Is it a good idea to sign a short term rental lease in Dubai? A short-term rental lease generally refers to a contract having no more than six months.
If you seriously consider going forward with this process, we have listed the top pros and cons of a short term rental lease. Have a look below.
Pros That a Renter Will Enjoy
Some renters prefer short term rental leases just for the flexibility it offers – whether it is travel, shifting for work, or simply an appealing apartment down the street. For example, if you are hunting for work opportunities, a short term rental lease in Dubai will enable you to search for a job that might fall outside your typical commute zone.
Or, if you have to shift for a temporary assignment to another city, a short term rental lease in Dubai will provide extra mobility.
Moreover, suppose you have recently shifted to another city and are taking the required time to hunt for the best area for you to settle down. In that case, a short term rental lease in Dubai will allow you to become familiar with your new city while residing in it.
Short stay rental in Dubai is typically fully prepared for living in and completely furnished, from tableware to kitchenware, bath towels, and linen.
You Get a Lot More for Your Money.
A short term rental lease in Dubai usually showcases an equipped kitchen so that you can save money on eating out during your stay. This is a great feature for families and singles alike.
Pros That the Owner Will Enjoy
A High Rental Income
A short term rental lease in Dubai will most probably offer you a high rental income instead of exposing your property to a long term renter.
Although the cash flow may not be consistent, just by looking at the yearly income, you will know that the short-term rental lease market is more lucrative than the long-term one.
A House-Sitting Chance
Are you planning to go on vacation? Getting a tenant won’t leave your home empty. Furthermore, you will have someone behind to take care of your property. No need to mention that you will be making money simultaneously too!
A short term rental lease in Dubai also provides extra flexibility for the property owner. For example, if property owners want to enjoy their space for personal reasons, they can do so as long as they block off the dates when they would like to visit.
More Control Over Everything
A property owner has better control over a short term rental lease in Dubai and the maintenance. Being a property owner, it’s up to you to decide whether the tenants will stay for some days, a few weeks, or months.
Less Wear and Tear
As a short-term rental lease in Dubai is not occupied for the whole year, it is evident that there will be minimal wear and tear instead of a long-term rental.
Cons That a Renter Will Face
For renters, a short term rental lease in Dubai comes with some consequences. For starters, property owners tend to charge higher for a short term rental lease and might add costs of furnishing and cleaning to the rent.
This will ultimately cost the renter more, both in short term rental and long term rental. In addition, it will cost more even if you renew the short term rental lease for a prolonged period.
Moreover, there is always a higher possibility of increasing rent and changes in terms of the lease than in a long-term contract.
Moving Again and Again
It is not always easy to have an extension of the lease contract duration as the landlord might disagree. Therefore, you will have to move again, which is tiring and stressful. This is a significant drawback of staying in a short term rental lease in Dubai.
Cons That a Property Owner Will Face
If a tenant harms an appliance or a piece of furniture, it will look disappointing to the future tenant. The hidden costs for the property owner can be everything from changing toiletries, and linen to replacing the furniture.
Therefore, in a way, they are more like hotels and not rental properties. Plus, the deposit might not always cover the costs, and the tenants may not always agree with your preference for decoration.
So, when renting your property out on a short term rental lease, you will have to continuously make upgrades to make it tempting for guests.
Long term renters generally come with their furniture, whereas you will need to furnish a short term rental lease in Dubai yourself.
You, Will, Have to Pay Monthly Utility Bills.
While renting out your property to a long term renter this is an expensive cost to consider. But the monthly utility bills will be paid by you.
An Irregular Cash Flow
Renting out to a long term tenant offers you a more regular cash flow than leasing to short term renters.
You have to go for mass marketing individually to gain visitors to your property. So, it is advised to do your homework. Check out as much info as you can about a short stay in a Dubai villa or a short stay in Dubai apartments.
So, this was our guide on the strong and weak points of a short term rental lease. Whether you are a property owner or tenant, you must have learned important and insightful information from the list.
Before renting out your property or staying in a short-term rental property, make sure to weigh the pros and cons seriously before signing the documents.