Short Term Advantages

Rental income Comparison between Short & Long Term Lease:

Renting One-bed room unit based on long term:

  • Average rate for One bedroom in one year is  38,000 (for 2019)

  • Average of vacancy  period time to find tenant is 45 days

  • Average gross period the tenant required from booking time to start the agreement is 20 days.

  • Property management charge 2000 AED        

  •  Associated Risks with long term lease condition:     

  1. Vacating default tenant will be taken 3 month

  2. Terminate earlier  the agreement by the tenant 

  3.  Abandonment Risk   

  4.                                                  

After All considerations  the profit (without deducting  service charge) will be 29,500 AED per year

Renting One-bed room unit based on Short term:

  • Average rate for One bedroom in one month  is  6,500 AED for 2019 (yearly  78000 AED ).

  • Average of vacancy period of time to be occupied the unit in whole year will be 15 days.

  • Property management charge 15% of the rent amount.  

  • Average Utility cost (Dewa, Due,..) will be 10,000 yearly

  • Associated Risks with short term lease condition:

  1. Damaging or stealing furniture items.        

After All considerations  the profit (without deducting  service charges) will be 51,000 AED per year

Please be informed that all the above data are true and based on Zenith short term lease rental and market analysis