Short-Term Rentals vs Long-Term Rentals in Dubai
Often investors and property owners in Dubai get intrigued by long-term rentals, but they miss out on the fact that long-term rentals demand certain expenses as well. Many investors misinterpret the property market wrongly. It might seem that long-term property leases yield higher returns in comparison to short-term rentals, whereas the case is completely opposite. To help you understand this better, here is a complete comparison between the two.
- Stability – Well, leasing a property in Dubai for a long term is definitely a stable option, but getting the desired tenants to pay the market price might take a lot of time. And it makes no sense to leave the property empty during the hunt. Whereas, finding short-term guests do not take much time.
- Returns – One of the most important aspects for any landlord or property owner is the returns they receive from their property. And no doubt short-term rental returns are quite high, as compared to long-term. Guests will always pay a higher fee than tenants, so even after accounting for extras that owners need to provide, short-term rentals returns will be higher.
- Process – The Short Term Rental Process Dubai is not too complicated and doesn’t involve contracts and other formalities like the long term.
- Flexibility – Talking about flexibility, then in that case, the short term is highly flexible. Investors can use their property whenever they wish to and rent it out to guests. Whereas, in long-term leasing, the owner is contract-bound and cannot use the property freely.
- Cash Flow – The nature of short-term rentals and seasonality might vary from month to month. Thus, in the short term, the cash flow is not fixed. Whereas, when it comes to long-term rentals, the cash flow is fixed, but the gaps between contracts would leave the owner without any income.
If you have the right neighborhood, the right building, a wow factor, amazing amenities, the right size, and the right operator, then your short-term rentals earnings can yield you up to 30-40% higher returns than the long-term rentals. Thus, when you pick a property, make sure to keep all the factors in mind.
All the factors indicate that a short-term rental is more beneficial than a long-term one. You can check out different investment opportunities and properties listed on https://www.sweet-home-dubai.com/ and can also talk to our professionals at +972 03-644-44-46, and they will help you in picking the right property at the right location for you.