Breakdown of Average Property Management Companies in Dubai

Investing in Dubai’s property sector doesn’t just begin and end with buying a property and putting it up for rent. Once you buy a property, you face the uphill task of managing it. You can either manage it on your own, be an absentee landlord by putting someone else in charge, or you can get help from property management companies in Dubai.

The last method is perhaps the most common one used, mainly because it takes away the hassle of having to manage everything. But like everything else, it comes at a cost. So today, we’ll break down property management fees in Dubai. So stay tuned and keep reading.

First, let’s consider the advantages and disadvantages of hiring a property management Dubai company to take care of your property.

The Advantages of Hiring Property Management Companies in Dubai

The following are the advantages of hiring property management companies in Dubai.

1. Saves time

Perhaps the best part of hiring a property management company is the time you save, which you can invest in other useful matters. How’s that? A property management company takes away the responsibility of managing all matters related to your property. Thus, you don’t have to move from one place to the other, or contact other people for maintenance, screening tenants, or negotiating new contracts. Everything is managed by the property management company, without the need for you to invest time and effort.

2. Professional services

When you are executing your dealings through a property management company, you know that things are being carried out professionally, which makes paying property service charges in Dubai worthwhile. Property managers make sure to come up with the best services for your property’s upkeep and cherrypick the most suitable tenants. Thus, you know that everything is being taken care of, and accounted for.

3. Screening and managing tenants

A great way property management companies help homeowners is by screening tenants. At times, tenants might turn out to be problematic. For example, some might have a criminal background, or a history of late payments. So, property management companies in UAE ensure that they hire the right tenants who don’t cause problems in the future. Furthermore, property management companies also look after the negotiation, and renegotiation of the lease terms. As a result, they are a complete solution, when it comes to managing tenants.

4. Handling maintenance and repair issues

With the passage of time, properties tend to experience immense wear and tear, whether it’s because of natural reasons, or how rigorously the property has been used by the homeowners/tenants. In this case, the first course of action is to find a suitable vendor who can deal with the repairs. This is a great hassle. However, with a property management company, you don’t have to worry about these issues. Property management companies handle this process with ease, by choosing the right vendors at the most cost effective quotations. As a result, your property always remains up-to-date.

So, these are the advantages of hiring a property management company. Now, let’s look at the disadvantages.

The Disadvantages of Hiring a Property Management Company

Here are some of the reasons why paying property service charges in Dubai might not be the right course of action.

1. An additional cost

Property management companies charge a certain fee, which depends on the size of your property. However, the fee eats up a considerable amount of your rental income, decreasing the returns that you get on your property.

2. Quality of service

Not all property management services provide the same level of satisfaction. Aside from a few reputable names, when choosing a property management service, ensure that you take feedback from existing clients, and check for online reviews. Otherwise, despite paying an additional amount, you might not get the utility that you expect.

3. Communication challenges

Differences in communication style constitute a big barrier, when dealing with property management companies. Moreover, the lack of a hands-on approach also constitutes to another barrier in getting issues resolved. As a result, you might get a sub-par result, compared to what you were expecting from the property management company.

Now that we know the advantages and disadvantages of hiring a property management company in Dubai, let’s look at a breakdown of the average property management costs in Dubai. Let’s dive into it.

Costs of Managing Property in Dubai

The following is the breakdown of the costs of managing property in Dubai.

1. Property management fee

Usually, the fee for managing property in Dubai ranges from 5% to 20%, depending on the property’s value. On the contrary, some companies also charge a fee, based on the property’s rental value. For example, for rents below 100,000 AED, a flat rental rate of 5000 AED is charged.

2. Other fees/hidden charges

Aside from the usual property management fee, there are other associated charges as well. For example, some property management companies may charge additional fees for marketing. Furthermore, you might also be charged for repairs which exceed a certain amount.

Further examples of hidden charges may include fee for pest control, solving legal disputes, or filling up rental vacancies. Thus, when you’re negotiating your terms with the property management company, make sure to take these charges into account.

Now that we know about the costs associated with property management companies in Dubai, let’s look at some of the best property management companies to get a hold of in 2024.

Best Property Management Companies in Dubai in 2024

Here are some of the top property management companies of Dubai in 2024.

1. Allsop and Allsop

Allsop is known to cater to its client’s in the best possible manner. The company provides two packages, namely standard and premium. The standard package covers handing over keys to the tenant, as well as handles the responsibility of the occupants moving in and moving out. It also offers services, such as the renewal of the tenancy contract, and maintenance services for the home’s upkeep. The premium package provides legal support, and access to an attorney.

2. Asteco

Asteco provides a wide range of property management services such as rent collection and assessment, insurance advice, general consultancy and advisory services, maintenance supervision, and budgeting solutions. The company hosts a massive portfolio of managing 30,000 residential units, and 23 commercial units, with a 90% occupancy rate.

3. BSO

BSO currently manages a portfolio of 200+ properties. What makes this company a likable option is the availability of an online channel, which helps you with paying property bills at a discounted rate, access your documents at any time, and track the progress of your pending requests. The company has 10 years of professional experience, and a portfolio of clients scattered across 47 different countries. The company operates in 177 different locations across Dubai itself. Thus, it has a trustworthy and robust portfolio for clients to work with.

So, these are the three best companies to approach for managing your property in 2024.

Now that we know all about the best property management companies in Dubai, let’s go for the takeaways about what we learned throughout the blog.

The Takeaways

Having property management companies in Dubai by your side is a great thing. They provide numerous advantages, such as time-saving, professional services, screening and managing tenants, and managing maintenance and repair issues.

However, property management companies also come with their fair share of disadvantages, such as costs in the form of service charges, variances in the quality of services, and communication challenges. Many notable real estate management companies in Dubai offer the best freehold areas with a robust and successful portfolio. We have options like Allsop and Allsop, Asteco, and BSO. All of these companies have a phenomenal rapport with their clients.