Your Guide to Investing in a Holiday Home for Short-Term Rental
By Cristina Butcaru, General Manager, Nasma Luxury Stays
Staycations and remote working are here to stay, and so is the strong demand for holiday homes for short-term leases. Many property owners are now catering to this demand given the attractive return on investments.
It’s no surprise that property investors have begun to gravitate towards the market. If you’re thinking of buying a rental holiday property, it’s easy to get swayed by the hype. However, like any other investment, purchasing a vacation home for short-term rentals entails factoring in a lot of essentials. Considering the money involved, impulsive investment decision is a no-no.
Remember that each property buyer has a different set of unique investment goals, but the fundamentals below could serve as a good starting point for you when scouting for your next major property investment.
Pick the Perfect Location
It goes without saying that location matters. No matter how cozy or stunning your property is, it won’t matter much if it’s located in areas not frequented by holidaymakers or if services such as cafés and restaurants are not easily accessible.
You can find numerous premier areas across the UAE. In Dubai, some of the prime areas are Jumeirah Beach Residence (JBR), Palm Jumeirah, Dubai Marina, Downtown Area, Dubai International Financial Centre (DIFC), City Walk, Blue Waters, Dubai Creek Harbour, Dubai Hills, and many more.
Think About Your Target Occupants
Another thing to consider when buying your holiday home for lease is its occupants. Are you looking to accommodate large families or groups, couples, or individuals? However, the more adaptable your property is, the better. This way, you can offer the property to diverse groups of vacationers.
Know Your Why
Not only should you set your goals when investing in a holiday home. It’s equally important to know your purpose for doing so.
If it’s for a new income stream, for instance, all buying decisions and considerations should be made towards achieving optimum rental income. You might also want to factor in the occasions when you want to use the property yourself to spend the holidays with your family and friends. Take the time to understand your motivation for purchasing a vacation home.
Know Your Budget
Property investment does not come cheap, so you have to conduct diligent research and cover every aspect of your project. Your budget is one of the essentials. As an investor, you have to take into account not only the price of the property you’re eyeing but also other factors such as maintenance, insurance, utilities and more.
Ask An Expert
Consulting a property expert may save you time and effort. End-to-end property managers can help you better market and care for your property and guests. They can work with you to make sure that you don’t lose access to your property when you want to use it to enjoy the holidays with your families despite offering it to vacationers on a short-term basis.