Why You Should Consider Short Term Renting in Dubai

Benefits of hotel apartments and why you should consider short-term renting in Dubai

No doubt the real estate market is prospering in Dubai. There are no property flippers increasing the property prices here and rental returns are really good too. In 2016, we saw a substantial increase in genuine demand from people intended to live in the properties they were buying. Experts pointed out that this was due to the high rents and increase in Dubai’s expat population. Considering these trends, one may think of buying a property and placing it on rent to benefit from the current condition of the market. But there are better options in the market such as short-term renting and investing in hotel apartments.

Rents for residential properties in Dubai are generally paid annually unless agreed otherwise. This means that you also have to wait for a year to get your rent. Then there is the worry of paying the utility charges on time so your tenants can live in peace. Also, if you are looking to increase your rent per the market trends, you still have to wait for the contract to expire and inform the tenant three months prior contract expiry about the rent increase. Sounds like quite a hassle, doesn’t it?

Hotel Apartments

Well, there is a better way of benefiting from the high rental yields of Dubai properties. We all know that Dubai is strong in tourism. Millions travel here to shop at bargain prices and enjoy the rare luxuries Dubai has on offer. So why not invest in a hotel unit and benefit from the high profits all hotels get from the tourists? After all, the hotel will maintain your property per international standards. And you won’t have to worry about timely paying the maintenance, utility or service charges.

Short-term Renting

Another way of benefitting from the high tourist turnover of Dubai is to invest in an apartment or villa and placing it on short-term rent. Short-term rent in Dubai is defined as leasing a furnished property for a period of one month or more. You will be needing a permit from Real Estate Regulatory Agency if you wish to let your property on a short-term.

There are many tourists who intend to stay for a month or longer in Dubai. For such long stays, a hotel room becomes really unaffordable. There are also tourists who prefer a more home-like experience and prefer furnished apartments over hotel rooms. These people are easy to get along with and live peacefully so you don’t have to worry about complaining neighbours as well.

You can bank on such tourists by buying an apartment or villa near popular tourist hot spots. Furnishing per hotel standards is important if you wish to secure good rents. Short-term rents are better for a landlord, as tourists always pay a bit higher on short-term stays than annually paying tenants.

There are many tourist hotspots in Dubai where you can buy properties and place them on short term lease. The most popular among them are Jumeirah Beach Residence, Downtown Dubai, Dubai Marina, Palm Jumeirah and Deira. Dubai Expo 2020 is less than three years away and the emirate is developing rapidly to prepare for it. The government is already expecting 20 million tourists for the event, so just imagine the revenue you can collect by having multiple properties on short-term rent in popular tourist hot spots.