Investing in rental properties is a great way to generate a steady stream of income – especially in Dubai, where most residents prefer to rent rather than buy a home, due to high housing prices and a large number of expats who stay in the city short-term for business.
However, you’ll only make good money off of your rental property if you put in the work and invest in your residence. There are many ways landlords in Dubai can boost their rental income, and in this article, we look at the top residential fit out tips and interior design tips that can help increase your rental yields.
Furnish the space
One of the easiest ways to boost your rental income is by offering tenants an already furnished, ready-to-move-in space. Although it might not be a suitable option for everyone, many tenants would be willing to pay more for the ease of moving straight into a fully furnished home.
Short-term renters, those new to the city or country, or a baby bird who recently flown the nest are just a few examples of tenants who would have little in the way of furniture and would love a place that makes their lives that much easier.
Research on the topic has shown that landlords who provide a furnished property earn over 20% more in rental income than those who offer unfurnished spaces. This information is particularly relevant to landlords in Dubai, as a major percentage of the city’s population consists of expats who move over with nothing more than a suitcase full of clothing. These tenants will happily pay a premium to have a ready-to-move-in home that’s already furnished with everything they need to start their new life in Dubai.
It might seem like a great expense to furnish your rental property with modern furniture and aesthetically pleasing décor, but you will reap the rewards in the long run. After all, rental property is an investment – and as the saying goes, “You need to spend money to make money.”
Go green wherever you can
Modern tenants are interested in homes that take sustainability and energy efficiency into account. The world is leaning towards eco-conscious designs and concepts and if you want to attract tenants who are willing to pay a higher premium to live on your property while doing your part to help the Earth, then this is a good place to start. Not to mention the money you’ll end up saving on utility bills at the end of each month!
Installing energy-efficient appliances and products geared towards renewable energy will cut down on utility costs and make for a more sustainable living space. Solar panels, especially, are a great investment that will generate enough power to look after the tenant’s needs with enough left over to put back into the grid – meaning you can go green, charge more rent and save money all at the same time. In addition, most solar panel systems come with a 20-year or more warranty, which means it’ll pay for itself in approximately 5 years from the installation date – and the rest is pure profit.
Invest in a proper HVAC system
Summers in the UAE are extremely hot, with average temperatures ranging from 38 to 42 degrees Celsius. And the winter season isn’t that much cooler. With that being said, an HVAC system is vital to have in every home in Dubai, Abu Dhabi and every other emirate.
Temperature control systems can be a make-or-break factor for tenants, so make sure you invest in a quality HVAC unit that offers comfortable heating and cooling climates. The best part about installing an HVAC system is that you can increase the rent on your property.
Add in some extra amenities
Increasing your rental price will surely put off a lot of potential tenants – but not if you make it worth the extra money they’ll be shelling out. This means that you need to provide more than just the bare essentials.
Adding in popular amenities will help you fill vacancies and allow you to raise the rent. Here are a few items you can consider installing:
- Dishwasher: It’ll add convenience to a tenant’s life and save them from having to splurge on one themselves.
- Off-street parking: A driveway or a carport is a big win for tenants as this means their vehicles are kept safe from theft and damage.
- Washer and dryer in-unit: Nowadays, most people wouldn’t consider leasing a place without a washer and dryer. Although it’s not necessary, if you want to up your rent price, you need to provide your tenants with conveniences and comforts that’ll make it worth it.
Create a second bathroom
If you have the budget and really want to improve the rental value and increase the rent price of the property, add a full bathroom for every bedroom on the property. Nothing increases rental income like having a one-to-one bedroom-to-bathroom ratio – especially for roommates and families.
The construction of adding a second bathroom won’t be hassle-free, but we can promise that it’ll bring substantial gains.
Craft an extra bedroom out of dead space
Your rental property might have a formal dining room or dead space that can easily be turned into an extra bedroom, which will increase both your rental yield and property value. Once again, it will cost you a pretty penny, but it will be well worth every cent and more.
Build an entertainment area
Whether it’s a small patio or a balcony, tenants are drawn more to homes that provide a place to sit outside, enjoy nice weather and entertain guests.
Add more storage or a walk-in closet
Additional storage space is a forgotten feature that can add significant value to your property. Renters want a home that’s not only pretty but functional too. Providing enough space to store their belongings comfortably is much more attractive to prospective tenants as they won’t have to look for a storage unit or be too cramped in their homes.
A good way to add more storage space to your rental property (especially if it’s an apartment) is to convert the closets into walk-ins – whether that means decreasing the square footage of the bedroom or extending into a hallway or bathroom.
Soundproof the walls
Our final residential fit out tip is to consider soundproofing the walls. This is a particularly good idea if your investment property is an apartment.
Privacy is important and most buildings are known to have thin walls. Tenants don’t want to feel as if they’re sharing their space with the neighbour next door - which is why we suggest soundproofing the walls of your residence to accommodate this.
Need to find a fit out specialist?
If after reading this article, you’ve realised that your place needs a few upgrades, but have no idea where to start, we’ve got you covered.
One of the first things you need to do is to find a skilled and experienced expert to help you on this journey.
Contractors.Direct offers a curated database of thoroughly vetted, quality fit-out contractors, interior designers and interior architects who can bring your vision to life, on time and on budget. Get in touch with us and we’ll be happy to connect you with the right people for the job.
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