With the holiday homes model landlords are able to eliminate the danger of having bounced cheques as compared to the risk with long term tenants. In 2017, legal experts in the UAE called the decision by Dubai Courts to issue fines instead of jail sentences for a range of minor offences including bounced cheques and failing to pay rent a “step in the right direction” to ensure those in lingering debt can resolve their issues. When a landlord rents their property in Dubai for multiple cheques, there is a chance that they may face a bounced cheque; especially if the economy experiences a downturn where jobs are lost or salaries are cut. As a landlord, you would be required to attain a bank report and then proceed with a police case in order to chase the tenant who may not be financially capable of recompensing the missed payment or may have left the country. As a landlord, you must attain a court order in order to access your property as it is illegal to enter a tenanted property without consent of the tenant. With the Holiday Homes model, you entirely eliminate this risk as guests pay upon checking into your property, and must do with an additional specified deposit for damages. A fundamental gain that provide landlords with peace of mind is the fact that their property will be maintained to the highest standards at all times. Prior to every check out and check in, the property is inspected for any damages, both to personal items and to the internal structure itself. As a landlord with a long term tenant, you aren’t able to ensure your property is being looked after to the standards you require. Furthermore, occupancy rates are extremely competitive when compared to long term tenancy. While rates are already higher per annum, we have experienced extremely high occupancy rates in all of our holiday homes at FAM Living. Our operations began in December 2017 and while a fall in occupancy was expected throughout the low season (summer and Ramadan), we were amazed at the high occupancy rates we witnessed during the low season 2018. At FAM Living our model considers both low season occupancy and seasonal rates in order to provide the landlord with the minimum annual rent they should anticipate. In conclusion, as compared to long term tenancy our holiday homes rentals in top localities in Dubai make the landlord up to and sometimes more than 25% on their annual income.
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