Invest in dubai
real estate

You are committing to a minimum of 12 months rent with a 3 month notice period before the end of the fixed term.

Whilst unlikely, as Dubai only locked down once, the rent and bills are still to be paid. We would try to negotiate with the landlords however the worst case is full payment of all financial commitments.

Each property will have a different level as location, size and fit out all determine the results. We would encourage all investors to run their own due diligence. Our data is extracted from multiple reliable sources such as AirDNA and our own running costs to give a good estimate of the ongoing revenue and run costs however as a sophisticated investor we expect you to do your own before making a decision and we can’t be held responsible for any negative variations on our projections.

Every deal will be different however the standard setup costs are as follows. 

• Your first rent cheque which will vary from property to property. In Dubai landlords ideally want 1 rent cheque for the year paying up front. Recent times have seen landlords become a bit more flexible however typically you would be looking at paying your rent quarterly.
• Utility companies require deposits on file for the term of your agreement with them. Typically 2000 dhs plus an admin fee to set them up. 
• Naturally you will need to set your property up with the correct furniture and interior design to attract guests to book. We take care of all of this with our interior design team and will confirm the price before any work commences. Fit outs can range upwards of 10,000 dhs typically depending on the property size. 
• Finally you will need insurance and DTCM licences to trade. Again we take care of all of that for you on the ground and invoice you for payment. Costs range from 360dhs up over depending on the property size. 

Like any short term rental property all bills need to be include for our guests so the typical operational are air conditioning, water, electric, Wi-Fi etc. 

The day to day operational costs will consist of items such as linen, welcome packs, cleaning etc. 

These costs are billed to your property every month and deducted from your payout each month.

Absolutely not, we charge 10% plus VAT (currently 5% in the UAE) on the gross revenue. If we over perform we collect our fee and the lion share of the revenue goes to yourself.

We have been operating here since 2021 and have seen the highs and lows of the seasons which combined together make a profitable venture. Across 12 months you will experience low months from mid June through to the end of August as the temperatures soar. Peak month range from around mid October through to the end of March. 

Dubai is the 4th most travelled place in the world and with their 2040 plan we are confident it will move up this list. Dubai is expanding by the day and their vision is incredible. We are confident the short term rental game here is going to be strong for the long term.

In Dubai there are several markets we target:

1. Expats relocating to the emirate for work
2. Tourists looking to holiday here in Dubai 
3. Corporate professionals in the area for a few months at a time on short term work projects.

No, whilst many inexperienced investors believer rental arbitrage is illegal it is quite the opposite. We get full permission from all landlords to operate as a short term rental operator and everything we do is transparent with them from the start. Sub letting is allowed with the landlords permission. 

Luke Stays will effectively run the operations for you on a monthly basis and collect all your revenue whilst paying out all your ongoing running costs. 

At the end of the month you will be given a statement which shows what we generated versus the costs paid on your behalf, deduct our management fee and then you will receive the net difference to pay your rent, all other bills will be deducted. 

Yes, you will get access to our booking platform where you can see the performance of your properties in real time.

All money received into Dubai must be for the exact AED amount on your invoices. 

Any monies paid to your nominated account will leave our bank account in AED and the rate will be whatever our bank charges. International payment fees will be deducted from the investor. 

Due to the nature of the way the contracts have to be set up personal guarantees are required from every investor. The liability will be for the full contract amount, both fixed and variable costs.

Whilst we do everything in our power to prevent guests’ issues it would be a lie to say nothing is going to happen. However our experience has helped us protect the financial side and limit the damage.
On the plus side the malicious damage element is far less in Dubai than other locations we operate in. In the unlikely event that we can not recoup the damage from the guest this will be billed to the investor.

Most landlords will want to continue working with us for many years to come. As such we expect to renew the tenancy agreement for a further 12 months. If you do not wish to do so then you must notify us 3 months before the renewal date.

Once we have your commitment and funds we will agree on everything on your behalf. It can take us approximately several weeks to get your property live and trading.

Check out our deals page and make an enquiry or reservation on any of the deals you are interested in.