The real estate market in Dubai is booming, and now is a better time than ever for property owners to take advantage of these optimal conditions for renting out their property as temporary housing.
On any given day, Dubai is flooded with many travelers all looking for comfortable and convenient accommodations. This means that rent rates are rising, and there is increased demand for temporary housing catering to the expat and temporary visitor population who don’t want to pay extreme hotel prices for a prolonged stay of a month or more.
The good news for property owners in Dubai is that short-term rentals are now permitted for anybody who is interested in providing temporary housing in Dubai, with a few catches.
So, is it worth it?
Many property owners are finding that the extra effort more than pays off in perks and returns.
Here is why property owners in Dubai might want to consider taking advantage of the lucrative temporary housing market.
Short-term rental property is a smart investment for any Dubai property owner. Short-term renters are willing to pay more for a furnished short-term rental than they would for a long-term annual contract.
When it comes down to it, short-term renters are looking for the convenience of having everything already provided. They are always willing to pay more for it. This means that short-term property owners will get back more on their investment. This is particularly true of property in areas heavily frequented by tourists.
In Dubai, rent is collected on an annual basis unless it is otherwise stated on the lease agreement. This means that landlords are often left paying extra property charges (like utilities) without the extra source of income.
On short-term rentals, landlords never have to risk falling short on cash while they wait for the rent to come in.
On long-term rental agreements, property owners have to wait until the expiry of the annual lease contract in order to increase the rent. If the owner fails to give three months’ notice, they will not be eligible to increase rent until the following year.
Short-term rental contracts allow Dubai property owners to avoid these legal caveats and adjust rent to be in line with the actual market values every time a new tenant comes in.
It is no secret that Dubai has a thriving tourist economy. However, many people find hotels in Dubai expensive to afford. This means that property owners can offer accommodations that provide an alternative to hotels without having to worry about proving the same level of service.
Like anything, one of the responsibilities required of property owners is to build relationships with their renters. This ensures that the transaction goes as smoothly as possible. And prevents unnecessary confusion from arising between the parties.
A surprising perk of having frequent turnover in a rental property is that property owners get the opportunity to meet and interact with many interesting people. This is particularly true in Dubai. The city attracts many high-profile business clientele who can provide a useful contact to have around in the future.
Despite all the obvious perks of providing short-term rentals in Dubai, many property owners remain dubious. After all, this means more potential tenants to screen in addition to contributing more to upkeep, cleanliness, and maintenance. Sometimes, it can seem like it is just easier to have a long-term renter.
At Blueground, we have created an easy way for property owners to bypass all the downsides and reap only the benefits of short-term rentals. Not only do we guarantee a 100% occupancy rate, but we promise to maximize your properties’ annual yield. Even better, we take care of the screening process for our clients. This means property owners never have to worry about taking on a bad apple. Those concerned about taking on extra help with cleaning and maintenance can rest assured that we have that covered as well.