by: Adnan Mahmood
Carlton Real Estate
Today, the rental market is facing enormous challenges as competition is increasing, costs are rising and occupancy rates are driving down rental prices. Real tenants are hard to find.
So, whether you are a small or big landlord, you need to be flexible and open-minded as most tenants are expecting more for less and they are becoming less loyal than before. Additionally, the increasing regulatory burden comes with new laws, which make it harder for investors to rent their properties at a decent rental amount.
As this is part of the general real estate lifecycle that most markets will go through at a particular point of time, as an investor, you have to be realistic about the situation and deal with it as sensibly as possible.
Simply put, the market is tough and, therefore, flexibility will play a major role in concluding any deal in such market conditions, especially when you have a mortgage to pay at the end of the month or bills to take care of.
Statistics show that the longer the property is on the market, the lower rent it will bring. So, please do not underestimate your real estate agent when he or she advises you about the preferred rent you can ask for in such market conditions.Credible and trustworthy agents do not want you to lose the deal and be out of business. When you are out of business, they will no longer have a property to rent out. Their main aim is to keep you going and generate some income rather than no income at all which can harm you in the long run.
Speaking of trustworthy agents, maybe it is time to check your agents’ credibility and make sure that you are dealing with officially certified and licensed brokers registered with the RERA (Real Estate Regulatory Authority) in Bahrain. Make sure that they have the right trade credentials which enable them to offer your property for sale or rent, since it is now mandatory for all brokers to be registered with RERA under Law No. 27 of 2017 which officially came into effect on March 1, 2018.
It is not safe to deal with unofficial, unlicensed and unregistered brokers anymore as they have proven to be risky and cannot be trusted. They would be the first party to disappear when a problem happens after the deal is completed and they have taken their commission.
So, it is better to be safe than sorry as the consequences of their unprofessional acts could be severely damaging to you.