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Dubai Real Estate operators can make or break your investment. The short-term rental sector of Dubai real estate has changed significantly over the last ten years from its humble beginnings as a source of supplemental income, to become a structured system for tourism created through government regulation, technology and consumer demand around the globe. In what has become one of the world’s most sophisticated short-term rental markets, landlords are now competing with each other for guests rather than simply renting out their homes.
With the competition so strong, the question is no longer “Should I hire a holiday home management company?”
It is “Will the real estate operator I choose be able to protect my investment?”
This is the main difference between hiring an established, structured holiday home management company versus a smaller or newer company. The differences between these two types of companies are not based on style. They are based on operational issues, financial issues, technical issues and regulatory issues. These are the issues that will determine whether a landlord receives regular income from his property or experiences problems he did not have to endure.
The Hidden Cost of Choosing an Inexperienced Property Management Company In Dubai
Most landlords believe short-term rental success is based more on operational discipline than flexibility/competitive pricing for a small operator.
Although a small operator will be able to provide more flexibility as compared to a larger operation or lower rates, this savings in rates is typically short-lived once they realize their fee savings are eliminated by:
- An inability to take advantage of price spikes in the marketplace
- Losses from guest cancellations due to delayed repairs
- Lower listing visibility due to poor reviews
- Fines imposed by the local government based upon non-compliance
- Losses incurred as a result of refunds made to guests due to problems experienced during their stay
- Failed inspections caused by a lack of standardization
Regardless of the above, the outcome is always the same – it results in instability.
On the other hand, an established property management company like Deluxe Holiday Homes will utilize its size and scale to increase the returns provided by the landlord through strengthening all of the areas of the landlord’s return:
- Consistency in housekeeping standards results in increased guest reviews
- In-house maintenance eliminates downtime
- Daily adjustments to pricing made by dedicated revenue managers
- Increased ranking position through strong partnerships with online travel agencies (OTAs)
- Real-time monitoring of nightly pricing through advanced property management system (PMS) ensures that no nights go unpriced
This is not a theory. This is the operational foundation of companies such as Deluxe Holiday Homes. Their in-house PMS, Scale PMS, provides the ability to monitor performance across 800+ properties on a daily basis which enables them to optimize their pricing and create pricing advantages over competitors that smaller operators cannot compete against.
In reality; an established operator does not help you “do well.”
They help you to outperform.
How to Choose an Established Real Estate Operator in Dubai
Selecting the best operator for your rental property in a highly regulated, year round tourist destination is becoming a key strategic decision that significantly impacts your property’s long term revenue potential and its overall protection.
There are many things that define an experienced and established real estate operator. The logo, the website, the number of followers on social media and the awards won, etc. are all secondary to the people, systems, and processes that exist behind the scenes to produce and maintain each and every booking, each and every review, and each and every guest experience with the same level of precision and efficiency as a hotel.
Here are the six main criteria to consider when evaluating an operator before turning the keys to your rental property:
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10 Years of Experience in Dubai Property Management
Experience takes time to develop and in this industry, a decade of providing rental accommodation in Dubai equates to tens of thousands of guests, countless changes to laws and regulations, numerous market cycles, and many improvements to operational processes that new companies are unlikely to have encountered.
Operators with ten plus years of experience in Dubai have been able to survive through the transition phases of the sector; from the early days of Airbnb and Dubai’s unstructured regulatory environment to today’s structured regulatory framework and seasonal fluctuations in occupancy rates and pricing.
For example, professional Airbnb management companies such as Deluxe Holiday Homes, who have been in operation for more than a decade, illustrate why longevity in the rental market is important: it demonstrates institutional knowledge, operational maturity, and the ability to grow and expand successfully in a highly competitive market.
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Evaluate the Operator’s Internal Structure — Not Just Their Marketing
One of the best ways to determine if an operator is professional is by examining their internal team and their organizational structure.
Outsourcing is a very common practice in the Dubai holiday home rental sector, however, outsourcing to freelance workers often results in inconsistent cleaning, slow maintenance responses to issues and a lack of predictability regarding guest experiences.
