How to Manage a Short-Term or Long-Term Rental Property
In June 2022, UAE’s government started to discuss the “rent-free” support project to help stabilize the rental market. It can help both tenants and landlords gain consensus while negotiating about rental price. Surely, such a project is a good idea for commercial property rental, but what about residual property? The residual rental market was shaken during the last year.
According to the CORE research, the apartment rental market suffered from the profit loss during 2022. Compared to 2019, Dubai’s rental market lost 8%-22% of profit based on the district. If you compare it with 2014’s data, when prices for rent were at their peak, you will find a 48% gap. This means that in 2022, the apartment rent market earned around 48% less than in 2014.
Such a loss of profit surely affects the whole market. So, if you want to get property for rent in Dubai, it is your showtime. Today you will learn about renting for short and long periods of time, advantages and disadvantages of each type, platforms that can help you rent property, and documents you need to pay attention to.
Rental Property Pros and Cons
As you know from school economics classes, there are two most common types of rental: short-term and long-term. Their main difference is the amount of time you rent a property.
The term “short-term” is usually used when you rent something for a short period of time – from one night to one month. Talking about property rental, it is called “vacation rental”. Booking a room in a hotel for a night or an apartment for a week. Both of these cases represent this term and its inner core.
The long-term rental is the opposite kind of rental. It is a rental from one month and longer. It is a usual kind of property rental for young people who can’t afford to buy property but want to start independent life. Such people pay a stable amount of money to the property owner every month, depending on their contract.
There can be a long talk about which kind of rental is better, cheaper, or more comfortable. To make it short, we combined all useful information on pros and cons of each type of rental in the table below.
|Short-term rental||Flexibility||The prices are unstable|
|Broad range of rental prices||Not always available, especially during the “hot” seasons|
|Broad range of property to rent||You may need to prepare extra documents beforehand if country’s legislation requires it|
|Everything is managed by someone else||Requires early booking|
|Long-term rental||Stable prices||Usually is unfurnished, so you need to invest in furniture|
|A chance to get an independent life experience||Big deposit to pay at the beginning|
|You get control the property and manage it as you wish||Less flexibility|
|The price isn’t connected to the season||You must take care of utilities, etc.|
Platforms You Could Use to Choose Property for Rent
Thanks to Internet network development, there is no need to ask lots of people about what you want to know. All you have to do is Google it. Talking about property rental, there are special platforms and websites that operate as a “middle-man” between you and your potential landlord. Here are some premium real estate platforms and organizations that may help you find what you want:
- Property Finder. Operating since 2015, this platform lets you find property you require not only in UAE, but in countries like Egypt, Saudi Arabia, Qatar, and Bahrain;
- Bayut. This platform is popular not only as a real estate website, but as a market expert. Their experts study the real estate market and provide regular report on the market’s state, number of properties available, etc.;
- Metropolitan.realestate. This company is a part of Metropolitan Group, one of the biggest UAEs real estate agencies. Here you can find not only a house to rent, but also help to solve legal and banking problems if such arise. Here you can find property available not only in the UAE, but in Austria, Cyprus, and the UK.
Before choosing the agency to work with, check what kind of property they can propose and what kind of help they provide. Check the rating on the Internet. This can help you avoid becoming a victim of property scammers and other kinds of criminals.
Documentation You Will Need to Rent out the Property
In order to rent a property in Dubai, you need to prepare a set of documents, such as:
- Tenancy contract. It is a document that confirms your house rent Dubai’s rental market can propose. It is the landlord’s responsibility to sign the contract correctly. Still, make sure to check it before signing, and make a copy for your own good;
- Copy of UAE’s resident visa;
- Copy of passport;
- Security deposit cheque (from 5% to 10% of the price of rent);
- Agency fee cheque (5% of the price of rent);
- Copy of Emirates ID;
- Refundable security deposit cheque (5% of the price of rent). This document is required to secure a house. It is paid to your landlord;
Deciding Between Long-Term and Short-Term Rental
To decide what kind of rental to choose, you should determine the purpose of rental. Are you going to stay in the city just for vacation? Or, maybe, you need to stay there for at least a few months due to job or family issues? Answering these short questions will help you determine what you need and for how long.
When you decide to rent a property, make sure to take care of such things as:
- The period of rental;
- The type of rental you need;
- The place of rental;
- Finding an agency to rent a property;
- Collecting all required documents.
By completing these goals, you will be 100% sure that nothing will ruin your life in a place you rent.