The Dubai real estate market continues to grow rapidly, attracting both local and international investors. With a growing number of tourists, expats and remote professionals, demand for rentals of various formats remains high. However, property owners face an important question: which rental strategy to choose — daily or long-term?

The short-term rental sector is especially active in areas with high tourist flow - Dubai Marina, Downtown, Palm Jumeirah. Especially during high-demand seasons (winter, holidays, major exhibitions), profitability can increase several times.

However, daily rentals require active management: constant cleaning, check-in and check-out of tenants and problem solving in case of unforeseen situations. Also, in some areas of Dubai, there are restrictions on short-term rentals, requiring special licenses.

Long-term rentals provide a stable income and reduce management costs. This format is especially popular among expats moving to Dubai for work. By signing a contract for six months or more, the landlord can be sure of a constant cash flow and no need to deal with the property on a daily basis.

The choice of strategy is becoming increasingly difficult amid growing competition. Every year, the number of offers for both short-term and long-term rentals increases, forcing owners to compete for tenants by improving service, design and pricing policies.

In addition, tenant preferences are changing. Tourists are looking for a unique living experience, comfort and flexible conditions. And expats increasingly prefer furnished apartments with the ability to remotely process documents and pay.

In general, both strategies can be profitable if they match the characteristics of the property, market conditions and the owner's goals. Some investors successfully combine both approaches, adapting to seasonal demand. In the rapidly changing Dubai market, flexibility and thoughtful management are the key to maximizing profits. Let's figure out the issue of short-term vs long-term rental Dubai.

Before choosing between short-term and long-term rentals, it is important to understand the key features and legal requirements of each model.

Short-term rental (daily)
This is a model where the property is rented out for short periods of time, from one night to several weeks. Most often, we are talking about fully furnished apartments listed on platforms like Airbnb, Booking.com, and similar services. Popular among tourists, business travelers, and digital nomads.

Rules:
To rent out a property for short terms in Dubai, the owner (or the management company) must obtain a license from the Department of Tourism and Commerce Marketing (DTCM).

There are two ways:

• An individual can obtain a permit for only 1 property.
• A management company can manage several properties on behalf of the owners.

You must also comply with quality and safety standards and regularly pay a tourist tax.

Long-term rental
This is a classic model where the property is rented out for a period of 6 months or more.
These properties are usually unfurnished, and residents arrange the space themselves to suit their needs. This is the preferred format for expats, families and workers moving to Dubai for a long term.

Rules:
Long-term leases are regulated by the Dubai Land Department (DLD).
Contracts are issued through the Ejari system, which provides legal protection for both parties.
No need for a DTCM license.
Both models have their advantages and require different approaches to management. The choice rental strategy Dubai depends on the investor's goals, the type of property and its location.

Property owners in Dubai face a strategic choice: rent out their properties on a daily basis or sign long-term contracts. Let's look at a comparison of the key factors for both strategies.

Short-term VS long-term rental Dubai

Here is a comparison of ROI for the same 1 bedroom apartment in Dubai Marina.

Short-term rent (daily)
Average price per night: 500 AED
Average occupancy: 70% (approx.21 nights per month)
Gross income: 10,500 AED / month
Expenses (management, cleaning, utilities): approx.3,000 AED
Net income: 7,500 AED / month

Pros:

• Higher income with good demand
• Flexibility: you can change the price, block dates, rent it yourself or through a management company
• Ability to respond to market trends (exhibitions, holidays, seasonal tourist flow)

Cons:

• Requires more time and attention
• Dependence on the season
• Mandatory license from DTCM and regular monitoring of the quality of housing

Long-term rent
Monthly rent: 7,000 AED
Expenses (maintenance, service fee): 1,000 AED
Net income: 6,000 AED / month

Pros:

• Stability: guaranteed income for the entire rental period
• Minimal effort after signing the contract
• No tourist license (DTCM) required - only registration through Ejari

Cons:

• Less flexibility - you cannot raise the price before the end of the contract
• Less flexible strategy if the market starts to rise sharply
• Lower income compared to short-term rentals

If the goal is to maximize Dubai property income and you are ready to manage the property or transfer it to management - short-term rentals win. If you value passivity and stability, it is worth choosing long-term rentals.

Investing in real estate is not only about choosing an apartment, but also about choosing an approach to renting it out. rental strategy Dubai. Different owners have different goals and levels of involvement. Below are three typical profiles and the most suitable strategies for each of them:

«Passive Investor»
Who is he/she: Lives abroad, views real estate as a way to preserve capital.
Goal: Receive a stable income with minimal involvement.
Choice of strategy: Long-term lease.

Why:
No need to manage the property on a daily basis
A 12-month contract ensures stability
No need to obtain a tourist license
Suitable for turnkey agency rental

«Maximizer»
Who is he/she: Active investor, fully involved in management. Can own several properties.
Goal: Extract maximum profit, especially during peak seasons.
Strategy choice: Short-term rental.

Why:
Higher income due to flexible prices and high occupancy
Uses dynamic pricing
Constantly monitors reviews, ratings, quality of service
Manages personally or with minimal assistance

«Hybrid landlord»
Who is he/she: An investor with moderate involvement, ready to entrust management to professionals.
Goal: Balance between profitability and stability.
Strategy choice: Hybrid model.
How it works:
In winter (high season) — short-term rental at increased prices
In summer (low season) — long-term rental to avoid downtime

Cooperation with a management company, for example, COLIFE, which adapts the strategy to the season and the investor's goals.

Which profile did you find yourself in or which would suit you?

Choosing between short-term and long-term rentals is not a question of «which is better», but what is best for you!

• If you are willing to actively participate in the process and strive for maximum profit, short-term rentals can offer higher income, especially during the tourist season.
• If you value stability, passivity and minimal effort, long-term rentals will provide predictable income and less hassle.

It is important to understand: there is no universal solution. It all depends on your expectations, attitude to risk and level of involvement.

The good news is that the rental market in Dubai is flexible. Many investors successfully combine both models, switching between short-term and long-term rentals depending on the season, demand and market conditions.

Before choosing a rental strategy, property owners should answer several important questions:

How much time am I willing to devote to management?
How much risk am I willing to take for the sake of potentially higher returns?
What level of income do I expect — stable or maximum?
Short-term rentals can generate more income, but require serious involvement: constant management of reservations, communication with tenants, cleaning, quality control and the use of pricing tools.
This is especially important when scaling up — managing several properties without professional help becomes a real job.

Long-term rentals, on the other hand, offer a more predictable model with minimal involvement — a great choice for passive investors and those who value peace of mind.
Want the best of both worlds? COLIFE helps property owners in Dubai balance daily and long-term strategies for maximum ROI. Explore our hybrid rental management solutions today.

Finding the right apartment in Dubai can transform your everyday experience as a working professional. It’s not just about location or rent — it’s about finding a space that fuels your productivity, comfort, and well-being.

Save time, skip the stress, and find the perfect fit with Colife.