More landowners in the UAE are presently open to short-term rent agreements in an offer to help pay or keep their properties involved in the midst of a property market slowdown, a land firm has shown.
“With rental prices low, investors are educating themselves on the short-term lettings market as they see more profit can be made and it gives them time to think about future plans they may have for the property while receiving an income from it,” said Maria Sale-Layug, the head of the new short-term lettings department at Allsopp & Allsopp.
The real estate firm declared on Sunday that it has just built a department to handle short-term transactions as a piece of its expansion plan.
“As a business, we are always looking for ways to grow and reach a different clientele. Short-term lettings are the next step for us and if we are being honest, is a market we could have stepped into a couple of years ago,” said Lewis Allsopp, CEO of Allsopp & Allsopp.
The shift in the market
Housing rental plans that are under a year used to be unheard of in the UAE. Most landowners would like to lease their level or estate for at least one year, a game plan that guarantees landowners get pay consistency for the entire year.
Notwithstanding, with the Covid pandemic affecting numerous livelihoods and organizations, the market has changed. Nowadays, a few tenants would not really like to be integrated with a drawn-out agreement, particularly with the vulnerability encompassing their type of revenue.
As per Allsopp and Allsopp, inquiries about short-term lettings got after the COVID-19 lockdown. There additionally gives off an impression of being interest from guests, who presently really like to remain in private facilities instead of in hotels.
“Short-term lettings have recovered well post the COVID-19 pandemic lockdown in Dubai with inquiries coming from both guests and landlords as they navigate their way through the changes they have faced,” the real estate firm said in a statement issued on Sunday.
According to Sale-Layug, short-term lettings is an industry that is recovering well “due to the anxiousness of travelers”.
“People who are traveling for business and with their families are looking to stay in private accommodation – they are opting against hotel stays to avoid overcrowding,” she said.
“Many landlords have [also] enquired about short-term lets due to a change in circumstance and a repel from long-term commitments.”
She wrote that landlords won’t just gain from the flexibility of short-term rentals, they can also gain a higher return.
“If a landlord feels they might want to sell at some point, they don’t have to give the mandatory one-year notice to a sitting tenant. If it’s a second property, landlords can earn an income but still have the property for their own use at periods through the year, or even retain the option to move back into it themselves, should the need arise at any point,” she said.