One of the first decisions for a Dubai buy-to-let investor is how to rent it out: a traditional annual lease, or a short-term holiday let. Both can work — the right answer depends on the property, the location, and how hands-on you want to be.
Long-term (annual) rentals
The conventional route is a one-year tenancy registered via Ejari. It offers stability and low management overhead: one tenant, predictable income, and minimal voids. Gross yields are lower than headline short-let figures but far more certain, and costs are modest.
Short-term (holiday) rentals
Short-term letting can generate higher gross income in the right location, but it is an operating business, not passive income. Key considerations:
- Licensing: Holiday homes must be permitted and registered with Dubai's tourism authority (DET). Operating without a permit is not allowed.
- Costs: Furnishing, utilities, cleaning, platform fees, and professional management can consume a large share of gross income.
- Seasonality & voids: Occupancy swings with the season and events, so revenue is less predictable.
- Location dependence: Tourist-heavy, amenity-rich areas (e.g. the Marina, Downtown, Palm Jumeirah) suit short-let far better than commuter communities.
Comparing the two fairly
Always compare on a net basis. A short-let's higher gross can shrink to a comparable — or lower — net yield once management and voids are included. Our gross vs net yield guide and yield calculator let you model both scenarios for the same unit.
This is general guidance, not investment advice. We model both strategies for a specific property on engagement, with no agenda to sell a management service.
Apply this lens to your own mandate with our team.
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