Dubai Self-Catering Accommodation. Part 2 Tips For Landlords
Below is a MRR and PLR article in category Finance -> subcategory Real Estate.
Dubai Self-Catering Accommodation: Part 2 - Tips for Landlords
Following last week’s article on tips for tenants, this installment offers valuable guidelines for Dubai landlords entering the short-term rental market.
Renting out properties as holiday homes is a well-established practice in places like the Italian, Spanish, or French Riviera. With Dubai striving to become a top international holiday destination, there's potential for landlords to benefit from this model.
Why Consider Short-Term Rentals?
Renting out a property on a short-term basis allows landlords to use it personally, earn a high return on investment, and enjoy property value appreciation.
Execution is Key
Success in short-term rentals depends heavily on local market execution. While the concept isn’t new, the implementation is critical. Having the right property is just the beginning. Effective marketing makes up about 70% of the business, while daily operations account for 20%.
Setting Up Your Property
Transforming an apartment for short-term rental requires experience, design skills, and attention to detail. Focus on guest needs rather than personal taste. A common oversight is using inadequate curtains that let in unwanted light. Quality matters?"from efficient curtains to ample towels and quality bed linens, ensure your guests' comfort.
Managing Operations
Running a short-term rental involves managing housekeeping, guest complaints, and more. For those with multiple properties, consider hiring a professional agent. They can handle marketing and management for around 20% of the rental income, easing your burden.
Financial Insights
For example, a 5-star, marina-view, one-bedroom apartment in Dubai Marina can earn about AED 95,000 per year when unfurnished. If rented furnished on a short-term basis, it may bring in up to AED 235,000 annually. After agency fees and furnishing costs, the owner could net approximately AED 142,000 (assuming a 79% occupancy rate).
Weighing the Risks
Remember, where there’s potential for high returns, there are also risks, particularly with occupancy rates, which aren’t guaranteed. To mitigate risks, consider engaging an agent for a six-month trial to evaluate their effectiveness and reliability.
Exploring Options
If you prefer a more hands-on approach, opt for a non-exclusive marketing agreement. This allows you to promote your property through various agents, though exclusivity can sometimes result in better service.
In conclusion, successfully renting out your property in Dubai requires strategic planning, effective marketing, and possibly partnering with experienced professionals. With the right approach, the short-term rental business can be both lucrative and rewarding.
You can find the original non-AI version of this article here: Dubai Self-Catering Accommodation. Part 2 Tips For Landlords.
You can browse and read all the articles for free. If you want to use them and get PLR and MRR rights, you need to buy the pack. Learn more about this pack of over 100 000 MRR and PLR articles.