The True Cost of Vacancy
Vacancy feels free. It isn't.
Monthly carrying costs typically include service charges for building maintenance and facilities, DEWA charges for electricity and water even at minimal usage, air conditioning which is essential even in unoccupied properties, security and maintenance, and mortgage payments if the property is financed.
Apartments in Dubai typically sell within 2-4 months. Villas often take 4-8 months or longer. Market conditions can extend these timelines significantly. A six-month vacancy easily costs tens of thousands of dirhams — money that generates no return.
The STR Alternative
Short-term rentals can convert vacancy costs into income.
Instead of paying AED 10,000+ monthly to maintain an empty property, you could be generating income while the property remains available for sale. Properties under professional management achieve 94% occupancy even with sales-related scheduling constraints. Multi-platform distribution ensures consistent booking flow.
The income often exceeds carrying costs — converting a liability period into a profit period.
Balancing Bookings and Viewings
The obvious concern is how to show a property that's occupied by guests.
Calendar management allows blocking availability around confirmed viewings. Professional systems make this straightforward. Shorter booking windows provide flexibility for viewing scheduling. Clear communication protocols between management, sales agent, and owner ensure coordination. And appropriate guest notification with reasonable notice periods protects guest experience while enabling viewings.
With proper coordination, bookings and sales activities coexist without conflict.
Presentation: Better or Worse?
Counterintuitively, STR properties often present better than vacant ones.
Short-term rentals are fully furnished to appeal to guests, which also appeals to buyers. Professional cleaning between every guest keeps properties in showing condition. Properties feel like homes rather than empty shells. And ongoing management catches issues before they become problems.
The key is professional standards. A professionally managed STR typically shows better than a vacant property gathering dust.
Compliance During Sales
Short-term rentals require DTCM licensing regardless of sales intent.
A valid holiday home licence is required, along with guest registration for every stay and tourism fee handling. Licensing can be completed in approximately two weeks — fast enough even for properties newly listed for sale.
Operating without a licence creates legal exposure at the worst possible time — when you're trying to close a sale.
Professional Management: Why It Matters More Here
Combining STR with property sales is complex. Professional management simplifies significantly.
Coordination involves managing bookings around viewings, buyer visits, and inspection requests. Flexibility means systems designed to accommodate sales-related scheduling changes. Quality control ensures the property remains showing-ready at all times. Clear communication channels exist between management, sales agent, and owner. And transparency comes through monthly statements showing income against carrying costs.
Self-managing while selling creates operational complexity most owners don't need.
When This Works — and When It Doesn't
STR during sales works well when there's no immediate pressure to sell, when the property suits short-term rental use, when the building permits holiday home operation, when income offsetting costs is valuable, and when viewings can be scheduled with reasonable flexibility.
It may not work when immediate sale is critical due to foreclosure or urgent relocation, when constant viewing access is required, when the building prohibits short-term rentals, when the property isn't suitable for guest accommodation, or when the complexity isn't worth the income generated.
Honest assessment prevents regret in either direction.
Financial Framework
The calculation is simple: monthly carrying costs minus potential STR income minus management costs equals net benefit.
If the net benefit is positive, and often significantly so — STR during sales makes financial sense. If the complexity outweighs the benefit for your specific situation, vacancy may be the right choice.
Making the Decision
Keeping a property vacant while selling is a choice, not a requirement.
Short-term rentals offer a path to offset carrying costs, potentially generate surplus income, keep the property maintained and presented, and retain flexibility for sale activities.
The right answer depends on your property, timeline, and priorities.
Explore Your Options
Considering short-term rentals while your property is on the market? An assessment can clarify income potential, coordination requirements, and whether this approach makes sense for your specific situation and sales timeline.
Look for a partner who’s proactive, transparent, and aligned with your goals.
