Landlord Expectations vs Reality: Short-Term Rentals in Dubai
Owning a home in Dubai is a very large opportunity which we have come to see. Though the city has a great tourism base which in turn puts forward high returns for players like Airbnb and Booking.com, success in this is to do with in-depth knowledge of the market, meeting guests’ expectations, and also full compliance with Dubai’s laws.
Since 2016 One Perfect Stay has been at the helm of property management in Dubai. We have identified a trend which is that there is a large gap between what landlords expect and what we as a company are seeing play out. We present to you an objective look at what those expectations are against what is actually happening in the short term rental space.
What Might You Expect, and What Really Happens
Expectation: High, Consistent Returns
Because Dubai has a strong tourism industry, many people think they will always earn good money. Landlords often expect steady earnings that are as high as or higher than what they would get from renting out their property for a long time.
Reality: Seasonal Demand and Pricing Discipline
Tourism in Dubai goes up and down depending on the time of year. For example, a two-bedroom apartment in Downtown might make twice as much money in December and January because the weather is nicer and more people come for events. But in the summer, fewer people visit. In areas like Marina and JBR, fewer apartments are rented if costs are not lowered.
OPS Insight
We manage these ups and downs by using dynamic pricing and data-driven strategies. For example, a landlord in Dubai Marina struggled to fill their unit during the summer. By adjusting prices based on early bookings and key events, we helped them boost both their earnings and occupancy by 18% compared to the previous year.
Expectation: Passive Income
The idea of just setting things up and not having to worry about them is appealing. Many landlords think that once the property is listed, the money will come in with little effort.
Reality: Active Management and Guest Experience
Short-term rentals are part of the hospitality business. Guests want fast answers, simple check-ins, and very clean homes. Even one bad review can hurt your bookings for a long time. Because guests come and go often, you need to stay on top of cleaning, restocking, and fixing things regularly.
OPS Insight
At OPS, with our AirBnb management services, we have you covered. From answering guest messages any time of day to making sure your property is always clean. One owner in Palm Jumeirah used to manage everything alone and found it overwhelming, with late-night calls and frequent key handovers. When we stepped in, their property kept its 4.9-star rating, bookings went up by 25% in a year, and the owner felt much less stressed.
Expectation: Competition is Minimal
Some landlords think Dubai’s booming property market means there will always be high demand and not much competition.
Reality: A Crowded, Competitive Market
There are now tens of thousands of holiday homes listed in Dubai. Guests look closely at everything, including location, reviews, photos, features, and price. If a property does not stand out, people might skip over it.
OPS Insight
We create a plan for each property. Is it better for families, business travelers, or remote workers? For example, a Marina apartment could offer a full kitchen and easy beach access for families. A Downtown unit might have fast Wi-Fi, a desk, and be close to DIFC for business guests. When a property matches the right guests, landlords have a better chance of success.
Expectation: Pricing Can Be Set and Left Alone
Reality:
Long-term rentals have a set monthly rent. Holiday homes are different. Their prices need to change every day based on the time of year, how far in advance people book, and special events.
OPS Insight:
At OPS, we use flexible pricing tools and what we know about the area to set prices. We start with a basic price, change it for busy times and special events, and use timing rules to get the best results. This way works better than using fixed prices or just using automatic tools.
Expectation: Reviews Build Themselves
Reality:
Great review scores don’t happen by chance. They need good routines, clear rules, and steady service. Without these, even nice homes can drop below 4.5 stars, which makes them harder to find online.
OPS Insight:
We maintain:
→ We usually reply to questions in less than 10 minutes
→ We check in with guests during their stay to find and fix problems early
→ We are ready to quickly fix any surprises or issues that come up
Doing these things helps us keep getting 5-star reviews, which means your income stays steady over time.
Expectation: Any Operating Model Works the Same
Reality: There are three main structures:
→ Master Lease: The owner gets a set amount of rent, but there is a limit to how much extra money can be made.
→ Rental Arbitrage: A manager rents a property from the owner and then rents it out to someone else. This can sometimes mean the manager and owner want different things.
→ Management Model: The owner keeps control and makes most of the money, but pays someone else to handle the day-to-day work.
OPS Insight:
OPS uses the management model because it means our success is tied to the landlord’s success. If you do well, we do well.
Expectation: Costs Are Minimal
Reality:
STRs require upfront and ongoing investment. Landlords who ignore costs risk surprises later.
What to Budget For:
→ DET permit fees
→ Tourism Dirham (AED 10–15 per bedroom/night)
→ Furniture and decorating, with updates suggested every year
→ Cleaning and laundry costs depend on how often the place is rented
→ Money saved for things like fixing the air conditioning, making repairs, and buying supplies
→ Fees for putting your property on websites and managing payments
→ Insurance to protect you and your things
OPS Insight:
We work with landlords to create clear financial plans before starting, making sure the returns are realistic and can last.
Expectation: Setup is Quick and Simple
Reality:
To have a successful short-term rental, you need to do more than just put up a listing. The first year is about setting things up the right way.
OPS Year-One Roadmap:
→ Months 1–2 (Getting Ready): Make sure you are eligible, get the DET permit, make the property look great, and hire a professional photographer.
→ Months 3–4 (Launch & Testing): List on multiple platforms, set pricing rules, publish house manual.
→ Months 5–6 (Stabilization): Change prices if needed, improve your listing description, and reply to guest feedback.
→ Months 7–12 (Improvement): Take advantage of busy seasons, add nicer things to the property, invite guests to come back, and encourage more people to book with you without using other websites.
Following this plan helps your property earn as much as possible.
FAQs
Is short-term rental profitable in Dubai?
Yes. With average daily prices around US $200 and about 55% of nights booked, short-term rentals often make more money than long-term rentals. But how much you earn depends on how well you take care of the property.
Do I need a license?
Yes. You need a DET holiday home permit before you can list your property. If you do not get this permit, you could be fined or have your listing removed.
What is the Tourism Dirham?
This is a nightly fee for each bedroom: AED 10 for Standard rooms and AED 15 for Deluxe rooms. The operator must collect this fee and pay it to the authorities.
How should I price for peak demand?
Change your prices based on local demand. Think about holidays, school breaks, and big events like New Year’s Eve.
Aligning Expectations with Reality — The OPS Way
Running a successful holiday home in Dubai isn’t just about luck. It takes careful planning, knowing the rules, and consistent effort. At OPS, we work with landlords to match their goals with what guests are looking for.
We handle everything from getting the needed approvals and getting your property ready to choosing prices and taking care of your guests, so you can make more money without the daily hassle. If you want to begin or want your property to do better, contact us. We will make a plan and give you a simple estimate to help your property succeed.