- June 7, 2022
- 826
- Real estate
A property reservation can be a smart move to make sure a great asset will belong to you. However, unforeseen circumstances might make you consider stepping back on your purchase. Before you decide to cancel this agreement, you must weigh how the pros and cons of this decision will affect you. A cancellation comes with consequences, so you need to study if they are worth undertaking.
In this article, we will go through everything you could lose if you cancel a reservation for an asset. We will look at the policies and refund rules that define how this process works.
1. What are some of the main advantages of booking real estate online?
2. How are the coronavirus rental homes booking cancellation policies in the UAE and the safety practices?
3. Which are the different ways property managers can handle cancellations effectively amidst the pandemic?
4. Why property reservations are canceled often and how can you solve it?
5. What are the property booking charges and the rules for refunds in Dubai?
6. Why do vacation rentals need to implement more flexible property booking cancellation policies?
7. How can Connect Property services help you make a property reservation faster in Dubai?
1. What are some of the main advantages of booking real estate online?
Usually, when a notorious real estate residential project launches, numerous homebuyers wait to make a property reservation. Because of the increased competition, there is the possibility that you do not get the home you desire. Instead, you might end up settling for a whole different home.
When deciding on investing in real estate, you should have the property you truly want. This is why it is important to book a property in advance. Making it will offer interested homebuyers several advantages.
1.1. Qualified for special discounts
When developers open their residential projects to a select few for property booking in anticipation, they also offer them at lower prices. In fact, they even offer their properties at approximately 20-25% lower than the post-launch costs.
1.2. Get the first choice of inventory
When you choose to make a property reservation, you have complete freedom of choice. In this way, you can select which unit you desire to invest in. It does not matter if it is the apartment with the best view of the project or the home that fits your family and personal needs.
1.3. Removes buying risks
One of the main reasons most investors are hesitant about the reservation of properties is that they cannot see the actual unit before booking it. Unlike ready-to-move-in houses, buyers do not have the opportunity of inspecting them before their finalization. However, choosing a property by a respected developer can remove the risk associated with the booking. You can be confident of the timely delivery and quality of the project.
1.4. Omit paperwork hassle
For first-time buyers, the paperwork associated with buying residential property can seem daunting. When you book a property, you can skip many of these paperwork-related issues and simplify the process.
2. How are the coronavirus rental homes booking cancellation policies in the UAE and the safety practices?
With the arrival of COVID-19, many property managers and guests were unsure how it was going to affect their upcoming property reservations. On the whole, it depends on where the property is and when the guest made the booking. Additionally, the channel through which the booking was arranged is also important.
In such a manner, many home rental platforms in the UAE offered special coronavirus policies focused on reducing the impact on both guests and owners. Besides, customers are more aware of the risks of making a property booking and their safety measures. These rental home cancellation policies have evolved and expanded as time passed. Some of the best practices were these:
2.1. Listing practices
Rental homes in the UAE updated their cancellation policies, and the majority of them adopted more flexible or moderate policies. As a matter of fact, numerous guests look for properties with less rigid cancellation policies. Additionally, they reviewed their safety features and added local hospitals and emergency numbers.
2.2. Cleaning standards
Vacation rentals implemented the guidelines for cleaning their holiday rentals and followed guidance from UAE Centers for Disease Control and Prevention.
2.3. Travel restrictions
Rental homes also started reviewing the jurisdiction’s local travel recommendations and restrictions and acted under the guidelines from the World Health Organization. They blocked or temporarily hid their property listings when there was a travel restriction in the zone. Unlike some accommodations, they established not to cancel a property booking based on the guest’s country of origin.
2.4. Guest communication
In this aspect, these short-term rental properties encouraged guests to follow emergency orders or local laws and assert the seriousness of the current situation. Besides, owners avoided giving health-related advice or recommendations.
3. Which are the different ways property managers can handle cancellations effectively amidst the pandemic?
For a property manager, it might not be easy when a client cancels a property booking. This event certainly brings planning and scheduling difficulty to your business. However, it is important to understand that the reasons for a cancellation are very often outside of anyone’s control. Unprecedented events such as the COVID-19 pandemic are a great example of this. The client might also have personal reasons to cancel, which must also be respected.
Because of this, the most important thing to do when you are faced with a cancellation is to wisely think about what to do next. To start, you need to determine what type of cancellation you are dealing with:
- Traveler-initiated cancellations do not affect your rankings, but the only consequence is that you lose a property booking.
