Following my last article -Tips For Tenants-, thi time I would like to cover some interesting guidelines for those Dubai landlords adventuring to the Short-Term Rental business.
It the type of and old practice, particularly in the Italian, Spanish or French Riviera to book your own property being a holiday-home to tourists. The short-term rental business has proven pretty successful in those countries with strong tourism affluence and also, since Dubai is implementing as an international holiday destination, it is interesting to consider this investment opportunity.
By renting out a house on short-term basis a landlord contains the chance to make use of the property for his/her own personal use, generate a higher return of investment by letting it to holidaymakers and also at the same time frame utilize the property value appreciation.
The short-term rental concept could possibly be applied from any location however the real answer to its success lays rolling around in its implementation inside local market in reality any successful business idea might be taken to Dubai and prove a complete disaster, the idea on it’s own are few things new and definitely not invented in Dubai therefore the actual heart with the business is not very much inside the idea as it really is rolling around in its execution.
Having the idea and the product (the property) is just about 10% with the business, what really matters is the marketing which I would value at 70% along with the actual daily running which could be priced at 20%
Setting up a rental for the short-term rental requires experience, interior designing skills, awareness of details and many some time and resources to adhere to inside the actual furnishing process, utilities connections, daily running and marketing.
Some details are very important of course, if overlooked, will compromise the stay of your guests hence it really is essential to create the exact property with the guests needs in mind as opposed to following a questionable personal taste.
One detail which is consistently overlooked could be the actual efficiency in the bedrooms curtains, which within the majority with the cases usually do not block the windows light properly, rise as a result of lack of experience or good bargain ready-made curtains producing a horrible 6 am daily wake up demand your friends and relatives.
Another important factor to acknowledge could be the considerable investment being produced in purchasing the bathrooms face and body towels, it can be in fact important to provide a top number of these so to allow a twice weekly replenishment and the same applies to bedsheets, quilt covers, pillow cases etc
In many cases the do it yourself schemes work virtually if you do have experience, knowledge and passion about what you are engaging with, other wise it’ll simply result in complete frustration as you would expect.
Without thinking about the daily management issues and the inevitable guests complaints perhaps the twice-weekly house keeping service is a demanding task then just what it seems
A reasonable treatment for this, especially if you happen to be handling more the other property, is to refer the complete marketing and management to your professional agent who for a small charge (usually 20% with the rental) will need the weight off shoulders with a smile.
In the actual market a 5 stars marina-view one bedroom apartment in Dubai Marina Face 1 (where all the cafs and restaurants are) will rent for approx AED 95.000/- annually if unfurnished, the same property can fetch up with a AED 235.000/- a year if rented out furnished on short-term basis and after deducting the 20% agency commission plus about AED 40.000/- for your 5 stars furnishing and approx AED 8.000/- 12 months for that bills, this can live the owner having a net AED 142.000/- (on occupancy rate of 79%)
The numbers speak on their own however is essential to remember that high is a superb return additionally there is a certain risk and a lot of will agree that the most delicate figure from the above calculation is the occupancy rate which cannot be guaranteed in any property short-term rental management contract.
Keeping these consideration planned, do you desire to engage a realtor to your short-term rental requirements, it would be smart to commit with an initial trial period of maximum six months, this era shall allow you to gather enough details and may provide you with a good plan regarding the reliability and actual potential of the agent/marketer you happen to be coping with.
Would you rather get more hands-on with all the business, you could pick a non-exclusive marketing agreement, available too within the market and will also be capable to market your property through other agent/marketers and potentially improve your exposure this really is not really the optimum solution the truth is many agents will give priority for the properties of those clients with whom they’ve got contractually committed with.