Some people are entrepreneurs. They like to build their career, stand on the quality of business, and succeed based on reputation. However, others like to collect a steady monthly or yearly payment based on reputation and the quality of the apartment they offer. People who are like this will enjoy being landlord.
A landlord’s job with one property or apartment is simple. Charge a reasonable rent, build a positive rapport with the renter so they might recommend you as a landlord, and maintain the apartment in a timely manner. Multiply this by tens, hundred, or even thousands of properties, and suddenly the landlord’s job is much more difficult. A landlord must be respectful to all their tenants while at the same time collecting rent and doing repairs to the parts of the properties that they are responsible for.
Herein lies the difficulty: what do you want to be responsible for in an apartment, how much do you want to charge for rent, and can you be respectful to the clients? If you can figure these out, read to discover the three basic types of apartments for sale in Dubai.
The unfurnished apartment is the simplest type of apartment to maintain. Here, you will be required to maintain only the bare basics. These include light fixtures, the shower and other plumbing fixtures, and a basic kitchen, such as an oven and fridge and freezer.
An unfurnished apartment for sale in Dubai is thus the easiest building to maintain. You will not have to worry about replacing any expensive equipment, and the worst that will happen is a plumbing or appliance catastrophe. Thus, most of your repairing costs will be hiring a plumber or replacing an oven, stove, or fridge/freezer.
The drawback to this is that unfurnished apartment also rent for the least amount of money. The lowest unfurnished apartment for rent in Dubai goes for about AED 15,000 per month in Dubai. The lowest cost of an apartment for sale in Dubai goes for AED 100,000. Thus, to break even with any given tenant, at the lowest rental price, you will need ten months in rent.
Partially Furnished Apartment
This brings us to a partially furnished apartment. A partially furnished apartment for sale in Dubai might come with its own set of appliances or furniture, but not both. This means that addition to the electrical works and the oven and fridge/freezer unit, you will also need to supply a washing machine, dryer, dishwasher, and more – or, alternatively, furniture, such as a sofa, bed, and so on.
A partially furnished apartment for sale in Dubai is thus more expensive than an unfurnished apartment. However, if you provided appliances, you would still have to pay an electrician and a plumber, but you would not have to hire anyone else. Furniture, on the other hand, will require you to hire another repair person. The biggest challenge here would be to get reliable appliances or furniture that you know would not have to be repaired that often.
The major benefit to a partially unfurnished apartment for sale, which you would then lease out, is that you can charge more. One of the lowest partially furnished apartments for rent goes for AED 22,000. This means that, if you get the same deal as the unfurnished apartment for sale in our example, it would take only five months to break even.
Fully Furnished Apartment
Finally, there is the fully furnished apartment. Fully furnished apartments come with a set of furniture and a fully set of appliances, and sometimes landlords like to throw in bonuses such as a Nespresso maker, a full set of cutlery, and so on.
The major drawback of getting an apartment for sale to then lease as fully furnished is that it will cost the most to maintain. You will have to maintain the most things in the apartment: electricity, furniture, and plumbing. This means that you had best make sure that everything in the apartment that you rent is reliable and will not break quickly or easily.
However, the major plus of getting an apartment for rent in dubai to then lease as fully furnished is that you can charge the most money in rent for it. One of the lowest rental prices for a fully furnished apartment is AED 25,000. It would take only four months to recoup the cost of getting your apartment for sale in Dubai.
Unfurnished, partially furnished, and fully furnished apartments have their benefits and drawbacks when looking for an apartment for sale. Unfurnished apartments rent for the least but also cost the least to maintain, while fully furnished apartments rent for the most but also can cost the most in maintenance costs. Overall, the rent should eventually outweigh the total cost you paid for your apartment for sale.