Are you looking for a place to live in the UAE? Renting a property can be a great option if you are not in a financial position to buy, or want the flexibility to move regularly. But, one of the key things to decide is whether to opt for a short-term or long-term rental. Both options have potential advantages and drawbacks which we'll explore in this blog post to help you decide which is right for you. 

Short-term Rental

Short-term rental means renting out a property for a short time - whether it's a few days, weeks or on a monthly basis. These properties are typically fully furnished and come without any long-term commitment. There are various reasons why people choose a short-term rental, such as vacation, business travel, or as a short-term solution when moving to a new city or area. 

Types of Short-term Rental

There are various types of short-term rental, including: 

Serviced Apartments: fully furnished living spaces that come with amenities similar to hotels.

Holiday homes: these are private residences that can be rented for a short period

Hotels: offer different kinds of rooms, services and amenities and are ideal for travellers.

Long-term Rental

A long-term rental is where you rent a property for one year or more. The landlord and tenant will both sign a rental agreement which outlines the rental price, length of the tenancy, how the rent will be paid and other important terms and conditions. 

Types of Long-term Rental: 

Apartments: properties within a residential building ranging from studios to multiple bedrooms.

Villas: standalone homes offering more space and privacy than apartments.

Townhouses: multi-level homes that share walls with adjacent units.

Penthouses: luxurious apartments located on the top floors of apartment buildings

Pros and Cons of Short-term Rentals

Pros

Flexibility: Renters have lots of flexibility to choose the length of their stay. They can opt for month-to-month leases or shorter stays such as a weekly lease. 

Lower upfront costs: Short-term rentals often have low or no upfront costs. In comparison, tenants in long-term properties often have higher upfront costs for things like security deposit, advanced rent and DEWA deposit. 

Convenience: Short-term rentals are fully furnished and usually come with all bills included, making them an incredibly convenient option 

Cons

Expensive: short-term rentals can be considerably more expensive than long-term rentals because you are paying for the convenience of having all furnishings and bills included. 

Limited options: whilst there are lots of short-term properties in some communities, like Dubai Marina, it can be difficult to find short-term rentals in other communities. 

Lack of security: Where a long-term rental can provide tenants with long-term security, choosing short-term accommodation can mean having to move regularly based on property availability. 

Pros and Cons of Long-term Rentals

Pros

Stability: Long-term rentals offer more stability, as renters can stay in the same place for longer.

Personalisation: Long-term renters can personalise the property to their taste by adding their own furniture and decorations. 

Lower Cost: Whilst a long-term rental may mean more cost upfront, overall, it is usually less expensive than choosing a short-term rental

Cons

Lack Of Flexibility: As the rental agreement is for at least a year, it's important to be confident of your medium-long-term plans before committing to the rental

Bills And Furnishings: Unlike short-term rentals, tenants are responsible for the time and cost of bills and furnishings

Maintenance And Repairs: You may be required to pay for some repairs and maintenance for the property 

What is the Cost of Long-Term Rentals in the UAE?

On average, long-term rentals in the UAE range between AED 25,000 and 200,000 annually. Dubai and Abu Dhabi are more expensive than other parts of the UAE regarding renting because of higher demand and larger availability of luxurious properties. The average annual rent in Dubai and Abu Dhabi are:

Apartments

Property Type: Studio Apartment

Average Rent in Dubai: AED 45,000

Average Rent in Abu Dhabi: AED 40,000

Property Type: 1 Bedroom Apartment

Average Rent in Dubai: AED 65,000

Average Rent in Abu Dhabi: AED 55,000

Property Type: 2 Bedroom Apartment

Average Rent in Dubai: AED 110,000

Average Rent in Abu Dhabi: AED 90,000

Property Type: 3 Bedroom Apartment

Average Rent in Dubai: AED 170,000

Average Rent in Abu Dhabi: AED 145,000

Villas

Property Type: 3- bedroom villa

Average Rent in Dubai: AED 180,000

Average Rent in Abu Dhabi: AED 160,000

Property Type: 4- bedroom villa

Average Rent in Dubai: AED 325,000

Average Rent in Abu Dhabi: AED 300,000

Property Type: 5- bedroom villa

Average Rent in Dubai: AED 450,000

Average Rent in Abu Dhabi: AED 410,000

Townhouses

Property Type: 3- bedroom townhouse

Average Rent in Dubai: AED 135,000

Average Rent in Abu Dhabi: AED 115,000

Property Type: 4- bedroom townhouse

Average Rent in Dubai: AED 250,000

Average Rent in Abu Dhabi: AED 220,000

Moving in Expenses

In Dubai:

DEWA Deposit - AED 2000

Security Deposit - 1 or 2 month’s rent

Agency fees - 2-5% of annual rent

Moving cost - AED 800-4500 

In Abu Dhabi

ADDC Deposit - AED 1000

Security Deposit - 1 or 2 month’s rent

Agency fees - 2-5% of annual rent

Moving Cost - AED 1000-5000

What is the Cost of Short-term Rentals in the UAE?

Depending on the city and area, short-term rentals in the UAE can range from AED 2500 to AED 65,000 or more per month. You can find a great deal on short-term rentals by comparing prices between different providers online. Websites like Expedia or Airbnb offer an easy way to compare prices between rental options. When using these platforms, carefully review certain aspects such as additional fees, accurate property descriptions, amenities and cancellation policies. You can bargain with landlords for a lower rate if you are renting for an extended period. Some rental companies also introduce special offers at certain times, e.g. weekdays and off-peak seasons (summer), so be sure to look out for those, too. 

Why is Renting a Good Option in the UAE?

Affordability

Renting is a much more affordable option for those who do not yet have the savings to cover the deposit and upfront costs of buying a property.

Flexibility

If you are unsure about your long-term plans or frequently move due to work, renting allows you to change your residence without the commitment of property ownership.

Property Market Risks

Economic conditions, market trends, and other factors can influence property prices. When you rent, you don't have to worry about these factors or whether property prices go up or down - but you do have to be prepared for changes in rental prices. 

Freedom to Upgrade or Downsize

Renting allows you to upgrade to a larger property if your circumstances change or downsize if you want to reduce expenses.

Is it Better to Choose A Short-term or Long-term Rental?

There is no one right answer regarding whether to choose between short-term and long-term rental options in the UAE. Short-term rentals are great for those seeking lower upfront costs, convenience and flexibility. But, overall, they are more expensive than choosing a long-term rental. In comparison, long-term rentals offer the stability and security of having a longer-term home. 

Consider short-term rentals if you:

- Are in the UAE for a short time or are new to the country

- Want to test out a community or building before making a commitment.

- Like the idea of moving frequently 

- Would like the freedom of a fully furnished property with bills included

Consider long-term rentals if you:

- Plan to stay in the UAE for a long time.

- Would like a lower overall cost 

- Are ready to commit to a property and community for at least one year

- Would like the option to furnish a property as you wish

- Don't like moving frequently 

It is all about finding what feels right for you. The choice is yours. Make it a good one!