Short Term Rental vs Long Term Rental in Dubai: Complete Guide

What Is a Short-Term Rental?

Short-term rentals in Dubai typically refer to furnished properties that are rented for daily, weekly, or monthly stays, usually for a maximum of 6 months. These are most popular with: 

• Business travellers

• New arrivals to Dubai

• Tourists and digital nomads

• Investors seeking higher rental yields

Short-term rental properties must be licensed through Dubai’s Department of Economy and Tourism (DET) and often operate like hotel apartments. Key features of short term rentals in Dubai include: 

• Fully furnished units 

• All bills included within the price

• Often listed on platforms like Airbnb and Booking.com 

• Prices fluctuate based on demand

• Often professionally managed by a short-term rentals company

What Is a Long-Term Rental?

A long-term rental in Dubai refers to properties which are rented using an annual tenancy contract and governed by Dubai’s tenancy laws. 

Long-term leases are ideal for:

• Residents and expats seeking stability

• Families moving to Dubai 

• Tenants looking to avoid seasonal price changes

Long-term rentals in Dubai typically have the following characteristics:

• Fixed pricing throughout the contract

• A lower average monthly cost than short-term rentals

• Can be unfurnished or furnished

• Usually don’t include bills in the price

• Offer strong legal protections

• Option to renew annually 

Key Differences Between Short-Term and Long-Term Rentals

There are several key differences between short-term rental vs long-term rental properties in Dubai. These include: 

Pros and Cons of Short-Term Rentals in Dubai

For investors, the advantages and disadvantages of short-term rentals in Dubai include: 

When To Choose Short-Term Rentals in Dubai

A short-term rental strategy can make sense for investors with a clear understanding of the market and a property that suits the model. 

You should consider short-term rentals in Dubai if: 

• You’ve purchased (or plan to buy) in a high-demand area like Downtown, Dubai Marina, JBR, or Palm Jumeirah

• Your goal is to maximise rental yield, even if that comes with some variability in income

• You’re comfortable taking a more active role in managing bookings, maintenance, and tenant turnover or intend to hire a professional property management company that specialises in short-term rentals.

• You want the flexibility to use the property yourself between bookings — for personal stays or visiting family

• You’re able to manage or outsource regular cleaning, marketing, guest check-in, and pricing optimisation

This model suits owners who value high returns, can handle operational complexities, and are investing in communities with consistent tourist or business travel demand. Without the right property or strategy, however, short-term rentals can become unpredictable, which is why expert guidance is essential.

Pros and Cons of Long-Term Rentals in Dubai

For investors, the advantages and disadvantages of choosing a long-term rentals strategy in Dubai include: 

When To Choose Long-Term Rentals in Dubai

A long-term rental approach is ideal for investors who prioritise stability, lower risk, and less hands-on involvement. With fixed contracts, reliable income, and fewer moving parts, it’s a strong option for those looking to build consistent returns over time.

You should consider long-term rentals in Dubai if:

• You prefer a predictable rental income

• Your investment strategy focuses on passive income and lower vacancy rates

• You want to avoid the administrative and logistical requirements of short-stay licensing, guest turnover, and marketing

• You’re not planning to use the property personally throughout the year

• You’re satisfied with steady rental yields and cash supported by long-term tenancy laws

For many investors, a long-term rental offers peace of mind. There’s less operational complexity, and with Dubai’s growing expat population, demand for 12-month leases continues to rise, especially in well-connected or family-friendly communities.

Legal Guidelines for Rentals in Dubai

Whether you opt for a short-term rental vs long-term rental, understanding the legal framework is essential:

• Short-term rentals must be licensed by the Department of Economy and Tourism (DET) and comply with hospitality regulations.

• Long-term rentals require Ejari registration, the official tenancy contract platform. All landlords must comply with RERA guidelines, especially regarding rental caps, eviction notice periods, and dispute resolution.

Conclusion: Which Option Is Best for You?

Choosing between a short-term rental vs long-term rental in Dubai is an essential investment decision. Both options offer distinct advantages depending on your goals, risk appetite, and level of involvement. If your priority is flexibility, higher potential income, and you're comfortable managing the logistics (or appointing a professional to do so), short-term rentals Dubai can be an attractive option, especially in tourist-driven or high-demand locations.

On the other hand, if you’re seeking consistent income, lower turnover, and a more passive approach, a long-term rental Dubai may better suit your needs. It provides peace of mind, strong legal protections, and long-term tenant relationships, ideal for investors focused on reliable, steady returns.

Ultimately, the right choice depends on your property, your strategy, and your confidence in navigating Dubai’s rental landscape. Whichever route you take, aligning with the right advisory partner will make all the difference.

Get Expert Advice Today

At Engel & Völkers Dubai, we help investors and property owners unlock the full potential of their real estate. Whether you're searching for the perfect property for short term rentals, considering a long term rental, or unsure which model suits your strategy, our team offers tailored advice and premium listings across Dubai’s top communities.

Contact our advisors today to explore the latest investment opportunities, get the latest market insights and expert advice.