Letting a property as a holiday home is still one of the best income streams you can consider when you live in Dubai. By investing in the right house, villa, or apartment, you will have an additional source of steady revenue since the city remains a popular tourist destination.
With “staycation” remaining a popular buzzword among locals, you can still earn money from your new property even during the off-peak season.
Another upside of owning a holiday rental is that it is easy to manage. Since you won’t have long-term tenants, you won’t have to worry about dealing with complaints and various maintenance services to meet their demands.
Moreover, your holiday rental can be your second home whenever you need a staycation yourself. You can have your family or friends stay here when they visit you, thereby helping them to save money on their accommodation.
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Getting the Best Returns From Your Holiday Rental Investment
Since earning additional income is your main goal in buying a property for sale in Dubai, you have to go through the whole purchasing process a bit more methodically.
If you fail to choose the right property, you won’t be able to earn income from your holiday rental. You may even lose money on it.
To ensure you will own a profitable holiday rental, follow these tips to choose the right property to invest in:
1. Prioritize the Location
Location is the most important factor people look for in a holiday rental. Whether they are tourists in Dubai or locals looking for a weekend getaway, they want to stay somewhere near popular spots and places of interests they wish to visit.
Downtown Dubai is one of the best places to own a holiday rental in. People staying here can easily go to the Burj Khalifa, The Dubai Mall, and Dubai Opera. Additionally, they will be spoilt for choice in terms of retail stores, restaurants, and clubs.
Buying an apartment in this area and turning it into a holiday rental is, therefore, a smart move. Other areas where you can consider owning a holiday rental in Dubai are the Dubai Marina and Bur Dubai.
If you want to buy a property in another area, make sure it is near transportation hubs, popular tourist destinations, and business centres.
2. Choose an Attractive Property
When you manage a holiday rental, you will depend greatly on photos and videos to advertise it and to attract people. Finding a property that looks amazing with little to no work or touch-up will help you save time and money as you start letting it.
A new build property will look great on pictures and videos, which you will use on listings and social media marketing. You only need to furnish it (if necessary), add the essential kitchenware, appliances, and dining ware, make the bed, and spruce up space with a few decorations.
If you choose an apartment with a great view, you will have another feature that you can highlight on your advertising materials and use as a selling point.
When you invest in a newly built property with amazing views, you can save plenty of time and money on sprucing up your rental. You will be able to accept bookings as soon as possible, too.
3. Consider the Features Guests Can Have Access to
Aside from ease of access to popular tourist spots and places of interest and excellent views, you can attract more guests by getting a property that gives them a better level of comfort and convenience.
An apartment building or villa complex with swimming pools, in-house cafes, restaurants, fitness centres, and spas gives guests more options for entertainment and recreation. Moreover, you make it easier for them to access and enjoy these amenities.
Additionally, make sure your holiday rental has the essential items that will make your guest feel at home and help them save some money.
A fully functional air conditioning system is a must for all short- and long-term let properties. Your guests need to feel cool and comfortable in your home the whole time they are staying there.
A gas or electric range, microwave oven, toaster, coffeemaker, cookware set, and dining ware encourage your guests to cook and make their own coffee, thereby minimizing their need to go out and spend more money on their food.
Free Wi-Fi connection is another amenity that will delight all your guests.
Of course, make sure to provide your guests keys to their bedrooms so that they can lock up when they go out as well.
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4. Check the rules and regulations regarding rentals in the area
Although you have found the perfect property and are pretty excited to promote it and accept bookings, you can’t start advertising and earning yet until you are sure you can turn your investment into a holiday rental.
Before purchasing property, find out if you are allowed to use it for short-term letting.
Additionally, check what permits or licences you need to get from the local authorities to transform a residential home or apartment into a holiday rental.
Also, if you want to purchase an apartment in a complex, you have to check with the developer, corporation, or stakeholders if you can turn it into a holiday rental. You also have to look into any zoning laws that may apply to your future rental.
To ensure you achieve your goal of having an additional income stream with your new property, find out beforehand if you can turn it into a rental legally, and how you can do it.
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5. Choose a property you can afford
A holiday rental can be a reliable additional source of income. However, it does not mean that you have to go broke purchasing one.
Even if you have enough savings for the initial outlay and can get a loan or mortgage at excellent rates, keep in mind that you won’t start earning within weeks of buying the property. You won’t be able to level out after several months of continuous booking, either.
You have to be realistic when buying a holiday rental. Aside from the property payments, you have to pay other recurring expenses, such as utilities, insurance, and cleaning and maintenance services. All these will have to come out of your pocket.
While waiting for the money to come, avoid falling into a debt trap by buying a property that you can afford.
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Choosing the right property to transform into a rental in Dubai is easy if you can find the best real estate deals first. Use both traditional and modern techniques to search for residential properties, and you will be able to find one that you can afford and that will become a reliable income stream.