There is nothing new about short term rentals as they have been an accommodation option for over a decade. Though they were originally introduced as an alternative to expensive and long term property rentals, they have slowly moved into the holiday market. As well as offering an option to those who don’t want to rent on a long term basis, they offer tourists and holidaymakers and cheaper alternative to hotel rooms. This has meant a big change for the travel and tourism industry, as well as the property industry as a whole.
The Increased Popularity of Short Term Rentals in Dubai
With more and more people looking for short tern rentals in Dubai, landlords have jumped at the chance to earn more from their properties. Short term rentals offer a much higher yield than long term rentals. This is because the turnover of tenants is higher and the rental price takes into account any periods of time when the property will not be occupied. Short term rentals typically boast returns that are 10% to 15% higher.
A lot of people opt for short term rental because of the flexibility. There are more options and it’s a lot less hassle, simply because they’re only staying for a short period of time. Plus, there are no additional charges for furniture and utilities.
Though there’s a huge demand for short term rentals from tourists and holidaymakers, there’s also a huge demand among those who have just moved to Dubai. Anyone visiting who has just arrived in Dubai and those staying for an undecided amount time are unlikely to commit to a long term rental contract. This is good news for landlords, as short term contracts allow a lot more flexibility in regards to how the property is utilised. It also makes selling the property a lot easier, as there’s no need to worry about long term tenants.