- A cancellation made by the property manager does affect your ranking within a site, and if it happens too often, it might lead to removal from the platform. Some property manager cancellations can still affect your real estate listings visibility.
In order to deal with either of these cases, you have to consider how to handle the issue in a way that will not hurt your relationship with a client. Before jumping into a refund, ask your customer if they are willing to postpone their property reservation. This way, there are no cancellation fees and your raking metrics stay the same.
If a client is unable to reschedule, it is best to accept their request to cancel. Some individuals might ask that you cancel the property booking for them to avoid the canceling fees, but they must do the process on their end and accept the charges. As previously stated, if it seems like the cancellation was made by the property manager, this will negatively affect platform ranking.
4. Why are property reservations canceled often and how can you solve it?
Very often, property managers make their assets available in different ways. If they want to make a home for sale listing, it might take a few months to find a potential buyer. In the meantime, they can also list the house as a short-term holiday residence.
If this is the case, a traveler that plans to stay here might see their property reservation canceled if the asset is suddenly sold. When this happens, the traveler should be notified as soon as possible of the situation and be granted a full refund. Most owners and agents will handle the situation professionally and pay the money back immediately, as well as offer accommodations and residence alternatives.
Moreover, although it is currently not a common problem, a cancellation might happen due to a double booking. This is when the owner and an agent both advertise the property on separate platforms and get a client on the same date. A double booking is simply a communication mistake, and it will also lead to a full refund and potential accommodations.
5. What are the property booking charges and the rules for refunds in Dubai?
As a homebuyer, when making a property reservation, you need to be aware of the fees you might incur to get a property allotment. Besides, for all of the charges, the procedure to receive a refund in Dubai is different. For this reason, you must understand the RERA rules for refunds. In case you face trouble in getting what is due to you. These are the usual charges you should know about:
5.1. Token money
According to the RERA rules, the builder has the right to forfeit the token money payment. Given that they have suffered a loss as a result of the property booking cancellation. However, the builder has to refund the balance within 45 days of the cancellation.
5.2. Property registration charges
When registering a home, you need to attempt a property registration slot booking. Next, you will have to register the property with the recorder by submitting the contract to the sale and sale deed. Then, you are required to pay the property registration charges, which are non-refundable.
5.3. GST charges
If you make a reservation of a property under construction, you will have to pay a certain amount towards GST. The amount is a set percent of the property’s market worth. The refund is up to the builder, based on whether or not the amount was deposited with the government.
Therefore, as a homebuyer, if you have invested after comprehending the RERA approvals for properties, you have numerous advantages in terms of refund for property reservation cancellation.
6. Why do vacation rentals need to implement more flexible property booking cancellation policies?
The traditional accommodation industry has given guests the expectation of easy cancellation policies when they book a vacation rental. However, any property manager understands that their cancellation policies cannot be immensely flexible. After all, a short-term house rental business cannot count on walk in-traffic to snatch up all the lost bookings as hotels do. But stricter cancellation policies can make the guests hesitate before committing to your rental.
Against this background, it may seem counterintuitive to offer a flexible cancellation policy. But actually, it can be an excellent strategy to increase your overall number of property bookings. By listing your rental home in the flexible category, you can make your properties more attractive and reach a wider audience. In fact, numerous guests do not consider vacation rentals that demand a more serious commitment.
On the other side of the spectrum, vacation rentals that offer more flexible cancellation policies can see a slight uptick in cancellations but a high increase in general property reservations. Over the years, property managers who have implemented flexible cancellation policies can enjoy a raise in the net occupancy rate and performance. In this way, making up for the increasing booking cancellations.
For best results, property managers should choose a flexible option within channels while protecting themselves with a wisely crafted reservation of property agreement.
7. How can Connect Property services help you make a property reservation faster in Dubai?
On Connect Property, we give you the necessary tools to find the property you need and make a reservation swiftly. Search through many assets across the UAE by filtering them with details such as location, characteristics, and pricing. Once you find your desired asset, you can easily get in touch with its manager and immediately make a property reservation.
If you ever find an issue or have a question on what you should do next, make sure to contact our 24/7 support hotline. We are ready to assist in any decision you need to make.
Let us help you make a successful reservation for a property today. If you want to talk to a specialized advisor from our team, call us at +971 43 316 688. You may also send us any other inquiries through our email at contact@connectproperty.ae. We will gladly help you.
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