The availability of excellent infrastructure, job opportunities, tax-free salaries, economic stability, and effective law enforcement are among the many attractive factors that attract people from far and wide and exhibit the UAE as an ideal destination.
Due to the huge influx of people coming to the UAE, property owners can benefit from both short-term and long-term rentals. Since it gets quite confusing to choose the best 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 short period, preferably for less than a year. Rent payment for short-term rentals can be done either weekly or monthly.
If you are searching to rent a property for a short term in the UAE, then you find your ideal one from these listings:
- Properties for rent for short-term (monthly) in the UAE
- Properties for rent for short-term (daily) in the UAE
The short-term rents include utility bills, parking spaces, and service charges. However, short-term rents are more expensive than long-term rentals and may change frequently.
The short-term rental pros and cons are enlisted below.
Pros of Short-term Rentals
- No overhead payments
- Availability of fully-furnished apartments
- Allow tenants to move from one place to another without being bound to long-term rents
- Rent can be divided through room sharing
- Exposure to people with different cultures in room sharing
Cons of Short-term Rentals
- Higher rents
- Invasion of personal space on room sharing
Who Should Prefer Short-term Rentals?
Tourists and business executives prefer short-term rental properties due to their short stays. They wish to enjoy the comforts of a warm and homely place after their hectic day of work or sightseeing.
To cater to the needs of these tenants, fully-furnished apartments, vacation homes, and hotel apartments are available for short-term rent in the UAE.
Moreover, short-term rental property is also preferred by those individuals who can only afford to pay rent monthly, since the initial cost for long-term rentals is hefty. Also, people often look for a short-term rental property when they visit any country for the first time and need some time to get familiar around.
Long-term Rentals in the UAE – Pros and Cons
Long-term rentals in the UAE are properties that can be rented for a more extended period, usually a year. Such rental properties require an annual tenancy contract, governed by RERA law, for consumer protection.
However, with long-term rental properties, utility charges are required to be paid separately. Moreover, long-term rentals in the UAE charge an overhead amount for the security deposit, furnishing costs, and agency fees.
If you are looking to rent an apartment, then you can check out these residential apartments and flats for rent in the UAE.
Rents by long-term tenants can be paid through post-dated cheques on either a quarterly, half-yearly or yearly basis. Also, if you default on the contract, the tenant is bound to pay all outstanding dues, which limits a tenant’s ability to switch places frequently.
The long-term rental pros and cons are enlisted below.
Pros of Long-term Rentals
- Annually locked rents prevent tenants from a sudden increase in rent
- Stability in terms of financial yearly output and living arrangement
- Protection from the market and seasonal fluctuations
Cons of Long-term Rentals
- Bound to stay in one place
- Initial hefty payments to make
- Tenants mostly get an unfurnished rental property
Who Should Prefer Long-term Rentals?
Long-term rental properties are preferred by those individuals who come to the UAE to settle, considering it an ideal society with all the amenities one could ask for.
Just so you know, you can check these houses and villas for rent in the UAE in case you are looking for one.
The UAE has strong footholds in the property market across the globe due to its appealing destinations for investors, entrepreneurs, and buyers. In the short-term rental vs long-term rental debate, it is evident that the property market offers benefits to both the tenant and property owner.
In terms of ROI, property owners can gain the most short-term rental profitability by renting out property for a short term, on a weekly or monthly basis, or can earn through multiple short-term tenants. Whereas, a tenant can benefit from long-term rentals by locking in rent for a year leading to a stable financial annual output.
Nevertheless, finding a property that suits your needs perfectly is a bit of a hectic task in the UAE. To save yourself from the hassle, don’t forget to take a look at these properties up for rent in the UAE.
Stay tuned to the UAE’s leading property blog, for more helpful information on rental properties.
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