Staycations and remote working are here to stay, and so is the strong demand for holiday homes on 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 investment goals, but the fundamentals could serve as a good starting point for you when scouting for your next major property investment.
Pick a location that matters
No matter how cozy or stunning the 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, DIFC, City Walk, Blue Waters, Dubai Creek Harbour, Dubai Hills, and more.
Target occupants
Another thing to consider when buying a holiday home for lease is its occupants. Are you looking to accommodate large families or groups, couples, or individuals? However, the more adaptable the 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 the purpose for doing so.
If it’s for a new income stream, for instance, all buying decisions and considerations should be made to achieve 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 family and friends. Take the time to understand the motivation for purchasing a vacation home.
Know the budget
Property investment does not come cheap, so you have to conduct diligent research and cover every aspect of the project. The actual budget is one of the essentials. As an investor, take into account not only the price of the property but also other factors such as maintenance, insurance and utilities.
End-to-end property managers can help better market and care for the property and guests. They can work to make sure that you don’t lose access to the property when you want to use it despite offering it to vacationers on short-term lets.
