Should you sign a Dubai short term rental lease? A short-term lease typically refers to a contract that is less than six months. What are the pros and cons of Dubai short term rental leases? Take a look.
Pros for the renter
Some renters prefer shorter-term leases for the flexibility they provide, whether that be moving for work, travel or just a slicker apartment across the street. For instance, if you’re looking for work, a Dubai short term rental will allow you to look for a job that may fall outside your usual “commuting” zone. Or, if you need to move for a temporary assignment to another city, a Dubai short term rental will offer you added mobility. Plus, if you’ve just moved to a new city and are looking to take the time to zone in on the best area for you to settle down in, a Dubai short term rental would give you the chance to get a hang of the city while living in it.
2. Ready to live in spaces.
A Dubai short term rental is usually completely ready to live in and fully furnished from kitchenware and tableware to linen and bath towels.
3. You get a lot more for your money.
A Dubai short term rental typically features an equipped kitchen so you can save money on eating at restaurants during your stay: great for singles and those with families.
Pros for the owner
1. More rental income.
A Dubai short term rental should provide you more rental income than letting your house out to a long-term renter. Whilst the cash flow may not be consistent, if you look at the annual income, the short-term rental market will be more lucrative than the long term one.
2. A house-sitting opportunity.
Planning to go on holiday? Then, getting a tenant will not leave your home empty. Plus, you’ll have someone take care of your house and you’ll get to make some money as well!
A Dubai short term rental also offers more flexibility for the property owner. For instance, if owners wish to enjoy the space for personal use, they can do it as long as they block off the dates during which they would like to visit.
4. More control.
The property owner has more control over a Dubai short term rental and its maintenance, as tenants stay for just a couple of days, weeks or months.
5. Less wear.
Since a Dubai short term rental is not occupied 365 days a year, there is likely to be less wear and tear as compared to a long-term let.
Cons for the renter
For renters, a Dubai short term rental may have few drawbacks. For one, property owners tend to charge more for a short-term lease and may include costs for cleaning and furnishings in the rent. This will cost you more not just in the short term but in the long term as well, if you go on to renew the short-term lease for an extended time period. Plus, there’s always the possibility of a rent increase and changes to the terms of the lease more frequently than in a long-term contract.
2. Moving, once again.
While you could extend the length of a lease, the landlord might not agree. Hence, you may find yourself needing to move soon after your last move. Moving is stressful and exhausting and is a key drawback of opting for a Dubai short term rental.
Cons for the owner
1. Hidden costs.
If the tenant damages a piece of furniture or an appliance, it will be unattractive to the next tenant. Hidden costs for you as the owner can include everything from replacing furniture to linen and toiletries. So, in a sense, they’re more like hotels than rental properties. Also, the deposit may not always cover your costs and tenants may not always agree with your choice of décor. Hence, when renting your house out on a short-term basis, you may need to consistently make upgrades to it to make it desirable for guests.
2. Furnishing costs.
Long term renters usually have their own furniture, whilst you will have to furnish a Dubai short term rental property yourself.
3. You pay monthly utility bills.
If you rent your property out to a long-term renter, this is an expense that you wouldn’t have to worry about. However, these costs will be yours in the case of a Dubai short term rental.
4. Inconsistent cash flow.
Renting to a long-term tenant provides you with more constant cash flow as compared to leasing to short-term renters.
You may need to do some aggressive marketing on your own to attract visitors to your house.
Our advice? Do your homework. Check out as much information as you can about short stay in Dubai apartments or short stay in Dubai villa accommodations, neighbourhood, amenities and fees before signing on the dotted line.