In the past decade, Dubai has seen a significant rise in short-term rental properties and there are a few reasons contributing to this hike in demand. From being the top vacation destination to a booming real estate market Dubai has been experiencing a stronger footfall. This has majorly contributed to people choosing short-term rental properties for vacation and business, and even the residents are dwelling in the comfort of staycation. And real estate investors now are opting to rent their own property in Dubai as rental homes.
When compared to long-term rental properties, short-term rental properties have an upper hand as according to the RERA (Real Estate Regulatory Authority of Dubai) rules landlords with regular leases cannot increase rental rates for existing tenants by more than 20% limiting their ability to generate higher profit.
4 Reasons Why You Should Consider Listing Your Property As A Holiday Rental Home In Dubai
The idea of fully furnished homes where you can experience the city and move to a different location in a matter of days attract a lot of people toward short-term rental properties. So here are four reasons why you should consider listing your property as a holiday rental home in Dubai.
1. Comparatively Higher Return on Investment
In May 2023, the National News reported that owning a short-term rental property in your investment portfolio provides advantages that cannot be obtained through a long-term lease. The most apparent benefit is the greater return on investment, which typically ranges from 20-30% higher than a long-term rental property. Long-term rental properties usually get a rental yield of 5-8% depending on the location.
2. Surge in Price
Dubai experiences a seasonal surge in price during peak tourist seasons, making it an ideal time to invest in holiday homes. The demand for short-term rentals increases significantly during these periods, leading to higher rental rates and a greater return on investment for property owners.
This seasonal surge in prices is attributed to the influx of tourists who visit Dubai for various reasons such as shopping festivals, sporting events, and cultural festivals. During these peak seasons, holiday homes in Dubai experience high occupancy rates, and property owners can command premium rental rates due to the high demand.
3. Low Vacancy Rates
Dubai’s tourism industry continues to grow, which means that vacation rental homes have low vacancy rates. Unlike long-term rentals, which can remain vacant for extended periods, vacation rental homes attract a steady stream of tourists throughout the year. This ensures that your property remains occupied for a significant portion of the year generating rental income.
4. Maintenance and Upkeep
Vacation rental homes require regular maintenance and upkeep, which can be managed by a property management company. They can ensure that the property is cleaned and maintained between guest stays provide emergency repairs, and handle guest inquiries and complaints. This means that you can relax and enjoy the benefits of rental income without the hassle of managing the property yourself.
In conclusion, renting your own property as a holiday home in Dubai can be a lucrative investment with numerous benefits. With the UAE government’s new regulations in place, it has become easier and more secure for homeowners to enter the holiday homes industry. The higher rental returns, flexibility to use the property at your convenience, lower vacancy rates, easier management, and potential for appreciation make renting out your property as a vacation rental a smart choice. So, if you own a property in Dubai, consider renting it out as a holiday home and experience the financial benefits and convenience that come with it. With the help of a reliable property management company, you can easily manage your property and ensure a hassle-free experience for both you and your guests.
Contact Silver Oak Properties for any property inquiry today!