If you are a landlord, then you know the key to your success is having good tenants. You also know that no two tenants are alike. This is especially true in the diverse city of Dubai in the United Arab Emirates (UAE). So, how does a landlord ensure that any apartments for sale that they purchase will match up with the tenants they are likely to have?
The answer is to look at four key data points. The first data point is the rent prices of the area. In the UAE, the dirham (AED) is the native currency. Using rent prices, you can predict the income level of the tenants you are likely to have. For example, an apartment that costs AED 50,000 annually means that tenants are likely to have at least an income of AED 50,000 to be able to afford the apartment. After that, when the prices of utilities, entertainment, necessities, and groceries are added in, this annual income becomes even higher. Thus, you will have a rough estimate of the income a tenant will have.
The second data point is the amenities that come with the apartment. Amenities that come with apartment can vary from having a sauna and steam room to having a private gym or private swimming pool. Security, maintenance, and concierge services are also sometimes provided. The more amenities that are offered, the more it will tell you about the tenants. For example, a business center might tell you that a tenant is employed, while a security service might indicate that they will be out of their apartment a lot.
The third data point is the features of the apartment. Features of the apartment, such as whether the building is energy efficient, how many features are outdoors, and more will tell you about the activities of the tenant. For instance, if there is a small kitchen, perhaps the tenant will be more likely to dine out.
The final data point is the attractions of the neighborhood. Attractions of the neighborhood, such as whether there is a theme park or whether the apartment is near business towers, will tell you more about the tenant. For example, an apartment located in a business district could indicate that a tenant is employed.
If you are a landlord looking to invest in apartments for sale in Dubai, read on to discover what types of tenants you will probably have in an apartment in Business Bay.
From the Middle Class and Beyond
First, using rent prices in Business Bay, a landlord can determine that tenants in their apartments will likely be from the middle class and beyond. The cheapest apartment in Business Bay is a studio apartment that has an annual rent of AED 32,000, while the most expensive apartment is a three-bedroom apartment with an annual rent of AED 175,000. Assuming that there are only three people per bedroom in this apartment, the average annual income that a tenant will have is between AED 32,000 and AED 58,333. The range is slightly higher when the cost of utilities, groceries, necessities, and entertainment are added in.
Employed
Second, using multiple data points regarding amenities offered and features of the apartment and its tower, a landlord can determine that tenants in their apartments will most likely be employed. First, built-in wardrobes indicate that the tenants will frequently have to wear different outfits, including suits and jackets. There are three rooms within the tower that can be used for employment, including a business center, business lounge, and a multi-purpose room. There is a 24/7 security service provided for the apartment, which indicates that tenants might frequently be outside of their apartments. Finally, valet parking is provided, which indicates that tenants might frequently be leaving their apartments.
Physically Active
Finally, using data points about the facilities provided around the neighborhood, including some facilities in the residential towers, a landlord could predict that tenants in their apartments will most likely be physically active. First, there is an aerobics room and gym in the area. Second, there is a public park, trampoline, and walking trails in the neighborhood. The community is also bicycle-friendly. There is a tennis academy in the area. Finally, there are sports facilities in the area, including badminton, basketball, and squash courts.
Conclusion
Using data points from amenities provided, features of the apartment, rent prices in the area, and attractions in the neighborhood, a landlord can predict things about potential tenants. For instance, the rent prices in Business Bay indicate that tenants will be from the middle class and beyond, amenities and features of the apartment show that tenants could be employed, and attractions in the neighborhood can be used to predict the tenants will be physically active.
If you are landlord and want to have tenants from the middle class and beyond who are employed and physically active, now is the best time to invest in apartments for sale in Business Bay.
