As a landlord, you know that the key to success is to strategically invest in properties. You may have considered purchasing villas, which you can lease to tenants. Villas are more desirable than apartments for some landlords because of two reasons. First, the tenants are more mature. They often have families or are retirees and have moved past the maturation phase of life. Second, there are usually only two heads of households that you will have to deal with when collecting rent. This saves you an enormous headache and avoids situations where there are three or more people that you must collect the rent from.

One such place that has many villas is Dubai. Dubai, in the United Arab Emirates (UAE), is a city that is brimming with activity. It is diverse enough that you are sure to find the right tenants to lease your villas to. There are neighborhoods themed around cars, the Internet, sports, golf, and the media, but there are also neighborhoods reserved exclusively for the upper class. With so many neighborhoods, it may get overwhelming when figuring out where to invest in!

Thankfully, there is a strategy that you can use to narrow down the types of neighborhoods. This involves reading clues left by rent prices, amenities offered, villa features, and neighborhood attractions to figure out which neighborhoods are right for you to invest in. This is important since finding the right tenants will avoid a lot of headaches for you.

If you are a landlord looking to invest in villas for sale in Dubai, read on to discover the tenants of Arabian Ranches.

From the Middle Class and Beyond

First, you can predict that your potential tenants would be from the middle class. You can make this assumption by looking at the rent prices in the area and knowing about the currency of the UAE, the dirham (AED). Citizens of the UAE, called Emiratis, get paid in dirham and use it as their own currency. However, there is a sizeable expatriate population in Dubai. These expatriates get paid in their native currency and convert to dirham, and many currencies will have a favorable exchange rate. This means that expatriates are, on average, wealthier than Emiratis.

Next, according to Salary Explorer and other salary aggregate websites, the lowest average annual salary in Dubai is 57,720 AED. Meanwhile, the median average annual salary is 258,000 AED. With this knowledge, you can proceed to look at prices.

Finally, the most expensive villa is Arabian Ranches is a 4-bedroom villa with an annual rent of 320,000 AED. If there are two heads of household paying equally, then each pays 160,000 AED. Meanwhile, the least expensive villa in Arabian Ranches is a two-bedroom villa with an annual rent of 115,000 AED. IF two heads of household are paying equally, then each will pay 57,500 AED.  This range of 57,500 AED to 160,000 AED will adjust upwards when the price of utilities, groceries, necessities, and entertainment are added in. 

Therefore, while those with the lowest annual salary are priced out of the villas, those making above that salary, mainly in the middle class, will be able to afford these apartments.

They Value Privacy

The second prediction that you can make about your potential tenants is that they value privacy. You can predict this by looking at amenities offered. First, residents will be provided with 24/7 security services. This will ensure that residents can screen their guests. Next, a business center will provide a quiet way to work. A laundry service and marina berth will allow residents to relax if they have a boat, and not have to venture out to get their laundry done.  Finally, a private garage, private garden, private jacuzzi, and private pool all enhance the sense of privacy and relaxation.

They Are Physically Active

The final prediction that you can make about your potential tenants is that they are physically active. You can predict this by looking at the neighborhood attractions. Firs, Arabian Ranches is home to an 18-hole championship golf course, which includes a golf club and clubhouse. Then, there are basketball and tennis courts. Children’s playgrounds are found throughout the area. There is also a polo club, clubhouse, and equestrian center. Cycling tracks and walking trails line the neighborhood. Finally, the neighborhood has multiple swimming pools and a gym.

Conclusion

The key to be a successful landlord in Dubai is finding the right tenants. You find the right tenants by investing in the right neighborhoods. By examining the rent prices, amenities offered, villa features, and neighborhood attractions in the area, you can make general predictions about the types of tenants in each neighborhood. This will maximize your chances of finding the right tenants.

If you are a landlord looking to invest in villas for sale in Dubai and want tenants who are from the middle class and beyond, who value privacy, and who are physically active, now is the perfect time to invest in villas for sale in Arabian Ranches today!

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