When expat families make the decision to return to their home countries, there are a lot of things to consider. Expat homeowners are often faced with many uncertainties when it comes to deciding between selling or leasing their property. To help us understand the process and timelines for selling or leasing properties owned by foreigners in Dubai, Bayut has connected British Mums with Romaal Patel, the Property Management Director at Provident Real Estate to answer some of the biggest questions about permanently moving back home.
Watch the full video where Romaal answers the questions about the process and timelines for selling or leasing a property in Dubai. She also identifies the best ways to manage properties to earn a healthy return on investment (ROI) even if you are not in Dubai.
Selling vs leasing
The first question that expat homeowners should ask themselves before moving back home from the UAE, is whether they want to sell their property or rent it out. This decision is usually dependent on whether the owner requires immediate funds. Property owners should only consider selling their property if they need funds.
If a property owner is unable to sell their property before returning home, they can consider two options. One would be to either issue a Power of Attorney to a trusted family member or a friend who would be able to handle the necessary requirements. The other option would be hiring a property management firm that can manage the property and rent it out on their behalf.
If you are not in need of immediate funds, Romaal advises expat property owners who are moving back from Dubai to hold on to their assets and wait for the most favourable conditions. She says that hiring a property management firm that can manage the property and rent it out is the best option for homeowners in Dubai in the current market.
How to choose the right property management firm in Dubai
If a property owner chooses to lease out their property before moving back home, it’s important to hire an experienced property management firm. She recommends looking at reviews on Bayut.
Romaal says, “I would do your due diligence. Really investigate the agency you choose. Sit down with them, speak with them, go, and visit them. Look at their profile on Bayut. Really understand who you’re dealing with and who you’d be leaving your prized assets in the hands of. The market can be quite ruthless during these distressing times, but the seller should not have to suffer, so listen to your gut instincts. Go with an agent who has been referred to you by friends or family, or by reading reviews on Bayut and looking at their profiles”.
The same goes for selling a property. While it is not mandatory to hire an agent to sell a property, there are many rules and procedures that need to be followed, such as conveyancing legal contracts. The entire process can get tricky, which is why Romaal advises property owners to go through an agent to ensure all the relevant procedures are followed correctly.
To be sure you are following all relevant procedures to have your property sold quickly and efficiently, it is best to work with a professional who can support you from start to finish. Remember, only use agents and agencies you can truly trust.
Costs and rental returns when leasing a property
Romaal also discussed the costs that property owners in Dubai can expect and shared an easy way to calculate the estimated ROI when leasing a property.
“The average cost you would incur would include your annual service charges and any miscellaneous charges throughout the year. The great thing about renting out your property here in Dubai is that there is always a minor and a major clause mentioned in the addendums of the contracts. So, anything below a certain amount that’s specified in that contract is charged to the tenant, and anything above that is charged to the landlord” she said.
Utility charges such as DEWA, AC and the network provider would be paid by the tenant. It is the tenant’s responsibility.
To work out the expected ROI on your property you would look at the annual rental amount coming in. From that, you need to deduct your service charges for the property, your mortgage charges and any miscellaneous charges received in that one year. Then divide that number by the value of the property, which would give you a rough idea of what you earn as a percentage.
Property owners in Dubai have a lot of options before returning. We hope this article was informative enough to help you decide what to do before returning to the UK. If you need any more assistance regarding the sales and leasing of your property in Dubai, contact Provident Estate – they are a reputed property consultancy firm that offers various property management services. You can also send an email to firstname.lastname@example.org if you have any other property-related questions.
If you would like to write for British Mums, we would love to hear from you. Please email us at email@example.com. You can find our editorial guidelines here.
More about British Mums
To be able to enter competitions, upload and view British Mums member content, you’ll also need to register for the British Mums website here: https://britishmums.com/dubai/register-login
If you want to receive details to join in events, receive exclusive offers and news, don’t forget to subscribe to our newsletter here: https://britishmums.com/dubai/subscribe-to-our-newsletter/
You can also join British Mums on Instagram ‘British_mums‘ and if you’re out and about please #britishmums to your pics so we can see the fab places you’re going to!
And if you’re on the move to pastures new, here’s our communities you can also join:
British Mums Saudi Arabia
British Mums Oman