Short Term Lets
How would you like to earn 20-30% extra on average per annum from your rental property? Short-term lets or operating a serviced accommodation model is a great way to achieve this.
Put simply, the property will be advertised on websites such as AirBnb, Booking.com, Expedia etc and then guests will come and stay at the property for a short period of time, effectively as an alternative to a hotel, for them they get to feel like they’re living in a home with a full kitchen and more privacy in comparison to a busy hotel.
The property price will be on a daily rate at a premium, and therefore over the year of bookings your total income will far outweigh what you would receive from a traditional 12-month tenancy agreement.
Who may stay at the property? Well, Dubai is perfect for short term lets due to the number of tourists visiting Dubai, we have some of the world’s highest hotel occupancy rates and with plenty of leisure and entertainment attractions, Dubai is a world-class travel destination, of course, all these people need somewhere to stay.
Not only this though Dubai is also become an entrepreneurial hub due to the tax regime and recently introduced rules are remote working visa and business set ups, meaning the business and corporate crowd, and further employers and being enticed to the Middle East. Therefore, those on business trips and here for professional reasons will also require quality accommodation for their stay, and with the rise of remote working and working from home, having a spacious apartment with dedicated desk space or office will prove invaluable for such demographics.
Will there be lots of costs? There will be running costs such as utility bills to take into account, however, given the amount of income from the visitors coming in each month, your profits will still far outweigh any costs.
In terms of rental management, it’s the same as if you were to rent the property to a long-term tenant, you appoint a management company to look after it (in Dubai they must be licenced specifically for this type of management), and they will take care of everything including advertising, check-ins, check-outs, cleaning, bill management and everything in between. They will take a share of the profits, typically around 15-20 % of the operational income but that means it will be a fully hands-off, stress-free operation with your income maximised as the management company will be incentivised to generate as much income as possible.
So, with all the above considered, we highly recommend investors consider marketing their property on the short-term let market. We can help with the entire process from start to finish, so reach out to us using one of the below forms of contact or email firstname.lastname@example.org.