Rent in Dubai: Long term vs Short Term
– Hi, guys! My name is Denis and I’m a real estate agent in Dubai. – Today, in this video we will compare with you two different kind of rents … – A long term rent and a short term rent. – It will be a quick video and later on if you want I will go more into the details with each type of rent. – So, from 2015 the Tourism Department allowed landlords (homeowners) … – to rent their property as a holiday home. – So they can rent their units to the tourists. – Before it was possible but it was illegal. Let’s put it this way. – So right now, the landlord has an option to rent the property … – on the long term or on the short term. – And let me quickly explain to you what is the difference between these two options … – so maybe you will change your plans or maybe you will adjust them somehow. – So let’s start with the long term rent. – The main advantage of the long term rent is that you know exactly how much money you will get. – And another thing is that with the long term rent … – most probably you will get some money in advance. – So if you rented your property for two cheques … – (right now it’s difficult to get rent in one cheque but still, some companies are paying) … – so you can get some money in advance for 3 months, for 6 months or maybe even for 1 year. – And another thing is that you know exactly who is staying in your apartment. – It’s not so important. Don’t find it as an important point … – but some people they prefer to know who is using their unit. – What are some disadvantages of the long term rent? – The main disadvantage is that it’s quite difficult to evict your tenant. – So in case, you want to use the property yourself … – or in case you want to sell it … and as we know it’s easier to sell the property if it’s vacant… – you might face some challenges over here. – First of all, if you want to use it yourself or if you want to sell it … – you need to give a 12 months notice to your tenant. – Tenant, in case you have any kind of viewings, you need to show it somebody, … – tenant has a chance to tell you “I’m sorry, bring your client after I leave the property.” – He doesn’t have to show his unit while he is renting the property to the clients. – So over here, you might have some challenges. – This is what we have with the long term rent. – Let’s move on to the short term rent. – The main advantage of the short term rent is that … – over there you will get potentially more money than with the long term rent. – Why am I saying potentially? – The thing is that it all depends on the unit and on the location as well. – And what I want to mention about the location … – that it doesn’t always have to be next to the sea or in the downtown or in Dubai Marina … – because quite often when people are coming here to find the job, … – they have to spend here 1 month, maybe 2 months, who knows. – And during this time they need to find the place where they will live. – It’s quite expensive for them to stay in the hotel … – so they might prefer to take an apartment somewhere like in another part of Dubai. – So if you are talking about location it doesn’t always have to be next to the sea. – Even if the landlord owns the property in the JVC, in the Sports City and some other areas … – he can consider the option of the short term rent. – And yes, over there you have a quite good potential to get more money compared to the long term rent. – Another benefit of the short term rent is that you can get an access to the apartment within max 1 month. – Because once the agreement expires you can start using the apartment … – and you can use it for your own purpose or you can sell the property. – The ideal scenario that some landlords use is … – for example, they have the property they want to sell … – but the market still is not there, it didn’t reach their price. – And while they are waiting for the buyer they are renting their unit on a short term. – So it’s not like there is an empty unit which is on the market and it’s waiting for the buyer … – but there is a unit that generates some income for the owner. – And in case the buyer comes the seller can sell his unit without a tenant, an empty one. – Ok, and what are some disadvantages about the short term rent? – The main one is that it’s not that predictable compared to the long term rent. – If you are renting your property to a tourist there are obviously some seasons. – Sometimes it will be fully occupied and sometimes it can be vacant. – All this can bring some uncertainty to you. – Another disadvantage is that if you are renting it for example to the tourist again. – You should always check the apartment, what is the condition of the apartment … – and if it’s ready for the new person to come in. – Obviously, this problem can be solved if you will approach the property management company. – Like a holiday home company. – And they will take care of the unit … – so you will not have to worry about all this. – Obviously, you will have to pay them money for this job … – but as usual, it’s a good decision to go ahead with the property management company … – because they will do the listing for you, they will do the marketing … – they will list your property on the PropertyFinder, on Booking.com … – and they meet the guest and they will as well check if everything is ok … – and they will prepare the property for the next tenant to come. -So it’s quite difficult in some cases to choose what is better. – To go for the long term or to go for the short term rent. – Obviously, there are some areas that are more attractive for the short term options. – And once again, it’s not always units that are next to the sea. Still, some areas like Sports City, JVC can find as well tenants for the short term option. – Let me know in the comments below what kind of rent you prefer yourself and why. – Thank you for watching this video … – And I’ll see you in a next one. – Goodbye.