What if you’re stuck with a property that isn’t giving you any return on your investment? Are you in a situation where you can neither find a buyer who’s willing to pay your asking price nor have you been able to rent it for quite some time? With sales prices dwindling over the last few months, you’re best option would be to rent out the house at a price slightly lower than market price. But that also isn’t easy for the thousands of homeowners who own houses in less popular areas and far-flung communities of Dubai.
If you fall in the above category, there are a few options available that could ensure that you get some decent returns on your investment, such as:
Consider short-term apartment rentals
Renting your property on a short-term basis will help you make some money off of it and even help you pay off your mortgage. You could do this in the interim period, while you look for a buyer for your house or a long-term tenant, or continue to do this if you don’t want to give up access to your house.
In the short-term rental market, you will be competing with hundreds of serviced hotel apartments in Dubai who also cater to short-term tenants. You will have to furnish your apartment with high-quality furnishings, state-of-the-art electronics & appliances to attract potential tenants and also get a good maintenance agency to handle all maintenance issues. Many real estate companies in Dubai are also offering holistic property management services along with helping you lease your property for a short-term.
Put in special offers or discounts to attract tenants
You can also attract potential tenants by offering them one or more of the following:
- Allow the tenant to pay the rent in 4 cheques or more, instead of the standard annual payment.
- Advertise a rent offer which is 3-4% below the market average.
- Get a professional maintenance agency contract for your property.
- Add freebies like small appliances or gadgets in the house.
Move into a smaller house
If you had planned to leverage your own rent with the rental income you had expected to receive from your property, it would be a wise financial decision to move into a smaller house. This will help you save a bigger chunk of your salary to support the monthly installment payments towards your home loan. You can browse through thousands of properties available for rent on MoneyCamel.com and find one that suits your requirements and fits in your budget.
Move into your own house
You could be living in a popular area in Dubai, but at the same time be faced with the increasing burden of mortgage payments for the property you purchased if there is no rental income to act as a cushion. You always have the option to move into your own house! The downside is that you may have to compromise on location or size of the accommodation or even both.
The upside is that there’s a lot that you can do to improve the appearance of your own house irrespective of how big or small the house or your budget is. You can alter interiors and improve exteriors of the house to make it look beautiful. In case of a villa or townhouse, you can landscape the backyard yourself or if you own an apartment, you can make a potted plant garden on your balcony or renovate the interiors using the help of countless DIY ideas on the internet.