In Dubai’s booming market, leasing multi-unit buildings can be a very lucrative investment. But success in this field depends on a good plan and good execution. Property owners with multiple units often find them challenging — to the point where they can even lose revenue, end up with dissatisfied tenants, or even get into some legal trouble.

Today, we’ll take a look at the top mistakes property owners make when leasing multi-unit buildings and how to avoid them.

Not Taking Regular Maintenance

Regular maintenance is one of the most common mistakes that property owners do. Since multi-unit buildings have more tenants, more common area usage, and more wear and tear, they often need more frequent upkeep.

Ignoring maintenance can lead to:

• Increased turnover and tenant dissatisfaction.
• More costs for repairs as minor things go neglected.
• A decrease in the property’s market value.

Solution: Provide a preventive maintenance plan to have to inspect and repair units, as well as common areas, and building systems (HVAC/Plumbing, etc.).

Fixing Unrealistic Rent

When leasing multi-unit buildings, pricing is a critical factor. You can set your rents too high, which will deter potential tenants and lead to long vacancy periods, or too low and you will lose revenue.

Why It Happens: Most property owners do not study the local market or take competitive property into consideration when they set rental rates.

Solution: Consider demand, amenities, and the prices of equivalent rentals in the area through a market analysis. Pricing according to property features and location.

Poor Tenant Screening

Leasing to unreliable tenants is a bad idea that can lead to a multitude of long-term problems including unpaid rent, property damage, or legal disputes. However, property owners rush to fill vacancies without doing proper background checks.

Solution: Make sure you have a strong tenant screening process including but not only credit checks and employment verifications, and rental history. You can choose to have a professional property management company do all the tenant screening for you.

Ineffective Marketing Strategies

Listing your property in Dubai is not enough in a competitive market like Dubai. A lot of property owners don’t spend in effective marketing strategies, which ends in extended vacancies.

Common Marketing Mistakes:

• Photos that aren’t very good, or property descriptions that are vague.
• Low exposure to online platforms.
• Not using the power of social media and digital ads.

Solution:

Make professional listings with high quality visuals and descriptions. Reach maximization can be achieved through use of popular platforms like Airbnb, booking.com, Property Finder, Bayut and Dubizzle. Use social media to reach a wider audience.

Failing to Foster Tenant Relationships

Reducing turnover and keeping cash flow steady is key to tenant retention. But some property owners don’t develop good relationships with their tenants, which results in tenant dissatisfaction and frequent move outs.

Examples of Neglect:

• Responding to tenant inquiries or maintenance requests late.
• Building policies or updates that are not communicated.

Solution:

Keep communication open with tenants and deal with issues quickly. Long term occupancy is encouraged by a positive landlord tenant relationship.

Legal and Regulatory Requirements Ignored

Real estate laws and regulations in Dubai are specific including RERA guidelines and Ejari requirements. If you do not comply with these legal obligations, you can be fined or get into dispute.

Examples of Non-Compliance:

• Not registering tenancy contracts with Ejari.
• No regard for the regulations regarding security deposits or eviction notices.

Solution:

Keep up to date with any local regulations and be sure to do everything legally. If you don’t have time to learn about the legal framework of Dubai, consider hiring a property manager familiar with Dubai’s legal framework to handle compliance.

Poor Financial Planning

With a multi-unit building there are a ton of financial responsibilities to manage, such as budgeting for maintenance, utilities, and the unexpected. Some property owners don’t have a clear financial plan and this results in cash flow issues.

Solution: Develop a detailed financial plan that includes:

• A budget for maintenance and repairs for the month and for the year.
• Funds for emergencies not planned for.
• Tracking income and expenses with regular financial reports.

Not Using Professional Management Services

It can be overwhelming and inefficient for many property owners to manage multi-unit buildings independently. Missed opportunities and operational mistakes are often the result of lack of experience or time.

Solution:

If you are considering hiring a professional property management company. They take care of everything from tenant sourcing and maintenance to legal compliance, so you can concentrate on other things.

Conclusion

Leasing multi-unit buildings can be a very rewarding venture but if you avoid mistakes you can have long term success. A proactive approach can help you with everything from pricing your property competitively to maintaining your property and fostering tenant relationships and staying compliant with local laws. To solve these challenges, you can partner with a trusted property management Dubai company like HomeGram and have your property run smoothly, stay fully occupied and bring in consistent revenue.

Are you ready to make property management simple? Find out how we can assist you in managing your multi-unit residential building with expertise and care by contacting HomeGram today.