TL;DR: Key Takeaways

• Property management costs vary from company to company, typically ranging from 5% to 20% of the annual rent.
• Keyper has minimal property management fees, i.e. AED 3950 and AED 5950, for apartments and villas, respectively. Paid annually, and you only pay for the days your unit is actually rented
• There are some additional costs, aside from property management, such as maintenance, property service charges, rental contract fees and more.

Typical Cost of Property Management

The property management fees and costs in Dubai vary depending on the type of property and rental type. Other charges can be additional, such as maintenance fees, rental contract registration fees, and some companies may also charge a signup fee. 

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With Keyper, property owners also benefit from a transparent pricing model where you only pay for the days your unit is actually rented. There are no fees for vacant days, and you keep full visibility and control through the Keyper app.

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Here’s a breakdown of costs you can expect from property management companies, compared to Keyper:

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Unlike traditional percentage-based models, Keyper lets property owners manage everything directly in the app for free, and upgrade to full property management only when they want Keyper to take over daily operations. Owners still keep full visibility and oversight throughout.

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Additional Costs Charged by Property Management Companies

Property management companies can also charge other costs, such as maintenance, rental renewals, inspection fees, valuation service fees and more. 

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Here are some extra property management costs that you can encounter:

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1. Maintenance and Repair Work

When you rent out a house or use it yourself, the property demands regular maintenance checks and electrical, mechanical or plumbing repairs over time. That said, these maintenance costs are cut down a lot when you choose a property management company, as they provide additional services, charging less compared to when you book maintenance services on your own.

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On the other hand, some property management companies in Dubai might charge a small fee for their administrative and supervision services when your home is under maintenance. 

2. Property Valuation

Property valuation in Dubai is another service provided by the management companies for an additional fee. The professional valuation includes property condition reports, its market value and a rental valuation certificate.

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3. Tenant Screening

One bad tenant can cost you thousands of dirhams in the form of repair and maintenance. That’s where a property management company helps with tenant screening and may charge a flat fee for it. 

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On the other hand, Keyper has a free tenant screening tool for every landlord, allowing them to check a tenant’s history, verify employment and income. Keyper’s tenant screening tool allows real-time communication between the renter and landlord. Additionally, it facilitates all documentation and local lease formats.

4. Service Charges

In Dubai, you have to pay a regulated property service charge. These service charges cover the maintenance and upkeep of shared facilities, such as lobbies, hallways, security, landscaping, and communal amenities. 

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This service charge is a standard fee set by the developer and approved by RERA. Whether you include service charges in the rent or outline in the tenancy contract that the tenant will be responsible for paying them. Nonetheless, the service charges are a must and start from AED 3 to AED 30+.

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5. Documentation and Contract Fees

When you sign a tenancy contract in Dubai, the Ejari registration must be completed through the Dubai Land Department (DLD). The standard government fee is AED 100, plus AED 10 for the Knowledge fee and AED 10 for the Innovation fee. When processed through an authorised trustee centre, additional service fees apply, bringing the typical total to around AED 220.

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With Keyper, Ejari issuance costs AED 250 to AED 350. If the tenant is paying the tenancy renewal fees, usually AED 750 to AED 1,000, the Ejari issuance fee is waived.

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Breakdown of Property Management Cost

Suppose you have an apartment with a rental value of AED 100,000 per year. A property management company charging 5% will cost AED 5,000. On the other hand, Keyper has a fixed annual charge after your property is rented, i.e. AED 3,950 per year. Also, there is no fee for the property vacancy. 

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Keyper’s model is designed to give property owners more control: use free self-management tools in the app or upgrade to full-service management when needed. With either option, you see everything happening with your unit in real time.

Which Services Are Included in the Property Management Cost?

Property management services include the following:

• Tenant screening 
• Move-in and move-out property inspections
• Rent collection and management
• Vacancy management
• Lease documentation and legal guidance

With Keyper, you can also access tenancy screening software and one of the best property management tools. With this tool, the property owners will be in full control of their real estate portfolio and can access all the services instantly.

FAQs

1. Are Property Management Fees Regulated in Dubai?

No, property management fees are not regulated. However, their operations are regulated and governed by the DLD laws and regulations. Industry standards and market competitiveness have kept the fees within a reasonable range, making it easier for property owners to manage and rent out their properties.

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2. How to Evaluate If a Management Fee Is Worth It?

If you want to evaluate if the property management fee is worth it, check the services the company is providing. Check their reviews, testimonials and market presence. Moreover, you can explore the rental and vacancy rates of that property management company.

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For instance, Keyper has extremely valuable rental services, providing tenants with an option to pay their yearly rent in monthly instalments, while landlords can get upfront rent right away.

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These were all the details on the property management cost in Dubai and how you can choose the best company to manage and rent out your properties. With the Keyper app (iOS and Android), you can access all the services and details about your real estate portfolio in real time. 

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For more details on property and rental management, keep reading the Keyper blogs to gain more insights on how you can manage your rentals effectively.