Sign in
Sign up
Dubai has become one of the most sought-after tourist destinations, catering to both business travellers and those seeking a top-notch vacation experience. The world is taking notice, and with the increasing number of travellers, there is significant interest from those opting to rent properties rather than stay in hotels. The city's allure attracts many people to establish a base for frequent visits. This presents a lucrative opportunity for property owners in Dubai seeking new business avenues based on short-term rentals, generating additional income.
Content:
Long-term and short-term rentals
Two important factors should be considered: long-term and short-term rentals. Before choosing a rental plan that suits your needs, there are factors that need to be taken into account, such as:
- Net profit
- Booking frequency
- Property location
- Property management
- Maintenance costs.
For instance, if you lease a short-term apartment in Downtown Dubai, you typically receive an additional income of about 33% over three years compared to long-term leasing.
Another factor to consider when choosing between these options is the lack of flexibility in increasing rental prices. One-year lease agreements are tied to a fixed price, limiting potential cash flow from the rented property.
In terms of short-term rental opportunities, it effectively increases the likelihood of higher profits since you can flexibly adjust rental rates based on demand. Let's examine some points for better clarity.
Income increase potential
An owner leasing a home short-term can easily adjust the rental price according to current market rates, thereby increasing rental income. Depending on demand, short-term rentals can bring in rental income 3-4 times greater than long-term rentals.
Advantages of short-term rentals
Simplified maintenance
Short-term rentals simplify regular home management. By hiring a property management company, one can outsource services such as furnishings, utilities, and other household services, avoiding self-service and dependence on tenants. Technical maintenance in the case of long-term rentals can be burdensome to manage.
Increased flexibility
Another key advantage when choosing short-term rentals is the ability to sell the property. We see many more options in choosing a short-term rental plan with luxurious properties that generate income without burdening the owner too much. Apartment and house owners might consider experimenting, given the explosive growth in tourism in Dubai, to earn extra income.
