The rental properties available in Dubai have transformed significantly due to urban growth and development leading to a range of rental options.
Among these options, two are the most common:
Short-term rentals offer flexibility for tourists, business travelers and individuals looking for temporary accommodation. Whereas long-term rentals provide stability for those looking to establish themselves in one location for a longer period.
Each type of rental comes with its set of pros and cons that differentiate them from one another. So, it is important to understand the differences between these two options.
With that in mind, in this detailed blog, we will discuss and compare short-term rentals with long-term rental options. Read on to know the factors that would help you decide the right option for you.
Let’s get started.
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Short-term rentals include renting properties for a short time period—less than a year. The duration of short-term rentals can range from a few days to months. Three types of rental categories come under this:
Read also: Best Places to Invest in Rental Property in Dubai, UAE
Short-term rental options offer a range of advantages to the tenants such as:
Well, every rose has its thorn!
Short-term rentals offer flexibility to cater to every need. They may come at a higher cost compared to long-term rentals.
Tenants may need to fulfil requirements or pay fees that are usually not applicable in annual rentals.
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Long-term rentals refer to properties rented out for more than a year or so. These rental options include:
Tenants in long term rentals benefit from stability and security. In the long run, these rentals are considered more cost-effective than short-term alternatives due to lower expenses.
Read also: Cost of Living in Dubai Vs. USA
When it comes to the pros of long-term rentals, the following are highlighted the most:
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Short-term and long-term rentals differ significantly in their objectives and needs. Here are the key differences between these two categories:
| Factors | Short-Term Rentals | Long-Term Rentals |
|---|---|---|
| Length of Stay | Less than a year ranging from days to months. | A year or more, possibly lasting for years. |
| Types of Tenants | Tourists, business travelers or temporary residents. It is perfect for individuals looking for short-term housing due to travel or work. | Families, permanent residents. It is ideal for people and families in search of reliable and standard living. |
| Commitment | No extended commitment is needed from tenants in short-term rentals. | Long-term rentals demand a commitment from tenants for a specified time period. |
| Expenses | Daily or weekly rates might be higher compared to long-term rentals. | Monthly expenses are generally lower than those of short-term rentals. |
| Flexibility | Renters can switch locations frequently based on their preferences. | Long-term leases require commitment for a period limiting flexibility in changing residences. |
| Furniture & Amenities | Short-term rentals are fully furnished and have all the important facilities. | Tenants may need to furnish the apartment/villa themselves in long-term rentals. |
| Cancellation | Easy and simple cancelation process. | Cancellation processes might be complex and have potential penalties. |
Read also: Why Dubai Rental Market Is Attractive
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1- Compare costs for short and long-term rentals based on your budget.
2- Choose based on your work location.
3- For short work-related visits, go for short-term leases. And if you want to settle down, long-term rentals are the way to go!
4- Consider whether the property comes furnished and has all the things you need.
5- Research rental prices in the desired location for both short and long terms.
6- Make sure to go over the lease terms, which include fees, maintenance responsibilities and process for cancellation.
Related: Tips for Renting an Apartment in the UAE
Renting out a property in Dubai for a short period of time can bring in more income for the landlord as compared to long-term rentals. Although the income may not be steady when considering earnings, short-term rentals are more profitable than long-term ones.
Yes. Renting an apartment on a monthly basis in Dubai provides flexibility with contract lengths. Whether you need a lease for one month or 3 months, you can discuss the options with the real estate agent.
Investing in an Airbnb property in Dubai typically offers more Return on Investment (ROI) than real estate. Short-term rentals can provide ROI ranging from 7% to 12% surpassing the expected 4% to 6% from long-term leases.
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According to the analysis done by our expert real estate agents, the following areas have high rental yields. Tenants looking for reasonably priced housing prefer these areas:
Al Nahda and Deira are within the city. While DAMAC Hills 2 and Mirdif are well-liked suburban areas. For luxury apartments, people prefer areas such as:
Yes, rental income is better in Dubai. With its good yields and favorable tax environment, real estate investment is thriving in Dubai, making it a popular choice among global investors looking to become landlords and explore property opportunities available there.
In Dubai, the landlord can only increase the long-term rent after a full year has passed since the contract started. The percentage of increase is calculated by comparing the rent with rents in the area using a table set by the Dubai Land Department. The landlord must notify the tenant in writing about any increase.
In Dubai, rent payment methods vary depending on what’s agreed between landlords and tenants. Here are some common methods often used:
Read also: Pros and Cons of Living in A Rental Property
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The choice between short-term and long-term rentals highly depends on certain factors, like personal preferences and financial considerations.
Short-term rentals are suitable for those needing accommodation for days or months, such as tourists or business travelers.
On the other hand, long-term rentals are perfect for individuals looking for residential stability like families planning to stay for years.
Short-term rentals generally come at a high cost compared to long-term leases. Long-term leasing is seen as cost-effective but less flexible due to penalty clauses in the case of early termination.
When it comes to renting, short-term leases are great for those who prefer flexibility or are unsure about their stay while long-term leases suit those planning to settle down in Dubai.
Feel free to reach out to us at +971 4 271 5252 for assistance and take advantage of our 0% commission on rent offer.
