What maintenance costs should I expect for a short-term rental in Dubai?
When managing a short-term rental in Dubai, you can expect a variety of maintenance costs that are necessary to keep the property in excellent condition and ensure guest satisfaction. Here's a breakdown of typical maintenance costs you should plan for:
Annual Maintenance Fees
Building Maintenance: If your property is in a building or gated community, there is an annual service charge typically ranging from AED 3 to AED 30 per square meter. This covers common areas like pools, gyms, security, and landscaping.
Villa Maintenance: For villas, maintenance costs may vary depending on the size and amenities (like private pools or gardens). Villas typically have higher maintenance costs than apartments due to the larger space and more complex facilities.
Cleaning and Turnover Costs
Short-term rentals require frequent cleaning between guest stays. Hiring a professional cleaning service in Dubai can cost AED 100 to AED 400 per visit, depending on the size of the property. If you manage a high turnover rate, this can quickly add up.
Utility Bills
Utility costs for short-term rentals include electricity, water, and air conditioning, which are typically AED 160 to AED 180 per month for an 85 sqm apartment. Since short-term rentals often come with fully covered utilities, these costs are your responsibility.
General Maintenance and Repairs
Regular wear and tear from guest use means budgeting for repairs and replacements. This includes fixing appliances, repainting, and maintaining furnishings. An easy rule of thumb is to set aside 1-2% of your property’s value annually for ongoing maintenance.
Property Insurance
Property insurance is mandatory for short-term rentals in Dubai and typically costs around AED 800 to AED 1,500 per year, covering damages caused by guests and other unforeseen events
Conclusion:
Proper maintenance budgeting is essential for a successful short-term rental. You should plan for annual fees, cleaning, utilities, and unexpected repairs to maintain the property's appeal and ensure high guest satisfaction, which in turn leads to better reviews and higher occupancy rates.