Short Term Rentals Are Good For You!
If you are an investor in Dubai’s real estate, leasing out your property is the best way to earn the highest returns. Currently, the market is witnessing an overflow of supply whereas demands from tenants are becoming increasingly specific. Tenants are looking for shorter-term commitment and in the process, your property is losing out on yearly rentals.
Enter: Short Term Rentals
Short Term Rental is when a property is leased out for a contract that is shorter than a year and can be for 1 night or up to180 days, depending on the landlord’s convenience. It also has a daily rental option wherein interested tenants can rent homes on a daily basis. In the era of disruptive markets like AirBnBs, Oyo Homes, and BnBME, short term rental holds a huge advantage. Not just for tenants, but also for landlords as well as the market.
In Dubai, we have 20,700 units registered under short term rental. These homes are mostly concentrated in touristic places like Dubai Marina, Jumeirah Beach Residence, Palm Jumeirah, and Downtown. Due to the rise in the vacancy period in a 3-year cycle, landlords have to cut down on rent. With over 300% increase in the number of homes by 2020, leasing out homes for a shorter-term seems inevitable and highly profitable.
What’s in it for the tenants/visitors?
- Visitors are choosing short stay home over hotels for a more authentic experience. There was a stark 64% increase in preference for short-stay homes vs. hotel living.
- Furnished short stay homes with amenities add to its appeal amongst the tenants.
- Shorter commitment means a lesser need to pay large sums of money at one go.
- Holiday homes cost lesser than hotels, which is why visitors are opting for short term places.
- Holiday homes provide more flexibility for tourists when compared with a hotel.
- Facilities provided by the Holiday homes provide a special appeal to the visitors: WiFi, kitchens, washing machines, pools, and gyms, etc.
- Holiday Homes can accommodate larger families given the varied sizes of the homes.
Why should landlords opt for a short stay lease?
- It promises a higher yearly yield and shorter period of vacancy.
- Short stay contracts require no Ejari registration of the said contracts.
- It is fiscally sound and encouraged.
- In Dubai, a 25-40% increase in earnings through short term rentals has been reported.
- Hassle-free property management wherein the operator takes care of furnishings, maintenance, and marketing of the property.
- With a higher influx of tourists and business travelers, short term rentals are gaining higher popularity
This operation is done under the DTCM rules and regulations. The DTCM has provided incentives for holiday homes in Dubai.
- They ensure the protection of property owners and tenants.
- They have well-defined standards for any property that has to be let out as a holiday home.
- With a strict licensing process and easy registration, the DTCM has made holiday homes one of the best options for tenants and landlords alike.
Short Term Rentals in Dubai promise to take care of your property, it’s marketing, and upkeep, as well as attending to your guests and getting the best price for your property investment.