Why is short-term rental in Dubai more profitable than long-term rental?
— With short-term rentals, apartments stay in much better condition. The management company closely monitors the technical state of the property — the walls, ceilings, furniture, appliances, kitchenware, and more.
If something breaks, it’s promptly repaired or replaced.
In the case of a long-term lease (for one year or more), the owner can enter the apartment only after the tenant moves out — as required by UAE law. And quite often, that comes with an unpleasant surprise: mold, worn-out furniture, and sometimes a completely neglected interior.
If you’re unlucky with the tenant, the apartment may end up in very poor condition, and you’ll need to spend up to half of your annual rental income on repairs.
It’s always cheaper to maintain your property regularly than to do a full renovation every year or two.
— Another important point is that UAE rental law strongly favors tenants.
If a tenant doesn’t want to leave, they can legally extend their lease, and you won’t be able to access your own property — not even with the police.
The only legal way to end such a contract is to notify the tenant one year in advance and have a valid reason — for example, the sale of the property.
— It’s also worth mentioning how rental prices work.
After a year of tenancy, you can’t raise the rent if it’s already at the market level for your area.
If the rent is 10% below market, you can raise it only by 5%; if it’s 20% below, then by 10%.
By comparing long-term rental prices in 2022, 2023, and 2024, we’ve concluded that prices have remained the same — and in some areas popular among our compatriots, they’ve even gone down.
— When renting long-term, if you ever decide to sell the property, the price with a tenant will be lower than for a vacant apartment.
It will also take longer to find a buyer, since under UAE law neither you nor the buyer can access the apartment until the tenant moves out — meaning your potential buyer will only be able to see the property a year later.
— One of the advantages of short-term rentals is that under a management contract, you as the owner can personally stay in your apartment for up to 30 days per year.
— Another key convenience: with short-term rentals in Dubai, you don’t need to reissue any utility contracts.
DEWA (electricity and water), Empower (air conditioning), DU or Etisalat (internet), and gas connections remain under the management company.
With long-term rentals, all of these accounts are transferred to the tenant’s name.