The UAE serves as one of the most sought-after destinations, thanks to state-of-the-art infrastructure, tax-free salaries and economic stability. With a growing population and booming tourism, the rental market is thriving, offering options for both short-term and long-term stays. Understanding the differences between short-term and long-term rentals in the UAE can help aspiring tenants make a more informed decision.
Understanding Short-Term Vs Long-Term Rental in the UAE
Here’s the difference between short-term and long-term rentals, helping you understand which option aligns better with your stay duration, budget and lifestyle needs in the UAE.
Short-Term Rentals in the UAE
Short-term rentals are accommodation arrangements offered for periods of less than 12 months, typically ranging from a few days to several months. Types of short-term rentals include holiday homes, serviced apartments and hotel apartments. Here are some of the important factors you must keep in mind when choosing short-term rentals in Dubai:
- Duration: Daily, weekly or monthly rental in the UAE, making them suitable for tourists and temporary stays.
- Furnishing: Fully furnished with appliances, Wi-Fi and essential amenities.
- Regulation: Licensed through the Dubai Department of Economy & Tourism (DET) for holiday homes; Ejari registration is not required.
- Included costs: Utilities such as DEWA connection, service charges and sometimes parking are often included. Daily/weekly rates plus a 10% municipality fee, 5% VAT and Tourism Dirham fee in Dubai (AED 7–20 per night), applicable for the first 30 consecutive nights only.
- Ideal for: Short-term rentals in Dubai are ideal for tourists, business executives and temporary residents who need a place to stay for a limited period.
If you’re exploring short-term options, there are plenty of listings available across the UAE. You can find properties for short-term rent on a daily and monthly basis in prime locations, allowing you to move in immediately and enjoy all-inclusive amenities without the long-term commitment.
Benefits of Short-term Rentals
Short-term rentals are designed for flexibility and convenience, making them a practical choice for temporary stays in Dubai. Some of the key benefits include:
- Maximum flexibility: Ideal for tourists, business travellers and professionals on short-term contracts.
- All-Inclusive living: Fully furnished homes with utilities, Wi-Fi, air conditioning and sometimes housekeeping.
- Prime locations: Often located near business districts, tourist attractions and lifestyle hubs.
Key Considerations for Short-Term Rentals
While short-term rentals offer convenience, certain factors should be considered before choosing this option:
- Higher cost per month: Short-term rentals can cost 30–40% more per month than equivalent long-term rentals.
- Seasonal price fluctuations: Rates often spike during peak tourist seasons, holidays or events like New Year holidays in Dubai.
- Strict licensing requirements for landlords: Only properties licensed as ‘holiday homes’ by DET can be legally rented short-term in Dubai.
Long-Term Rentals in the UAE
Long-term rentals are standard residential arrangements with a minimum duration of 12 months. When choosing a long-term rental in Dubai, keep the following factors in mind:
- Duration: Minimum 12 months.
- Furnishing: Commonly unfurnished or semi-furnished, though fully furnished long-term apartments are also available. This allows tenants to choose between personalising the space or moving into a ready setup.
- Regulation: Governed by the Real Estate Regulatory Agency (RERA) and registered through Ejari, which legally records tenancy contracts and protects tenant rights.
- Ideal for: Long-term rentals are best suited for those planning to stay in the UAE for a year or more.
For those considering a long-term stay, there’s a wide range of apartments for rent in the UAE that offer access to communities with schools, shops and several amenities.
Benefits of Long-term Rentals
Below, we highlight the key benefits of long-term rentals in the UAE:
- Cost-effective for extended stays: Monthly rent is generally lower compared to short-term options. For example, a one-bedroom apartment in Dubai Marina may cost around AED 8,000 per month on a long-term rental, compared to AED 12,000 for a similar short-term rental.
- Legal protection and tenancy rights: Ejari-registered contracts under RERA provide legal clarity and protection in matters such as rent increases, maintenance and eviction.
- Predictable costs: Rent usually remains stable during the rental term and tenants can plan budgets effectively. Utility setup may be additional, but there are no seasonal spikes in average rent.
Key Considerations for Long-term Rentals
While long-term rentals offer stability, there are a few practical considerations tenants should be aware of:
- Less flexibility: Tenants are usually locked into a 12-month contract, with penalties for early termination.
- Higher upfront costs: Security deposits, agency fees (typically 5% of annual rent), Ejari registration and utility deposits can total 2–3 months’ rent before move-in.
- Responsibility for utilities and maintenance: Tenants must arrange utilities such as electricity, water and internet, along with minor maintenance.
FAQs
Are short-term rentals legal in Dubai and the UAE?
Yes, short-term rentals are legal if the property is licensed by DET in Dubai or the relevant authority in other emirates. Unlicensed rentals are not permitted.
Which property types work best for short-term rentals?
Fully furnished apartments, serviced apartments, hotel apartments and holiday homes in prime locations near business hubs or tourist attractions tend to perform best for short-term rental income.
How do management costs differ between short-term and long-term rentals?
Short-term rentals require higher management costs due to frequent tenant turnover, cleaning and booking management. Long-term rentals have lower ongoing costs, mainly maintenance and utilities setup.
Understanding the short-term vs long-term property rental is essential for tenants, landlords and investors in the UAE. Consider your stay duration, budget, lifestyle and legal needs before signing a contract.
If you’re considering investing in this segment, the 2025 Dubai short-term rental market report offers clear insights into performance and growth trends.
Stay tuned to the UAE’s leading property blog for more helpful information on rental properties.
