How to save 25% on your rental

It has really turned into a buyer’s market for rentals now. Dubai Rental property is dropping fast in price, and the landlords are very nervous. So here is a little help to your strategy to get a better property at a better price than advertised.

Tip 1: Be well prepared – know what you want and what other properties in the same area and size are advertised at. Make sure to let your potential landlord know that you are very well informed about what is going on in the building or area.

Tip 2: Set a budget you maximum want to pay incl. of maintenance charges. DON’T deviate from your budget.

Tip 3: Make sure you give the landlord more than one option in your negotiation. Demanding a discount of 20% might not work on its own. If you give someone the choice of 2 options – the will quite likely take one of the two instead of refusing in total. That is human psychology.

1. So either 25% discount in 4 cheques

2. Or 20% discount in 12 cheques.

But feel free to set you own options towards the landlord and don’t make them too unrealistic. You could ask for new kitchen appliances or the landlord covers chiller cost, or a satellite dish on the roof, or curtains for the property. Don’t demand 50% discount... That will properly not fly. Some landlords of course will not bounce, but they will be the ones with empty property even next year.

Tip 4: Don’t accept 1, 2 or 3 months free rental. It is an estate agent trick. That will increase you contract cost next year, where prices are likely to be even lower. It is better to get the cash value of the contract down.

Tip 5: Remember you can always negotiate on who pays the estate agent fees, and how much the estate agent should get. If you know the property you are looking at is advertised by 3 different agents – play them against each other. The agents are desperate for cash so they rather take 2,5% than lose their agents fee to someone else. The agents are used to share their commission with other brokers – so that is usually a very easy win.

Tip 6: Relax… and wait for a response – it will take a week or two but eventually someone will bite the hook and accept your offer.

Negotiation results

So what is the result of such a strategy? We have spoken to quite a lot of people who have taken new rentals this month. And the strategy works. The landlord will start by refusing – but after a week or two – they will call back and accept your offer. Of course there are no guaranties – but it is a buyer’s market – even in the rental market. So we know of small 4bd Palm villas gone for AED 300.000/pa. Jumeirah 1 compound villas for 220-250.000, and many more like that. Most of the deals they managed to negotiate a price discount of 20 to 30% and minimum 4 cheques.

Let us know how your negotiations turned out on This e-mail address is being protected from spambots. You need JavaScript enabled to view it   - and send us your tips for getting the best deal.