Short-Term or Long-Term Rental? Here’s How to Choose What Actually Works for You?
So, you’ve bought a property (or you’re about to) – now what? One of the common questions we hear from investors is: “Should I go for short-term rentals or just stick with a long-term?” And honestly? There’s no one correct answer. It depends on you – your lifestyle, your goals, and how involved you want to be.
The actual decision regarding the long-term vs short term rentals in Dubai is based on your renting duration. While both options having the merits and demerits, now more and more homeowners now chose to rent their property short-term rather than the usual annual
Short-Term Rentals
When it comes to renting a property; there are two options that you can consider short-term or long-term rentals in Dubai.
Short-term rentals are like running your own little hotel – you rent your place out for a few days, a few weeks, maybe a couple of months. In Dubai, this works especially well in hotspots like:
A short-term setup might be for you if:
- Your property is in a tourist-friendly location
- You’re chasing high returns even if the income isn’t 100% predictable
You’ll need a holiday home permit (Dubai has rules, of course) but once you’re set up, you’re in the part. In cities like Dubai, landlords must obtain a holiday home licence from the Department of Economy and Tourism (DET) to legally operate a short-term rental.
Pros: Great income, flexibility to block dates for yourself and higher ROI potential
Cons: More guest turnover, more maintenance, more time involved
Long-Term Rentals
A long-term rental follows a more traditional model, typically a 12-month lease registered with Ejari. It suits investors who value consistency and prefer a hands-off approach.
Long-term might be for you if:
- Your property is in a residential or family-friendly community
- You don’t want to deal with guest turnover or weekly cleaning
The rent is locked in for the year which give you predictability in your cash flow. You can also use tools like the RERA rental increase calculator to ensure fair renewals.
Pros: Predictable income, less daily involvement, long-term tenants
Cons: Slightly lower returns (in some areas), less flexibility if you want to use the property
So… Which One Should You Go With?
Before you decide, ask yourself:
- Where is your property located?
If it’s in a tourist hotspot—short-term might win. If it’s more suburban or family-focused, long-term could be better.
- What kind of returns are you aiming for?
Fast cash flow – Short-term. Steady, stress-free income – Long-term.
How We Help at LCRE
Most people don’t need just options – they need clarity.
That’s where we come in.
We’ll show you the real numbers, – what’s working in the market right now – and help you choose the strategy that’s actually aligned with your goals.