Do you know why renting a property is harder than buying one? It’s due to the examination and credentials that tags along. From connecting to a real estate agent to meeting with landlords and signing off the documentation, it’s undoubtedly an incredible feat. It’s even harder when you’re working, wondering why that is so. It’s because you get to hear multiple opinions regarding rental properties at every turn.
Unfortunately, most of these opinions are baseless, with no truth. Regardless if you’re seeking a property to rent in Dubai or elsewhere, you must face the same hurdles. However, now you can relax as we’ve listed some of the most common rental property pricing myths that you must know.
Myth # 1- The landlord can set the Rental prices
One of the most common misconceptions is that property owners can set up the price as much as they want. While that sound justified, considering nearby properties’ costs helps determine the rate. So, if your rent is too high in terms of the amenities, size, and comparable properties, landlords won’t get any views. It can lead to their property staying on the rental market for a long time and ending up being priced lower than it’s worth.
Myth # 2- Rental Prices can be raised anytime
Many aspiring landlords believe they can raise the rental amount whenever they want. However, that’s not how it works. Besides the fact that most states don’t approve of this behaviour, it’s also ethically incorrect. In this regard, landlords must provide tenants a 30 to 60-day rent raise notice to make the arrangements accordingly.
Myth # 3- Inflation can impact the Rental Rates
Many landlords use inflation as a keystone of increasing their passive income. Landlords who’re giving the property up for rent are more likely to follow this myth. However, rents based on the current inflation rate can either end up overpriced or underpriced. Both of which don’t favour the landlord. Yet, several other economic factors can impact rental pricing apart from inflation.
Myth # 4- Never assume the Rental Value of your Property yourself
One must never assume the rental value of their property. Even if you’ve gone through the latest market trends and prices of similar properties, a professional real estate agent is the right person for the task as their expert on rental valuation. Many landlords claim their property is the best in their neighbourhood. But after some inspections, their property is identical to the neighbouring developments.
Myth # 5- Never follow the Tenant’s Affordability
Lastly, a landlord must never determine the rental amount based on the tenant’s monthly income. It’s also a violation of housing laws. While some renters might agree to your terms, others might get off the property. It can result in your property being vacant for extended periods, thereby losing the tenants. Remember that vacancy kills profitability.
After reading all the myths mentioned above, do you know what’s the funniest of them all? It’s that property renting is easy! With that said, connecting with a registered real estate agent makes a wise move since they guide you from scratch to the end. In a nutshell, it’s all a game of being dramatic and realistic. Understand the difference, and you’re good to go.