Learning About Dubai Property Management: Letting Fees and Leasing Renewal Fees16 Jul 2018
In the past, Dubai property management has been the subject of fraudulent activities with some clients accusing property managers of being money-hungry agents. This has been brought about by unfair and excessive payment collections from both the property owner and tenants. Unfortunately, property management fraud has overshadowed the otherwise excellent services that most property management companies, like Zawaya Property, provide to their clients. And now, property owners and tenants alike have requested the government to regulate property managers and the fees they require from clients. But is this really necessary?
Experts believe that instead of prohibiting letting fees and other charges, the government should turn their focus on regulating property management companies, instead. Let us help the best property management companies in Dubai get back the clean and trusted reputations they have, and better understand the fees that are required. What are letting fees? A letting fee is charged when a property manager sources a new tenant for a vacant property.
This is required because the agent has to perform certain tasks to find high quality tenants. These tasks include:
1.Conducting private inspections and/or conducting open days for inspections for a potential tenant
2.Performing rental checks on all applications received
3.Preparing all the legal documents required
4.Collecting bond and lodging it
5.Preparing a condition report and photos for the incoming tenant
A lease renewal fee is collected when the property manager negotiates another rental contract with the current tenants, as instructed by the property owner. The agent charges this fee because he has to complete the necessary documents that are needed for the next lease contract. The agent has to make sure that both parties, the owner and the tenants, agree to the terms of the lease. He has to ensure the return of the fully signed leases. In this case, the owner and the property manager cannot force the tenant into renewing his contract. If both parties do not agree the lease term, then the lease becomes a periodic lease when it has reached the termination date. Now that you understand what the leasing fee and the lease renewal fee is all about, don’t be afraid to voice your concerns about it to your property manager.
And when you have the best company for property management Dubai, Zawaya Property, to handle your real estate investments, you are ensured of getting the best out of your buildings. Do check out Zawaya Property today and have the expert property optimiser on top of your rental business.