# Rental Negotiations



## mattsharpe (May 28, 2010)

Hello - newbie here moving out to Dubai in July.

I got a question about the rental market out there as from what I gather rents are continuing to fall and supply continues to outstrip demand. On that basis I'm assuming that as a new renter I'm in a good position to make offers significantly lower than asking price? 

I'm interested in looking at a 3-4 bedroom apartment in JBR and from a look on sites like dubizzle I gather the average asking prices for these are around the 170 - 210 mark. How realistic do these prices seem in the current market? Would offers 20%-30% lower than that be seen as acceptable? Anyone with recent experience in this? Is there truth in the rumour that in the summer rents are generally lower? I'm also reading some horror stories about some less than reliable agents out there - any advice on how best to navigate through any issues? 

Many thanks in advance!
Matt


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## frenchy (Feb 3, 2010)

*On the same boat*

I'm in a position for provide 1 check for the year's rent. Saw a 4Brd Villa in Jumr Islands for 260K, is there a remote chance the Landlord will accept 220 K ?


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## Maz25 (Jul 6, 2008)

frenchy said:


> I'm in a position for provide 1 check for the year's rent. Saw a 4Brd Villa in Jumr Islands for 260K, is there a remote chance the Landlord will accept 220 K ?


Only one way to find out - make him an offer and see what he comes back with. You are definitely in a strong position if you can pay in one cheque but it ultimately comes down to the landlord. Some landlords can afford to leave the property empty, hence they are not as eager to accept offers significantly below their asking price.

On average, based on my experience, you can get about AED 5 - 15k off the asking price. Higher discounts tend to be offered to people renewing their current rent - this is merely an adjustment to their rent to reflect the correction to the market during the one year that they have occupied the property.For a new contract, I would not expect more than AED 10k off the price, unless as in your case, you can pay in one cheque and/or you end up with a desperate landlord.

Prices are continuously falling though and that will work in your favour. As the summer approaches and a large majority of people head home for a few months, there are more empty properties on the market and that may be the best time to get huge discounts off the asking price.


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## mikeyb (May 15, 2010)

Also check whats included, some apartments include cooling charges etc, some dont. Other things to check if its an apartment, car park space, utilities, maintenance charges etc etc

As for agents they can be a bit hit and miss, some will not ring you back, others are eager and very keen to get your business, factor in 5% charge for an agent.


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## Maz25 (Jul 6, 2008)

mikeyb said:


> As for agents they can be a bit hit and miss, some will not ring you back, others are eager and very keen to get your business, factor in 5% charge for an agent.


True but for some weird reason, I find that right after I sign the lease, all the other agents who had previously ignored my calls, suddenly seem very keen to show me properties!

I just signed the lease for a new place and I previously had an agent who was not so keen to show me the apartment because I had indicated a move-in date of mid June. Another agent, who is now the happy recipient of my agency fee, showed me the same apartment and I liked it enough to actually want to move sooner than planned. Agents seem to have not sussed out that, in my case certainly, I do not care who shows me the apartment and who pockets the agency fee, as long as they find me an apartment that I like. Quite happy to let them drag their feet - explains why some agents never seem to have any clients whilst others seem to be doing just fine!


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## terf (Apr 21, 2010)

Maz25 said:


> For a new contract, I would not expect more than AED 10k off the price, unless as in your case, you can pay in one cheque and/or you end up with a desperate landlord.


Wow only 10k off? I really thought you could get a better deal as there was an oversupply of properties on the Dubai market.


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## sandypool (Sep 12, 2009)

I think the thing is the list prices themselves have already come down a bit. Just look down the road at the Abu Dhabi prices to see how much more they could be on at. 1 Bed appartments in the newly finished appartment blocks such as those on Reem Island are going for in excess of 150,000AED per year. In Dubai larger 1 beds in the Marina are listed at half this.


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## Elphaba (Jan 24, 2008)

terf said:


> Wow only 10k off? I really thought you could get a better deal as there was an oversupply of properties on the Dubai market.


There are far less villas than apartments, so the latter are where you can really negotiate. 

I do think that AED 260k for one of those Jumeirah Island villas is pricey.

-


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## terf (Apr 21, 2010)

Elphaba what do you think would be a reasonable offer to make on an apartment being advertised at 150k AED in JBR?


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## wandabug (Apr 22, 2010)

Go in at 120k/ 1 chq. but ultimately it is up to the Landlord. If it is an exceptionally nice apt (nice view etc) there may be enough interest in it for the landlord to hold out for the asking price. If it is a crappy apt he may accept it. Although there is alot of properties available, there is alot of internal movement due to the drop in rentals and people moving into larger properties than they were unable to afford when the rents where so high. At the end of the day good properties are still renting fast, the crappy ones don't. 3 beds are renting for 120k in JBR but not with full sea view. Don't forget that you will have to pay for your A/C separately at JBR and it is high. The Landlord will not include it in the rent as he is already paying the service charge and that is high too.


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## terf (Apr 21, 2010)

Thanks wandabug. Would you happen to know the average cost for A/C for a 3 bed apt?


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## katiepotato (Apr 29, 2008)

terf said:


> Wow only 10k off? I really thought you could get a better deal as there was an oversupply of properties on the Dubai market.


I got my rent reduced by AED25k from last year's contract when I renewed in April. My landlord didn't want to budge to start with - but given that there were plenty of similar properties in the area for lower prices he came round in the end


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