When you rent a property in Dubai, you can choose between short-term and long-term rental. The costs and benefits of both are discussed below. Short-term rentals are seasonal, meaning that your returns will be lower in the winter than in the summer. On the other hand, long-term rentals pay fixed returns for the duration of the contract. But there are some disadvantages of long-term renting, including a long-term tenant taking time to find and leaving during gaps between contracts. However, long-term rentals are ideal for owners who don’t want to deal with these seasonal factors.
Long Term vs Short Term Renting in Dubai
There are pros and cons to both long-term renting short-term renting and long-term renting in Dubai . While short-term renting is fully regulated and supervised by the Department of Tourism and Commerce Marketing, long-term rental is often less regulated. According to Anna Skigin, CEO of Frank Porter, short-term rentals offer more flexibility and yields higher returns over a long-term lease.
In terms of flexibility, short-term renting in Dubai is generally more convenient for those traveling on vacation or relocating for work. The benefits of short-term rentals include the flexibility to rent out the property whenever you please without worrying about long-term rental agreements and renewal rules. Short-term rentals in Dubai are also available for certain types of units, such as vacation homes. Long-term rental agreements may be easier to enforce, while short-term leases are more flexible.
For those who are visiting for a longer period of time, renting a furnished apartment may be the best option. Many luxury villa owners are turning to short-term rentals because the annual rental rates are so low. While they are keeping an eye on their annual rental rates, they can still earn a decent income while leasing their properties. Long-term rentals may be better suited to vacationers, but the cost of living is higher.
Why you Need to Choose Short Term Rentals
Short-term rentals are generally a better option for investors because they generate higher returns for landlords. Generally, short-term rentals are for three to nine months and do not require a long-term commitment. In addition, short-term rentals are more affordable than longterm rentals because there are fewer vacancies. For this reason, they are ideal for those looking for short-term housing.
If you are thinking of renting a short-term apartment in Dubai, be sure to do some research to understand the market and your target audience. The city attracts fifteen million tourists a year, and the smartest investors cannot lose on this. There are many benefits to renting a short-term apartment or villa in Dubai. So, how do you decide which is right for you? You’ll find out with a free online rental app.
In addition to offering more flexibility, short-term rentals in Dubai offer higher rental income. Because they are fully furnished, you can save a lot of money on eating out during the off- season. While your cash flow will be irregular, your annual income will be higher. The biggest downside is that you may have a lower profit margin, but if you can manage to avoid paying maintenance costs on your rental, the benefits can be great.
Which is better?
There are two types of leases: short-term and long-term. Short-term leases are for six months or less, while long-term leases last longer than six months. While long-term leases tend to have more stability and standard rates, they may be more expensive. As a rule, short-term leases are better for those who don’t want to commit long-term.
In Dubai, homeowners typically own property for investment purposes. Historically, they opt for an annual tenancy contract. However, this pandemic has driven down annual rental prices. In the last 12 months, Dubai recorded a 9.75% reduction in its average rental price. Although rental prices are still low, the smartest investors are moving towards short-term rental models. This allows them to earn more money and have more time to consider their future plans.
One key disadvantage of short-term rentals is that they tend to have seasonality. While short term rentals are more lucrative throughout the year, their returns will fluctuate from month to month. Compared to this, long-term rentals typically pay a fixed return for the duration of the rental contract. The downside of long-term rentals is that they can take time to find a tenant, and the tenant can leave during gaps between contracts. If this is a concern for you, opt for long-term rentals instead.
Advantage of Short Term Rental to Long Term Rentals in Dubai
As a property owner, you should carefully choose which type of rental best suits your needs. Generally, short-term rentals are better for people traveling for work or vacation. This type of rental is often fully furnished and serviced. Most tenants agree to pay all utilities and taxes. In addition, short-term rentals are a good option for people who are not permanent residents of a city.
Another advantage of short-term rentals is that they give guests complete flexibility. Guests can move into a fully furnished property the same day, without activating utilities, and with only their passport details. Short-term rentals give guests the flexibility to extend their stay, while long-term leases lock the tenant into an agreement that keeps them locked in for a year. If you’re planning to stay in the property for longer, opt for short-term rentals.
Short-term rentals are often furnished and have fewer disadvantages than long-term rentals. Guests can save money by not having to eat out when they stay over. Short-term rentals can also help you earn more money on your rental property. While there are no guarantees, shortterm rentals in Dubai may still be better than long-term rental options. However, short-term rentals tend to require higher rents and may not be as profitable in the long run.
Costs
The short-term rental in Dubai is cheaper than a long-term one. It will also save you money on utilities and cleaning charges. Moreover, you won’t have to worry about paying separate rents for utilities and parking space. However, long-term rentals have certain disadvantages. First of all, you’ll have to pay an initial deposit. Second, you’ll have to pay the landlord once a year, which means that your rent is only payable once. Third, there is a risk that your tenant may leave the property during the time between the contracts, so long-term renting
is preferred by most tenants.
Third, a short-term rental requires less maintenance and upkeep. Long-term tenants require less marketing, key handover, and administrative work. Furthermore, they are less likely to be out of town or leave the UAE early. As a result, the short-term rental may end up costing you more in the long-run. However, if you’re only going to be in the UAE for a few months, the short-term rental is more expensive
In recent years, a short-term rental market has emerged in Dubai. It’s expected to grow in popularity in the coming years. In the wake of the pandemic lockdown, many expatriates have opted for short-term rentals in Dubai. A one-bedroom hotel suite would cost you more than threebedroom apartments, and a luxury three-bedroom apartment might cost the same.
How to Pay for Long Term and Short Term Rentals
Lastly, short-term rentals are usually cheaper than long-term rentals because they aren’t occupied all year round. They are also less likely to have wear and tear, although they may require more aggressive marketing. Short-term rentals also tend to cost more in the long-run if you choose to renew them. In addition, short-term rentals may require more maintenance and cleaning, which can end up costing you more money in the long-run.
Moreover, a short-term rental contract can be beneficial for expatriates, as it can help them save money on the rental contract. While renting in the UAE, there are different kinds of houses to choose from. A typical one-year contract carries heavy penalties if you decide to break the lease early. Therefore, it is important to do a thorough research on different properties before committing to a short-term rental in the UAE.
The costs of utilities are not included in the rent in the UAE, and you’ll have to set up separate utility accounts with the emirate. You’ll have to pay approximately 500-600 AED (133-163 USD) for utility bills every month. These numbers will be higher if you live in the hottest months. Utility companies in Dubai, Abu Dhabi, Sharjah, and the Northern Emirates provide state-of-the-art facilities and services. Most bills are easily paid online, and the vast majority can be paid by visiting kiosk machines.
Short-term rentals also allow you to choose when to live in your property. If you plan to move to the property later, you can terminate the short-term agreement. The annual lease is also more expensive than the long-term model because it ties you legally. If you decide to live in your home, you can return to the traditional long-term tenancy. Its important to remember that a long-term rental means you’re locked in for several months.
