Dubai landlords can start thinking short-term rents again. Holiday home rentals could be among first to recover and landlords must take note.
Dubai , Dubai
22 August 2020, 12:00 AM
31 August 2020, 12:00 AM
The ongoing pandemic has had dramatic impact on property markets. The rental market too has also been severely affected - current rentals have in fact ground to a halt.
Tenants struggle to pay their dues and rents have been falling. Tenants too are looking to move into similar-sized properties at lower rents.
While property prices have fallen and values threaten to fall further, leaving the landlords more worried as many had invested in the hope of generating sustainable returns by now.
Of course, holiday home category doesn’t have magic solutions. But the landlord can be reasonably sure that the property as an asset will not depreciate and still be able to get a high single-digit return.
Most importantly, the possession of the property always remains with the owner - there is no need to worry about cheques not going through or tenants not leaving. On average, expect between 15-40 per cent more than what long-term rentals can fetch.
Dubai landlords have to make sure selecting the good management company to work with. There are many good ones and each with its own strength. Visit the office and get to know their team, because they will be handling the guests.