The accessibility of outstanding infrastructure, framework, multiple job opportunities, tax-free salaries, economic stability, and effective law enforcement are among the many top alluring factors that attract people from far and wide and display the UAE as an ideal and dream destination.
Due to the huge amount of people visiting the UAE, property owners can benefit from both short-term and long-term rentals. But how?
Since it gets quite puzzling to choose the finest rental option, we have detailed the pros and cons of short-term rentals vs long-term rentals in this guide.
SHORT-TERM RENTALS IN THE UAE – PROS AND CONS
Short-term rentals in the UAE are those properties that are leased for a short period, preferably for less than a year. The rent payment is done either weekly or monthly. It provides flexibility for tenants to move from one place to another in a flexible manner.
The short-term rental pros and cons are listed below.
PROS OF SHORT-TERM RENTALS
- No overhead payments
- Fully-furnished apartments
- Allows tenants to move from one place to another without being bound to long-term rents
CONS OF SHORT-TERM RENTALS
- Higher rents
WHO SHOULD PREFER SHORT-TERM RENTALS?
Tourists and businessmen prefer short-term rental properties due to their limited and short stays. They wish to enjoy the comforts of a warm and homely place after their hectic day of work or sightseeing.
Fully furnished flats, holiday houses, and hotel apartments are available for short-term rental in the UAE to meet the needs of these tenants.
Furthermore, because long-term rentals have a high initial cost, short-term rental properties are favored by people who can only afford to pay rent on a monthly basis. Additionally, when a person travels to a new nation for the first time and needs some time to get acclimated, they frequently search for a short-term rental property.
LONG-TERM RENTALS IN THE UAE – PROS AND CONS
Choosing for long-term rentals, you get the freedom of furnishing the rented apartment as per your needs
Long-term rentals in the UAE are properties that can be rented for a lengthier and more extended period, usually a year. Such rental properties need a yearly tenancy contract, governed by RERA law, for consumer protection.
However, with long-term rental properties, utility charges are required to be paid separately. Furthermore, long-term rentals in the UAE charge an overhead sum for the security deposit, furnishing costs, and agency fees.
The long-term rental pros and cons are mentioned below.
PROS OF LONG-TERM RENTALS
- Annually locked rents prevent tenants from a sudden increase in rent
- Stability in terms of financial twelve-monthly output and living arrangement
- Protection from the market and seasonal fluctuations
CONS OF LONG-TERM RENTALS
- Restricted to stay in one place
- Initial hefty payments to make
- Tenants mostly get an unfurnished rental property
WHO SHOULD PREFER LONG-TERM RENTALS?
If you are planning to settle in UAE, long-term rental properties are apt for you, considering it an ideal society with all the facilities one could ask for.
Due to its desirable locations for buyers, entrepreneurs, and investors, the UAE enjoys a substantial market share in the global real estate industry. It is obvious that the property market benefits both the tenant and the property owner in the argument between short-term and long-term rentals.
In terms of ROI, renting out a home for a brief period, on a weekly or monthly basis, or by having many short-term tenants, will yield the highest short-term rental profitability for property owners. While a renter might gain from long-term leases by securing rent for a year, which results in a constant yearly cash output.
Nevertheless, searching for a property that suits your needs perfectly is a bit of a tedious task in the UAE. To save yourself from the hassle and tribulations, don’t forget to connect with Airas Property Management, UAE
Stay tuned to the UAE’s leading property blog, for more helpful information on rental properties and listings.