Short-term Online Rentals: How Do they Affect Property Management Companies in Dubai?18 May 2018
The digital world has brought about many changes including the highly convenient online rental sites and apps such as Airbnb, which experts say disrupt the processes of property management companies in Dubai.
What is Airbnb and how are these online services affecting the property management industry?
Online Short-term Rentals
Online rental sites and apps have been quite popular lately. This is due to the short term homestays or other rental property services they provide, depending on the owner’s terms. Such services are offered by the well loved site Airbnb and its competitors including FlipKey, HomeAway, VayStays and more.
These sites allow people to book their rental property online, which many prefer over the traditional way of personally dealing with landlords or property managers themselves. But what exactly are short-term rental listings?
These listings let people rent whole houses, a room or shared rooms online for their short term use for days or weeks, as determined by the owner. Many of the properties listed on these sites are usually available all-year round because of the number of investors in different areas staying for a short time.
Property owners are choosing to list their properties on online rental sites because of these factors:
- Declining real estate industry causing a decrease in income from the rental market
- As an alternative source of income
- To achieve greater rental yields
How are Short-term Rentals Affecting Property Management?
Consumers value the services that online rentals offer, especially when it comes to vacations and tours. Unfortunately, these services do have a negative effect on the Dubai property management industry.
- More people are choosing to book their rentals online, causing property owners to withdraw from property listings and crossing over to online rentals.
- Rise in real estate prices are expected because people are willing to pay more to book online.
- A marked decrease in long-term property listings is felt as the shift to online rentals continue.
While online short-term rentals make it a little more challenging for Dubai property management companies, it is up to these firms to optimize their services and the properties under them so they can be on par with the competition.
Changes in consumer preference cannot be stopped. But the property management industry can compete and make consumers choose their services. One way is by integrating technology into the rental management process, which is what Zawaya Property is doing.
Check out Zawaya Property now and see what quality services are all about. You won’t need to list your property online if you have this property optimiser on your team.