The Pros and Cons of Short Term Rental

If you have a property lying idle for quite some time, and you are not able to put it up for long term rental, you have the option to rent it out on short term basis. Short term rental is a well-known type of property investment, in which you rent your property for shorter periods ranging from few days to several months.

But before putting up your property for rent in Dubai, you might want to first check out the pros and cons of short-term rental.

Here are some insights:

Pros of short-term rental

Prime benefit of short term rental is that it provides flexibility to the owner in terms of choosing the time & duration for rent. It is also very lucrative as the owner gets to decide the prices according to time of the year, demand and property type.

Dubai is a busy metropolis. It attracts a lot of visitors and tourists all year round. If you are planning to offer your property for short-term rental, you can target business professionals, families, and individual tourists who visit and stay in Dubai for such shorter periods.

According to one estimate, more than 15 million people visited Dubai in 2017. The local government also has the Tourism Vision 2020 program that aims to encourage 20 million visitors a year by 2020.

With these numbers at hand, the great demand for short-term rental houses, villas, and apartments in Dubai will surely continue or even rise in the following years.

Cons of short-term rental

There are a few disadvantages that you should also consider when renting your property on a short-term basis. For one, there can be a lack of stability in this type of rental arrangement.

While it is true that there are a lot of visitors and tourists coming to Dubai, but the competition is also high. Potential tenants have different options. Thus, it is important to add more reasons why people should choose to stay in your place instead. Lowering your rental price or improving the look & feel of your property would attract more potential customers.

Generally, renting a house or flat for rent in Dubai for shorter periods is more expensive compared to renting it yearly. This could make people indecisive about renting properties on short term basis.

Finally, since you are offering your property as a temporary dwelling, utility bills and maintenance cost fall under your responsibilities. Also, these types of rentals come fully furnished. So, you have to consider the cost of buying furniture, white goods and all furnishings for your property. This adds a considerable but necessary cost to your investment, to ensure successful rentals and regular income.

Need to speak to a professional?

There is more to know about the pros and cons of short-term rental. Whether you are offering a home or furnished apartment for rent in Dubai, you may want to discuss your options with a professional. This is where Rocky Real Estate can help you out. They have been in the real estate industry for many decades now. They have the right expertise to help you make the right decision when it comes to real estate investments. Give them a call now to learn more!