Landlord’s POV: Short-term or Long-term?
In the era of staycations and globetrotters, landlords across the world are beginning to wonder if leasing their apartments is truly the way to go. Major tourist destinations in the world, especially, a city like Dubai have appealed to the masses, with the promise of a glamourous lifestyle, record-breaking destinations and in simple terms, a dream vacation.
Following the EXPO 2020, Dubai rated itself, as one of the highest tourist hotspots in the world, making room for ex-pats, tourists and visitors from every corner of the world. With the Dubai Property Market remarkably booming since it took its big hit during the Pandemic, property investors in the city are beginning to recount their steps to see what the best fit for them is.
We spoke to our expert team, to debunk the big question: Should you Lease your property or sell it?
What’s The Difference?
Short-term rentals are properties that are rented out for a period of less than six months, whereas long-term rentals are based on annual rental contracts. Dubai’s EJARI system also requires all rental properties on annual and long-term contracts to be recorded on their RERA (Real Estate Regulatory Agency) system, to legalize contracts between tenants and landlords in Dubai.
Short-term rentals, on the other hand, do not require to be registered with EJARI and can be let out on a more flexible basis ranging anywhere from daily to weekly, and monthly contracts.
Leasing Your Property in Dubai
Depending on which part of the world you’re in, your real estate investment can have wildly differing outcomes. Dubai, for instance, is hailed, as the leading tourist destination across the world. Which only makes sense for it, to be a leading spot for short-term rentals, holiday homes and BnB’s.
2022: The ERA for Holiday Homes?
Most tourists and ex-pats prefer a homely touch to their vacations. Compared to Hotel Apartments, Flexible furnished apartments for rent have been a popular choice in the city due to their hassle-free experience, access to A-Z appliances, as well as all-inclusive utility bills.
We at Deluxe Holiday Homes, as an award-winning short-term rental company in Dubai, provide a plethora of pathways for landlords to increase their ROIs. It is no surprise that managing a property can be a herculean task. However, with companies such as ourselves, this can be effortlessly rectified.
With end-to-end property management services in Dubai, landlords can now enjoy a hassle-free process that includes all the essentials of getting the property the exposure it needs; including Marketing, Photography, Interior Design services and more. As a leading example, we have established ourselves as a remarkable trailblazer in the city, with a large portfolio of furnished apartments and luxury villas to choose from.
Advantages of Short-letting Your Property in Dubai
The beauty behind short-term rentals is their flexible nature. With short-term rental contracts, irrespective of the season, landlords can use their property whenever they please. Unlike a long-term contract, which binds landlords legally from doing anything with their property.
More Rental Income
Statistically proven, short-term rentals are the winning team here. Owners have been reported to make roughly 20-40% more income from short-letting their property, compared to leasing it long-term. Although the costs of setting up the property may be overwhelming, the returns make up for more than the costs involved.
No Hidden Costs
One of the many things that can hold owners back from short-letting property is the hidden costs and damages. Often damages from a previous tenant can set you back a few weeks or even months. However, our in-house team takes care, of everything for you.
Besides, the nature of short-term rental homes also allows for easier upkeep and maintenance, therefore, shaving off other expenditures.
A-Z Property Management
It is no surprise, that managing a short-term rental may seem like a long process. There is more to set up including furnishing and utilities. Local rules and regulations require all properties to be set up and furnished before they can be rented out on a short-term basis. Though this may seem daunting to carry out on your own, property management companies are fully equipped to ensure your property is fully set up before it is marketed, at a much, faster pace.
In-House Operations & Aggressive Marketing
One of the reasons, short-term rentals don’t succeed is the absence of aggressive marketing techniques. Partnering with established companies with an in-house marketing team deflates the pressure from you and certifies a sure-fire way of getting your property noticed. We at Deluxe Holiday Homes, pride ourselves on our very own in-house team to ensure all operational procedures are met. Moreover, our marketing efforts include social media tactics, targeted campaigns, and listing management on major channels such as Booking.com and AirBnB, Propertyfinder and Dubizzle; making it a great tactic to expand your revenue horizons.