An investor's guide to short-term and annual property rentals.

An investor's guide to short-term and annual property rentals.

Thursday 27 July 2023Wed 16 Feb
An investor's guide to short-term and annual property rentals.

Which should I consider when renting out my property in Dubai?

When investing in Dubai’s property market, many people consider property rental a safe source of passive income, flexibility and capital appreciation.

This article will break down the two main rental options available to investors/landlords in Dubai, comparing the benefits of short-term and annual property rentals.

Short-term rentals (STR): What are they?

Short-term rentals and ‘Holiday homes’ are privately owned properties rented out to guests on a short-term basis, typically for a few days, weeks, and sometimes months.

Why choose short-term rentals (STR)?

If you’re a landlord, short-term rentals offer a quick and easy way to generate income from a property with little risk or long-term commitment.

What makes short-term rentals appealing to investors?

Flexibility: With STR’s you’re not tied to an annual contract. You have the flexibility of taking back your property at any time. Offering secure rental income on your own terms and rapid vacancy when required.

Higher return on investment (ROI): STRs can offer up to 30% more rental return vs an annual rental contract.

High occupancy: In a booming tourist city like Dubai, STRs see year-round demand, with far fewer seasonal dips than comparable cities.

Peace of mind: It is quick and easy to fully delegate the management of your property (and guest bookings) to companies such as Allsopp & Allsopp. STRs can generate substantial returns without a burden on owners being required. STRs are an ideal option for owners with multiple properties (who do not have the time to manage frequent, short-term bookings and handovers) and overseas owners where time zones can make property management inconvenient.

P.S. - check out some of our holiday homes for those summer getaways!

Benefits of opting for short-term rentals with Allsopp & Allsopp:

At Allsopp & Allsopp, we offer investors and landlords a full range of property management services taking care of every aspect of property booking and management.

Property listing and marketing: creating custom marketing plans that give your home the best possible chance of being seen and booked by potential guests (including professional video and photography assets)

Guest booking and reservations: our team will manage every aspect of the guest booking process including setting seasonal rates, accepting payments, and communicating with guests on all aspects ahead of the booking start.

Guest services: from welcome baskets, airport transfers, and concierge services. Our team can help you make the best possible impression on your guests

Property maintenance and repairs: You never have to worry about the condition of your home. Our team can manage all the maintenance and repairs, so you don't have to. Providing peace of mind knowing that your home is being taken care of.

If you want to learn more about Allsopp & Allsopp short-term rental and property management services, get in touch with our experts!

Annual rental contracts: What are they?

Annual rental contracts are privately owned properties rented out to tenants on a long-term, fixed basis for a minimum period of one year.

Why choose annual rentals?

If you’re a landlord looking for a low risk, consistent return on your investment, annual property rentals offer a safe and trusted entry to the Dubai property rental market.

What makes annual rentals appealing to landlords?

Fixed income with consistent returns: With annual rentals, you have a contract drawn up with a fixed income being generated. What’s better is you’re likely to see a consistent return on your investment too as with no peaks/dips across the year, prices don’t get affected seasonally.

Sit back, relax: As annual rentals are based on annual fixed contracts, they’re easy to operate, as you don't need to find new tenants frequently and have the advantage of sitting back and relaxing while generating a consistent income.

Long-term occupancy: As annual contracts are set in stone, you have fewer tenants to manage while also having a high chance of a contract extension. This can bring in a higher turnover rate and consistent stream of cash flow.

Strong cash flow: If you’re looking for upfront payments from your tenant, annual rentals span over 1,2 or 4 cheques handed upon signing the contract, maintaining a strong flow of income.

Why choose Allsopp & Allsopp to manage your annual rental property?

Proven Dubai rental experience: Our talented agents are community experts with 15 years of experience in the Dubai rental market, helping investors/landlords to get the best rental returns from qualified rental tenants.

Professional marketing support: Our in-house marketing team creates professional video and photography assets that showcase your property in the best possible light, ensuring maxim exposure across social/digital channels. Targeted marketing campaigns will place your property in front of more qualified tenants looking for similar properties than anyone else.

We’ll take care of it all: Our heroes in our property management team will ensure no time is wasted in helping your tenants move-in, from Ejari to DEWA - we’ll assist you with it all.

Got doubts? Take a look at our move-in instructions!

Want to know more about how we can help you find the right long-term tenants to rent your property in Dubai?

Check out our guide to letting with Allsopp & Allsopp.

Are you interested to know more?

Did you know that property prices across many communities in Dubai are currently at their highest?

If you’d like some assistance on your next investment or a property valuation, contact our team!

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