Typically, an established and professional operator will make significant investments in their employees. Established operators employ hundreds of full-time employees including housekeepers, maintenance personnel, guest relations personnel, revenue managers and support staff. These levels of employee staffing provide the necessary structure, speed, and accountability for producing and maintaining high occupancy rates and good review ratings.
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Check Whether the Real Estate Operator Uses Commercial Grade Technology and Software
Accurate pricing and effective coordination of daily operational activities are two primary areas where commercial grade technology and software play a role.
Only an experienced and professional operator will utilize a Property Management System (PMS), which combines pricing algorithms, calendar management, housekeeping scheduling and guest communications into a single platform.
In addition to using third party software, some professional operators create and use their own proprietary systems, such as Scale PMS, utilized by Deluxe Holiday Homes, which provides them with greater control over performance data and the ability to adjust prices multiple times per day.
The use of this type of technology enables increased revenues, improved ranking positions on booking platforms, and reduces human error.
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Determine Whether the Property Management Company Has Received External Validation and Recognition Within the Hospitality Industry
Awards and media recognition from reputable sources are important, but primarily serve as confirmation of an operator’s performance and reputation. An operator that receives external validation and recognition from respected hospitality organizations and publications, serves to validate their delivery record and performance versus their marketing efforts.
Deluxe Holiday Homes has repeatedly stood out as one of the top property management companies in Dubai while searching for them. The firm has annually earned the title of the “Leading Short-Term Rental Management Company in Dubai” and was recognized by major publications such as Khaleej Times. They have continually demonstrated their dedication to providing excellent service through these awards and to being at the forefront of the hospitality business.
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Evaluate the Size of the Operator’s Portfolio Based Upon Quality Indicators
While the size of an operator’s portfolio may tell a story about the operator’s size and scope, the size of the portfolio must be evaluated in conjunction with quality indicators.
An operator with a large portfolio (i.e., 800+ properties) that consistently achieves high review ratings through major platforms like TrustPilot , and maintains high occupancy rates is demonstrating extraordinary operational stability. The operator’s systems must be capable of handling the volume of properties without sacrificing the quality of the guest experience.
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Interview the Holiday Home Operator’s Leadership Team
An operator’s leadership team is likely to reveal much about the operator’s values and philosophy toward business. Most established operators are founded by individuals who possess a deep understanding of both the hospitality and real estate industries and remain actively involved in the daily operations of the company.
Their long term vision will guide virtually all decisions made by the operator, including pricing strategies, regulatory compliance, employee training, and technology investments.
Compliance and Reputation: Non-Negotiables for Dubai Property Management
The reputation of your operator will be reflected in your properties’ reputations.
When evaluating potential partners for the management of your property, pay close attention to who leads the company. The vision and philosophy of a companies’ leadership can provide insight into how they think about investing, growing their business, and creating their future. Senior management at established firms in Dubai typically have a large say in defining operational standards, and developing long term strategic plans for their company.
Artyom Meltonyan, CEO of Deluxe Holiday Homes, views his company’s philosophy through the lens of discipline and consistency as he reflects on the challenges associated with performing in one of the world’s most rapidly evolving hospitality markets.
“Dubai’s hospitality landscape changes every quarter,” Mr. Meltonyan said. “An operator’s duty is to remain ahead of the changing landscape of hospitality in Dubai, and not simply follow the direction of the hospitality industry.”
Mr. Meltonyan explained that a critical component of maintaining this competitive edge is having structure within the organization including; In-house teams, ownership of all technology systems utilized by the organization, and a consistent culture. He stated that having these elements of structure creates a protective environment for the investor to continue to maintain value in their investments over time.
For landlords looking to protect the value of their property, increase occupancy rates, and work with an experienced team of professionals, a meeting or consultation with a leading operator may provide them with valuable insights into possible options available to them.
Deluxe Holiday Homes offers landlords the opportunity to schedule a complimentary consultation with a representative of the company to discuss projected performance, compliance with applicable laws, and customized property management solutions based upon more than 10 years of operational expertise and utilizing a fully in-house staff of employees.
