The Pros And Cons Of Investing In Furnished Rental Apartments In Dubai

If you want to be the owner and manager of a rental apartment unit in Dubai, there are many important factors you have to consider before taking on this big responsibility. First and foremost, you have to make sure you will invest in the right property or apartment to invest in. One of the next things you have to consider is whether you will lease this apartment as is or as a furnished one.

What You Should Know About Letting A Furnished Apartment

Furnished apartments, Dubai investors should know, come with both advantages and disadvantages. Below are the pros and cons of letting furnished apartments:

PROS

Higher rent. In general, furnished properties offer higher yields compared to unfurnished ones. This is because tenants are more than willing to pay for more in exchange for convenience. In addition, short-term leases are (more often than not) not covered by traditional leases and regulations which apply to longer leases.

More flexible rental contracts. Furnished apartments are usually leased for shorter periods. As a landlord, you will enjoy ample flexibility — a huge advantage if you plan on using your apartment for vacations or other purposes.

You will have better tenants. Furnished apartments generally tend to attract better tenants. This is especially true if you own a property located in the city centre and have professionals as tenants. These tenants are less likely to damage your property.

Your property will have lower risks of being damaged. Lastly, since your tenants do not have to furnish the property and bring in big furniture, they are less likely to damage the walls of your property.

CONS

More investment is required from your part. If you want to rent out a furnished apartment, you will have to invest a sizeable amount of money from the onset to buy pieces of furniture and appliances. And this investment will not be a one-time thing. Over time, you may have to replace certain pieces inside the apartment.

High turnover rates. Furnished apartments have a higher turnover rate due to various market forces including the weather and season, the holidays, currency exchange rates, etc. This means that you will always be on the lookout for new, possible tenants.

Less potential tenants. Finally, not every tenant is on the hunt for furnished properties since many have possessions that they wish to bring with them when they move. As such, you need to be aware that your target market for your furnished space may be considerably smaller.

Before deciding to let a furnished apartment, consider the pros and cons first. In addition, take into consideration other key factors such as the space of the apartment and your budget.

About the Author:

Meredith Wilson is a property investment consultant. She recommends getting more ideas about what furnished apartments in Dubai look like on DAMAC Properties’ website.