How do you maximize rental income in Dubai during the summer?
Despite the pandemic's negative effects on the hospitality industry, the short-term rental market is thriving, with occupancy/higher nightly rates increasing by 124%. If you are a homeowner looking to increase the profit of your vacation home, or simply someone looking for a reason to invest in a home, here are some pointers to consider:
Make your pricing perfect!
To begin, disregard the monthly rents charged by long-term rental properties. Rather, examine them only to perform a comparative cash flow analysis to determine which leasing model would generate the most profit for your property. Long-term rentals are not your competition as a vacation rental operator; rather, hotels and other comparable vacation units are. Get a sense of what hotels and similar vacation rentals in your area charge. Consider aiming for a nightly rate that is around 20% less than that of nearby hotels.
Keep in mind that as you establish yourself and your unit, your pricing can and should rise. With few or no reviews at first, you'll most likely need to entice your first guests with low prices. Once you've established credibility through reviews, you can raise your pricing to compete with or slightly outperform nearby competitors.
Longer stays should be encouraged.
Turnovers, as with long-term rentals, are the source of the most labor and costs in short-term rental management. From cleaning to coordinating access with guests and answering their questions, renting to 10 guests in a month takes far more time and money than renting to 3 or 4 guests a month.
Furthermore, short bookings can cost you more lucrative longer bookings. If you rent your unit for one night, a prospective two-week guest will be unable to book your unit for that block. As a result, price accordingly. Charge a higher nightly rate for stays of less than a week, and then give a discount to guests who stay for at least seven days. Continue to graduate that discount as they stay longer, up to a month.
Create a foundation for reviews.
Even if you have the best listing in the world, if you don't have any reviews, guests will be hesitant to book with you. Begin with a straightforward two-pronged approach to reviewing reviews. First, if you don't have many reviews, price your property competitively to beat out the competition. Second, devise a guest follow-up strategy to secure reviews.
Collaborate with Elite LUX Homes
Fortunately, Elite LUX Homes can handle everything for you, allowing you to sit back, relax, and count your dirhams. Is your apartment not quite ready for visitors (or is it completely empty)? From staging to full design services, Elite LUX Homes has it all. They also communicate with prospective guests, manage arrivals and departures, coordinate across platforms, and handle all paperwork and regulations. Even the laundry is done by them! There's never been a better time to rent out your apartment, whether you do it yourself or hire Elite LUX Homes. Turn your house into a source of flexible income that you can control!