AirBnB investment in Dubai - possible to rent?

Marvin121
Level 2
Berlin, Germany

AirBnB investment in Dubai - possible to rent?

I’d like to get an apartment in Dubai as an investment. But to get a feeling for this, I would prefer to start with a rented property.
However, not surprisingly, most landlords aren’t too fond of short-term rentals. But I’ve heard that some people have been able to do it.

How would you find a landlord who’d allow AirBnB-ing?

How can you find properties with a good ROI?

15 Replies 15
Helen3
Level 10
Bristol, United Kingdom

By doing your market research @Marvin121 

 

Only you can estimate an ROI once you have researched comparable STRs to the ones you want to rent and done your research in  terms charge out and occupancy rates and put a budget together for your start up and ongoing costs.

 

With a rental do you have the money to cover the rental charges  whether or not you get STR income?

 

It is hard to find  landlords willing to let you sub-let and some areas and  buildings ban STRs completely. 

Thanks for your reply @Helen3 .

 

Yes, I have of course done some research already. For example, I have talked to STR agencies. But none of them could help with finding rental properties suitable for STR.

 

Thus my question how others with experience in this market have done it. Especially in attractive areas like the Marina.

 

I would also of course be able to cover the rent irrespective of STR income.

Helen3
Level 10
Bristol, United Kingdom

This forum is mainly used by hosts who own their properties. If you want to run an arbitrage scheme speak to those in that sector.

 

Talking to management companies isn’t doing market research. This won’t help you identify your ROI, demand for the type of property you want, or help you find  landlords willing to sublet for STRs. 

And there is no ‘of course’ about you being able to cover rent if you don’t have booking. Many arbitrage operators went bust during Covid because they didn’t set aside money in their STR business to get them through the lean times. 

 

@Helen3 


Ok, so how would I do proper market research then? AirDNA?

 

I’m also open to buying, I’m just thinking renting would lower my risk.

If you want to run an arbitrage scheme speak to those in that sector.” - this sounds like you have an idea where I would be able to find them? I would love to talk to them, I simply have no idea where to find them.

Helen3
Level 10
Bristol, United Kingdom

Let Google be your friend @Marvin121 lots of get rich quick arbitrage companies on the web promising you untold riches if you follow their book/training scheme etc.

 

in terms of market research - there are multiple sources you can use - listing companies to manually check pricing, tourism footfall reports, government location research reports, talk to estate agents, property investment reports etc etc 

I am not talking about get rich quick schemes. I am simply looking for AirBnB hosts who have done this before, but not as owners.

 

Are you even based in Dubai?

Hello Marvin,

 

I am quite interested by your post and your feedback about it.

 

Have you been renting apartment & putting it on AirBnB ? Is it interesting ?

 

Would be glad to discuss 🙂

Same here, I am searching for an apartment to start with, but I got so many NOs for subleasing. I watched some youtube videos on how to convince the owners on that, but the funny part is nobody can reach the owners here , it is all with the agent.

any advice ? 

A very good point Abdullah - the challenge here is that most owners avoid the bureaucracy of having to change the contractional clauses & try new methods of profiteering.

And we can agree that the issue is not accepting 'risk' but the apatite of risk people are 'able' to accommodate in order to start.

@Marvin121 @abdullah94, some supportive information mates:

Reach out to these companies as they have been listed as agencies that can help with short term rentals according WhatsOn Dubai:

1. https://booking.frankporter.com/

2. https://www.houst.ae/dubai/

3. https://air-dxb.com/

 

Do let us know if you have any success with short term rentals in the region or via these agencies. The more news on this process in the region, the better.

Cheers

Mohamed697
Level 1
Abu Dhabi, United Arab Emirates

Hi 

Im in the process of starting my vacation homes rentals company  in Dubai too. 

so for now the main challenge for rental arbitrage is as per the law in dubai you can have only 1 property as tenant that you can sublet as holiday home (HH). 

I'm sure as a company it can be done (to have multi units) somehow but m still figuring out how. i tired that holiday home portal but i get opposite 2 answers.

 

1st answer was, I can rent the apartment under my name then sublet it to my LLC HH company

 

2nd answer was I can't do that. 

 

if any one knows please share. 

Your landlord will never allow subletting as a vacation home. Subletting without approval from your landlord is illegal. You also wouldn't be able to get the required license for short-term rental without approval from your landlord. I generally wouldn't recommend breaking the law, especially not in the UAE. The end.

Joan2768
Level 1
Dubai, United Arab Emirates

Hello, I currently have an air bnb in Dubai and the advise id say for starters I see you dnt wanna risk ! You could go ahead rent a place as the tenant and then go ahead to sub rent it that’s what I did ! It will be worth it ! Dubai or UAE in general is very promising and has great market for that 

Hi

 

Would you be kind to spare sometime on the phone based on your convenience? I’ve been looking at acquiring a studio/1bhk in Dubai 

Hi Joan, 

Yes but to add to your point - we would still need to inform the owners first & this is the challenge that most people trying to sublet face. Also most contracts have a no-subletting clause & according to Dubai economy & tourism, tenants are not allowed to sublet without informing the owner & registering their property with the Dubai tourism department.