As a landlord or property manager, you need to ensure that your living spaces are occupied with reliable tenants who won’t cause any predicaments. Even if you are eager to fill vacancies as early as possible, you need to evaluate precisely about who you are renting to and what the outcomes might be.
Any failure to vet your new tenants could end up in a disaster. You might have to face late rent payments. Or, in a worst-case scenario, you will be left with a badly damaged property. Therefore, be judicial in your approach while finding and evaluating new renters. This would ultimately save you from the many headaches waiting down the road.
Renting property in Dubai is not a piece of cake. And while in-person meetings can resolve certain concerns, you need to take background and credit checks into account to mitigate major risks. Therefore, protect your investment by taking these following steps before handing over your living space to a new tenant.
While a background check will disclose an eviction, criminal record, or fraudulent history, credit checks will assist you in measuring whether or not a renter can pay their bills. Since 2014, the Al Etihad Credit Bureau has gathered the business credit information of the individuals from the Emirate’s utility companies, financial institutions, as well as government sources.
According to the Central Bank of Dubai, the credit bureau helps generate four types of reports. These include Short Reports, Long Reports, Long with Scores and Scores only. In this way, you can easily look into tardy payments, monetary judgments, open and closed credit cards, and more.
Inhabitants in Dubai have been given a credit score between 300 and 900. If it is below 600, you need to be cautious here.
Also, access current and former addresses. This is because there are some tenants that leave out their past addresses; they either do this for their own ease or to serve their other vested interests. So, double-check and scrutinise all the documents thoroughly.
Moreover, if you witness that the tenant has filed multiple applications with lending institutions, chances are bright that they have been facing financial constraints. Also, evaluate the payment history for contracts. This is the key factor to examine if the tenant is capable of paying their rent. Yet another red flag for the landlord is the number of overdue renter’s contracts. In case you find many, disqualify that candidate.
While you may not be aware of this fact but you can ask for a Certificate of Good Conduct from your tenant. While screening them, you can make it the part of the process. So, just to bring the element of certainty, request this proof which should be backed by the Dubai Police Department.
Many expats in Dubai have a medical report completed from their visa. While demanding a medical report seems to be a hard approach, tenants shouldn’t face the problem in showing it to the landlord on their visit.
If you are giving your living space to some foreigner, simply seek out their credit check from the tenant’s home country.
There are some landlords that give extra attention to every detail, so here are some tips for renters, you should order and deliver that report online instead of by post. This will enable the property owner to scrutinise each and every detail clearly without any doubt.
Never underestimate the power of a social media scan. These days, a single Google research can unearth the plenty of information added on tweets, Facebook profiles, LinkedIn CVs and the list goes on. Ensure that the information available online should match with the profile which the tenant has given to you.
One of the most prudent ways to get the peace to mind is to call for a reference. So, dial-up a previous landlord, meet them in person (if possible) and make sure to ask the right questions. You should read between the lines and know the distinction between finding an objective answer and the answer that may come with the purpose to save the poor tenant from any embarrassment.
Another good indication to measure steady cash flow and the capability of the tenant to make rent is by evaluating their income. There is a general rule of thumb to measure this- first multiply the monthly rent of the apartment by 40 and if their annual income does not exceed that amount, they can easily pay their rent. If you want some proof regarding the income, request their latest payslip or a signed contract with a company.
For many people, renting is a better choice than owning an apartment in the city of gold. That said, as the renters are increasing in the country, so are the frauds associated with renting. Therefore, a Dubai tenant credit check, as well as background evaluation, holds paramount importance to avoid future problems.
Since the tenant eviction can be a tough process, make sure you know everything about the person you are allowing to stay in your space from the beginning. By taking all the aforementioned steps, you can be certain that you are renting out your property to the best possible tenant.