In the previous article, we provided you with Tips for tenants. This article describes tips for
landlords who are planning to start Short-Term Rental business in Dubai.
Renting out personal properties as a holiday-homes to tourists and visitors is an old practice. If we look at to the ancient history of Italian, Spanish or French Riviera, we would find that people have been renting out their properties for centuries, in one way or the other to earn profits. Hence, it wouldn’t be inappropriate to say that short-term rental business is no way a new concept; indeed, it has a long historic background.
Although short term rental accommodation is offered by different businesses in almost every part
of the world, but the countries with more attracting tourists’ sites are hottest places for
short-term rental apartments. Being one of the hottest tourist’s destinations in the world,
Dubai is an ideal city for short-term rental apartments business. Therefore, every investor
desires to invest his or her money into the short-term rental business of Dubai.
By investing into Dubai self-catering apartments, businessmen not only earn heavy profits but
also the value of the building appreciates consistently. In case you buy a building to run
self-catering apartment on rent in Dubai, the value of the building increase with every passing
day. Hence, we can say that the short-term rental apartments make you profit in two ways.
How to be successful in the business of self-catering apartment on rent in Dubai?
To start a self-catering apartment on rent in Dubai, you would need not only money but also
expertise and skills to be successful in this type of business. According to experts, there are
two main aspects to be successful in the short-term rental business in Dubai; the property or
building and promotion and marketing of the business. It is believed that the property
contributes 10% to the success of the rental accommodation business and the remaining 90% is
contributed by the entrepreneur’s expertise and skill to provide comfortable living by offering
necessary services and amenities along with effective promotion of self-catering apartment on
rent in Dubai to attract guests.
A large number of guests would prefer to live in your self-catering apartment if it offers the
necessary standard services and facilities such as bedrooms with eye-catching interiors,
highly-trained staff to make guests feel comfortable, Internet access, telephone and fax
facilities, Jacuzzi, steam bath and sauna etc to make a comfortable living.
Some important details for Dubai self-catering rental apartment business:
As mentioned above, the building of the apartments, comfortable bedrooms and effective marketing
play vital role in making your short-term rental apartment business successful
is the most important part of your self-catering apartment because the ultimate goal is to provide guests with a beautifully decorated and fully furnished bedroom so that guests can enjoy the comfortable living during their trip to Dubai. You must select the appropriate furniture, window curtains and color of the walls.
This is yet another essential element to make your short-term renal apartment business successful. For a neat and clean living, you need to provide the guests with top-quality towels, bed sheets, quilt covers, pillow cases and sofa covers. Make sure, the rooms are cleaned regularly and bed sheets, towels and pillow cases are replaced before that start smelling unpleasant.
In case you have more than one self-catering apartments, it would be a wise decision to hire the services of companies or agents that offer marketing and management services. These agents not only manage your rental apartments professionally but also market and promote them efficiently to increase the number of customers. Usually, the agents charge 20% of rental revenues. Hence, hiring marketing and management professionals is an effective way to run the business successfully and take some weight off your shoulders.
You can offer the guests with fully furnished as well as unfurnished rooms. An unfurnished
5-star one bedroom with Dubai Marina-facing can be rented on approximately AED 95.000/- per
year. If the same bedroom is fully furnished, it will charge approx. AED 235.000/- a year.
Supposing the occupancy rate is 79%, the same room would get you AED 142.000/- per year after
deducting 20% agency commission, AED 40.000/- for the 5-stars bedroom furnishing and utility
bills. Although the occupancy rate is not guaranteed, this calculation enables you to find out
how much you can earn from a single bedroom per year when you hire an agent for your short-term
rental requirements.
To know the reliability and efficiency of an agent, it is advised to make a 6-month agreement
with the agent. If you are satisfied with the performances of the agent in promoting your
self-catering apartment and increasing the number of guests, you can enter into a long-term
contract with the agent.
