Why Consider STRs Before Selling
Carrying costs continue during sales, covering service charges, utilities, and maintenance. Sales timelines are unpredictable, often stretching to months for apartments and longer for villas. Vacancy generates zero income against ongoing expenses. But STR income can offset or exceed carrying costs.
From a practical perspective, furnished and maintained properties often show better than empty ones. Regular use prevents deterioration. And professional cleaning keeps property in showing condition.
The opportunity exists. Whether to pursue it depends on your specific circumstances.
Two Approaches: Short-Term vs Medium-Term
Short-term rentals spanning days to weeks offer maximum revenue potential but higher guest turnover and more scheduling complexity for viewings. They require responsive calendar management.
Medium-term rentals of 1-3 months generate lower revenue than short-term but involve fewer turnovers and easier viewing coordination with less scheduling friction.
The trade-off is clear: short-term maximises income but complicates viewings, while medium-term simplifies coordination but reduces revenue. Choose based on sales urgency and viewing flexibility needs.
Presentation Impact: Help or Hindrance?
STRs can help presentation because properties are professionally furnished and styled, regularly cleaned and maintained, have a lived-in warmth versus empty coldness, and issues are caught and fixed between guests.
STRs can hinder presentation when guest belongings are present during stays, coordination challenges affect viewings, or poor management creates condition issues.
Management quality is the determining factor. Professional management enhances presentation. Poor management creates problems.
Coordination: Making Bookings and Viewings Coexist
For calendar management, block dates for confirmed viewings. Professional systems make this straightforward. Maintain flexibility for short-notice access. Accept booking lengths that allow viewing windows.
For communication protocols, establish clear processes between management, agent, and owner. Enable rapid response to viewing requests. Implement guest notification when viewings are needed.
For quality control, ensure the property remains showing-ready at all times. Allow no compromise on cleaning or condition standards. Maintain professional presentation regardless of recent occupation.
With proper coordination, the conflict between bookings and viewings is manageable.
Compliance: Non-Negotiable
STRs during sales still require full DTCM compliance including valid holiday home licence, guest registration for every stay, and tourism fee handling. Licensing typically takes about two weeks — fast enough even for newly listed properties.
Compliance issues during a sales process create unnecessary complications. Operating correctly from the start prevents problems.
When This Strategy Works
The strategy is a good fit when there's no immediate sales pressure, the property suits guest accommodation, the building permits holiday home use, income meaningfully offsets carrying costs, and viewing scheduling can be flexible.
Strong indicators include prime location with good STR demand, professional management available, sales timeline expected to be months rather than weeks, and owner comfortable with coordination complexity.
When This Strategy Doesn't Work
The strategy is a poor fit when there's urgent need to sell due to foreclosure or immediate relocation, when constant viewing access is required, when the building prohibits short-term rentals, when the property is unsuitable for guest use, or when complexity outweighs income benefit.
Warning signs include a very motivated buyer already in discussions, agent recommending vacant presentation, building rules unclear or restrictive, and management quality concerns.
Sometimes vacancy is the right choice. Recognise when it is.
Professional Management: Essential Here
Combining STRs with property sales is complex. Professional management provides coordination of booking management around sales activities and viewing scheduling integration, quality through property maintenance to showing standards and consistent guest experience, and administration including compliance handling and clear communication with owner and agent.
Self-managing during a sales process multiplies complexity unnecessarily.
Financial Framework
The calculation is straightforward: monthly carrying costs minus monthly STR income potential minus monthly management and operating costs equals net monthly benefit.
If positive and significant, the strategy makes financial sense. If marginal or negative, vacancy may be simpler.
The Decision
STRs during sales can be valuable, or can create unnecessary complication.
The right approach involves evaluating your specific timeline, property, and priorities, assessing management quality and coordination capability, calculating realistic financial benefit, and deciding based on your situation rather than general assumptions.
Explore Your Options
Considering STRs while preparing to sell your Dubai property? An assessment can clarify income potential, coordination requirements, and whether this strategy makes sense for your specific situation and sales timeline.
Look for a partner who’s proactive, transparent, and aligned with your goals.
