Dubai landlords are offering a variety of incentives to tenants. This is to entice tenants into renting their properties in the city. Rent declines for residential properties in Dubai averaged at 5% over the last 12 months, reports Cavendish Maxwell. Rent declines were reported to be even more in International City, The Greens, Al Furjan and Discovery Gardens. This shows that Dubai landlords are going to great lengths in order to encourage tenants to rent their properties over others.
Dubai Landlords Encouraging Tenants to Rent
Lewis Allsopp, CEO of Allsopp & Allsopp, explained that landlords are offering various incentives to keep their rental units occupied. This included showing a greater deal of flexibility in order to attract new tenants and to retain existing ones. Allsopp went on to state that other landlords have been offering one month free rent, the inclusion of white goods and paying for moving fees. As there is a healthy demand for tenants at the moment, landlords need to offer competitive rent and attractive cheque payments in order to ensure that their units are chosen. Allsopp explains that these incentives will help them to attract tenants quickly.
Mario Volpi, Sales and Leasing Manager at Engel & Völkers, explained that Dubai landlords are having to think outside of the box. New tenants are being enticed with paying for 12 months but being able to stay for 13. Dubai landlords are also having to offer a range of payment terms and different maintenance contracts.
However, some landlords are choosing to stick to their original plan of commanding a one cheque payment. Many landlords who own high value and luxury properties understand that they are in high demand, which allows them to hold out until someone is willing to pay with a one cheque payment. Landlords with less sought after properties are not as fortunate.