In the dynamic world of Dubai real estate, the line between a quick weekend getaway and a yearly lease is changing. More travelers are looking for stays that last 30 days or longer. This trend is driven by remote work, corporate relocations, and families renovating their own homes.
For property owners, targeting the "monthly" segment offers a profitable balance. It provides more stability than daily rentals while retaining the flexibility that standard yearly leases cannot offer. This guide explores how to attract quality long-stay guests and optimize your holiday home for this growing market.
Why Target Long-Stay Guests?
While short stays (1-7 nights) can generate high nightly rates, monthly bookings bring easier management. Hosting a guest for 30 to 90 days significantly reduces the workload for property owners and management teams.
Reduced Operational Overhead
Every time a guest checks out, there are costs involved. These include deep cleaning, linen replacement, restocking amenities, and administrative time. A monthly guest requires only one check-in and one check-out per month. This reduction in logistics often leads to higher net margins, even if the daily rate is slightly lower.
Filling the Summer Gap
Dubai is famous for its winter tourism, but the summer months can be quieter. Long-stay guests are often residents or workers who are less seasonal than tourists. Positioning your property for monthly rentals is an excellent strategy to maintain high occupancy during the hotter months when tourism dips.
The Regulatory Landscape: DET and Tourism Dirham
Understanding the rules set by the Dubai Department of Economy and Tourism (DET) is critical. Here are the specific regulations that impact monthly holiday rentals.
The Tourism Dirham Cap
A major selling point for guests booking long stays is the cap on the Tourism Dirham fee. This fee is applicable only for the first 30 consecutive nights of a stay. If a guest books for 60 days, they do not pay the Tourism Dirham for the second month. Highlighting this cost-saving benefit in your listing description can help convert inquiries into bookings.
Guest Registration and Renewal
Just like daily tourists, monthly guests must be registered in the DET portal. Strict rules apply:
- Immediate Registration: You must register the guest within 24 hours of check-in, regardless of the length of stay.
- Document Expiry: Guest registration documents are typically valid for a maximum of three months. If a guest extends their stay beyond this period, you must renew the registration in the system before it expires to avoid fines.
Pricing Strategies for Monthly Stays
Pricing a unit for a month is different from pricing it for a weekend. If you simply multiply your high-season nightly rate by 30, the total will likely be too expensive. Conversely, pricing it too low leaves money on the table.
The Volume Discount Model
Most successful hosts offer a discount of 20% to 40% off the aggregate daily rate for monthly bookings. This discount acts as an incentive for the guest to commit to a longer block of time, guaranteeing you 100% occupancy for that month with zero gaps.
All-Inclusive Pricing
Unlike a yearly Ejari contract where the tenant pays DEWA (utilities) and internet separately, monthly holiday rentals are expected to be all-inclusive. Your price must cover:
- Electricity and water (DEWA)
- AC/Chiller fees
- High-speed Wi-Fi
- TV packages
- Building service charges
When calculating your net income, always factor in slightly higher utility usage. Guests on holiday contracts tend to use air conditioning more liberally than long-term tenants paying their own bills.
Who Are Monthly Guests?
Understanding who books these stays helps you tailor your property to their needs.
- Corporate Relocations: Professionals moving to Dubai often rent a holiday home for 1-3 months while they process their residency visas and look for a permanent apartment.
- Digital Nomads: Remote workers who spend a few months in different cities. They prioritize fast internet and a comfortable workspace.
- Home Renovators: Local residents who need a fully furnished place to live while their own villa is being refurbished.
- Neighborhood Explorers: People considering buying property in an area (like Dubai Marina or Palm Jumeirah) who want to test the lifestyle first.
Equipping Your Home for the Long Haul
A guest staying for three days needs a bed and a coffee maker. A guest staying for three months needs a home. To attract high-quality monthly tenants, consider adding these amenities:
- Dedicated Workspace: A proper desk and ergonomic chair are essential for remote workers.
- Kitchen Inventory: Ensure the kitchen is fully stocked with pots, pans, food storage containers, and cooking utensils. Long-term guests cook more often than they dine out.
- Cleaning Equipment: Provide a vacuum cleaner, mop, broom, and laundry rack. While you may offer housekeeping services, long-stay guests often prefer to do light cleaning themselves.
- Storage: Clear out owner belongings from wardrobes. Guests with 30 days of luggage need ample space to unpack.
Security and Screening
Even though monthly stays feel like tenancies, they are legally short-term rentals. You do not sign a RERA tenancy contract; the booking is governed by the holiday home rental agreement.
Security Deposits
It is advisable to collect a higher security deposit for monthly stays compared to short stays. This protects you against potential damage or excessive utility consumption. Ensure your management company handles the holding and refunding of these deposits professionally.
Flexibility for Owners
One of the biggest advantages of the monthly model is flexibility. Unlike an annual tenant who has specific rights to renew under RERA, a holiday home guest has a fixed end date. If you decide to sell the property or use it yourself, you are not locked into a long-term contract that is difficult to terminate.
If you are unsure about the best strategy for your property, contact us to discuss how we can tailor a management plan that suits your goals.
Frequently Asked Questions
Can I switch from daily rentals to monthly rentals easily?
Yes. The beauty of the holiday home model is that you can mix strategies. You might prioritize daily rentals during the peak winter season (December-January) for maximum revenue, and switch to monthly pricing during the summer to ensure stability.
Do monthly guests pay the housing fee on their DEWA bill?
No. In a holiday home arrangement, the DEWA bill stays in the owner's name. The owner pays the bill, but the cost is factored into the rental price charged to the guest. The guest does not register for DEWA.
What happens if a monthly guest refuses to leave?
Because the guest is not on an Ejari contract, they do not have the same tenancy protections as a yearly resident. However, situations can be complex. Working with a professional management company ensures you have legal support and robust contracts in place to handle overstays.
Is it better to rent yearly or monthly?
Yearly rentals offer passive income with lower involvement, but returns are generally lower and you lose access to the property. Monthly holiday rentals typically generate 20-30% higher returns than yearly leases and allow you to inspect or maintain the property more frequently.
Conclusion
Monthly holiday rentals offer a sophisticated way to yield high returns from your Dubai property without the volatility of daily bookings or the rigidity of yearly contracts. By understanding the needs of long-stay guests—from pricing psychology to practical amenities—you can attract reliable tenants who treat your home with respect.
Ready to see how much your property could earn with a hybrid rental strategy? Get a free estimate today and let LUXE Vacation Homes handle the details.