Yearly lease or short-term? How to decide.

Most Dubai owners face the same choice: sign a yearly tenant, or let the home earn night by night as a licensed holiday home. Both can work. The right answer depends on your home, your area and how involved you want to be. Here is how to compare them honestly.

How a yearly lease works

You agree one rent for twelve months, usually paid in one to four cheques. The tenant lives in the home for the full year, so you cannot use it yourself. The rent only changes at renewal. You see the condition of the home when the tenant leaves, and any empty weeks between tenants earn nothing.

How short-term works with Rentico

Your home is listed as a licensed holiday home on Airbnb, Booking.com, Expedia, Agoda and staywithrentico.com. Prices are adjusted every day to match demand, so busy weeks, events and weekends earn more. Rentico mixes stays from 2 nights to about 4 months to keep the calendar full. You keep up to 30 nights a year for your own use, and you can leave with 60 days' notice.

What it costs

Rentico charges one management fee of 20% of booking revenue, which covers 11 services from listing to your monthly statement. Getting started has a one-time onboarding fee, which includes your holiday home permit. As the owner, you pay DEWA, internet and service charges. Be fair in your comparison here: with a yearly lease, the tenant usually pays DEWA.

How to compare, step by step

1. Write down the yearly rent you would realistically get, after agent commission and any empty weeks between tenants.

2. Next to it, write Rentico's estimated monthly payout after the 20% fee, multiplied by twelve.

3. Subtract your DEWA, internet and service charges.

4. Then weigh what the numbers do not show: your 30 nights a year, the 60-day exit, and a home that is cleaned and checked after every stay.

Which suits you

A yearly lease suits owners who want one fixed payment and no involvement at all. Short-term suits owners with a well-located, well-furnished home, or one ready to be furnished, who want more earning potential and more flexibility.

Get your own numbers

Every home is different, so Rentico does not publish guesses. Book a free visit, and Rentico will give you an honest estimate for your home.