SHORT VS LONG TERM PROPERTY RENTAL

Based on our proven ability to achieve a minimum 70% occupancy through short-term property rentals, the following chart clearly indicates the difference in the rental yield.

The following is based on a 2 bedroom villa in typical development in Dubai. Figures are in UAE Dirhams and based on market averages at the time of publication of this document.

* Based on renting out the property annually
** Based on a daily rate of AED 1,200 70% occupancy, 25% commission

Although the figures will vary depending on the particular property, the table above clearly shows that the rental income from a short-term property rental in this scenario is almost three-fold that of a long-term or annual rental. This makes it a far more lucrative and compelling choice for even the most risk adverse investor.

ASSESSING RISK

The risks involved in investing in property are not that much different from other investments, but often with less management time needed and the possibility of a higher return. Any venture into property acquisition is going to be exciting, but it is important that it is profitable. In acquiring rental properties, an investor must first decide what they want to accomplish, and over what period of time.

Buying and letting property has become an alternative to other forms of investment, particularly short-term rentals. The risk factor is relatively low, and Orange Real Estate LLC can guarantee its clients long-term rental income, although it has a proven ability to achieve much higher returns as illustrated above.

If you have a villa or apartment in Dubai that you would like to rent out through Dubai Short Breaks please use the form below to contact us and we will send you details regarding our service.