh5,840 per month on bank repayments and maintenance fee.

It’s a winning situation – whatever the purpose may be.

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Source: Gulf News – Written By Aakarshan Kathuria

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