With the Dubai economy once again experiencing wholesale growth, the prospects of generating and maintaining high tenancy rates among residential properties is increasing.
Still, this is only providing the opportunity of increasing tenancy rates and does not ensure a higher tenancy rate. To increase and maintain high tenancy rates, it requires a well-developed relationship between property owners, the property management team, and even the tenants themselves. A well-developed relationship is one in which value is created at all stages and is recognized by all parties to the relationship. Often, the weight of this relationship falls to the project management team to ensure that value is generated and functions in a bidirectional fashion.
Property Management: The Critical Link
An experienced and qualified property management team functions as a critical link between the tenants and the property owners. Tenants gravitate towards properties that offer value and it is therefore the responsibility of the project management team to maintain that value in order to ensure higher rates and thus a return of value to the property owners. This link is especially vital when the market conditions enter a highly competitive phase such as the one currently being experienced in the United Arab Emirates. Having a property management team that understands the nature of said link can make the difference between high tenancy rates and rates that are below market expectations.
Maintaining Value For All Partners
Maintaining value for all partners, thus ensuring high tenancy rates, are accomplished by the property management team exercising such services as:
- Engaging Marketing and Expert Leasing Practices
- Prompt and Responsive Tenant Management
- Accurate Document Discipline
- Precise Reporting
- Financial Administration with Budget Control
- Maintaining Corporate Social Responsibility Actions
- Excellent Facilities Management
It is these services and their related components that ensure that value is bidirectional between the tenants and property owners. It is this value that attracts and retains tenants and therefore ensures high tenancy rates. This generated value is especially important in areas like Dubai, that is seeing a resurgence of growth, and thus the competition for tenancy rates are also experiencing a corresponding rise.
For developers and property owners, engaging the right property management team is imperative to gain and maintain high tenancy rates. For not only the sake of bidirectional value creation, but for the element of trust necessary for this value to even exist. There are property management services that offer template services, but these are not tailored to individual properties and are less efficient at maintaining and generating a well-developed relationship between all parties. In highly competitive marketplaces such as the UAE, Dubai in specific, a cookie cutter approach to property management will not generate value to its full potential. A properly experienced and knowledgeable property management team, that takes a tailored approach to individual clients and properties, are the best way to achieve high tenancy rates, maintain them, and ensure that value for all partners are flowing correctly.