For Property Investors: The Short-Term Leases Are Profitable 0ption
Short-Term Rental Property
Offering the higher return on your investment about 20 to 30% more than a long-term rental.
Are you investing in property?
Dynamic market such as the UAE offers inspiring opportunities for investors looking for something a little different.
People will simply pay more to stay at a fully furnished property even taking into account the costs, a short-term let will earn you more money.
Short-Term Rentals
- Offer more space than a hotel and an array of family friendly amenities, are the perfect choice for these visitors.
- Comfortable and cost-effective home away from home as their base while exploring the region’s unique experiences.
- Furnished apartment with space to work and relax makes for a far more enjoyable stay than a small hotel room.
Flexibility
One of the biggest advantages of short-term lets — you feel in control of your investment, especially in uncertain times.
Short-term letting
Takes away any obligation to hold on to a property if you’re ready to sell. There is no long-term contract to honour, so you’re free to do as you wish with your investment.
If you live abroad but travel to the UAE for holidays, owning a short-term leased property means you always have somewhere to stay, and it’s as simple as blocking out dates for your own use.
A holiday home will pay for itself as tourism rebounds post-pandemic and visitors venture out to explore the world again.
How close should you live to your investment property?
Living close to your investment property offers other possibilities if meeting new people from different places is something that interests you. Instead of simply being numbers on a page, your investment becomes a little more human. Adding a personal touch to a stay brings a delightful element of connection to what is essentially a financial transaction.
Comparing Short Term & Long Term Rentals
There are obviously different expenses and challenges associated with short-term rentals compared with longer-term tenancies.
1. Property needs to be furnished to create a standout guest experience.
2. Should be well equipped with high-end amenities to wow your guests.
3. Tenants need to be screened and your property must be impeccably cleaned and maintained between visitors.
4. Seasonal variations can mean there are periods when your income fluctuates.
Costs
There are monthly costs associated with a short-term let, such as bills and maintenance costs. These have to be considered when discussing revenue. Of course, there are property management companies that can assist with everything — those fees need to be considered as well.
So, Investing in a short-term lease property makes a lot of sense today as the market continues to grow and develop. It’s profitable and flexible — two vital elements for any investor.
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