The European Union and the United Arab Emirates Together with the Middle East, especially Dubai, becoming a popular tourist destination for people who want to explore this exceptional region of the world or even make the most of their stopover on their way into Europe, landowners are presented with a chance to capitalize on the vacation house lodging market. Recently, within Dubai mainly, we’ve observed a rise of Owners going into the holiday home market, which not just generates competition for the resort business, but also provides tourists with a more extensive choice of lodging for the length of their stay.
The capability for a Holiday Home operator to maintain a license and handle the performance of the property for a vacation home on behalf of the homeowner permit the owner to realize a higher return on their investment, along following a higher regulatory and administrative compliance as per the local governmental requirements.
- Check-in and check-out procedure with guests
- The cleaning and regular housekeeping of their house
- Arrange continuing upkeep and repair of their home.
The home owners when appointing a property management company to handle their home on their behalf, must keep in mind below few vital aspects while picking an operator for vacation home rentals management.
Preparing Your Vacation Home
The essential rating of the house ought to be agreed from the beginning. If the property has to be brought up to a particular standards, it is important to discuss and agree on the responsibility of the refurbishment and payment of all related costs. Based upon the industrial agreement with the operator, the homeowner may either refurnish the home as per the agreed changes and deliver to the operator or may pay the operator and request to make the changes at a service fee. While there are many different fee arrangements which can apply to the direction arrangement, average fee arrangements are a:
- Fixed management fee charges on the yields generated
- Payment of rental yields to the landlord after each month of successful rental, post all the fees and charges deductions.
Maintenance and Repair
Manage my property contract has to be agreed and signed on to allow the operator to carry out responsibility for the upkeep and repair of the home during the length of this agreement, including the payment of related costs.
Landlord stands accountable for the routine repair and maintenance expenses. An arrangement could be made that the operator has a right to tackle the functions on behalf of the owner, without needing to acquire the homeowner’s prior approval within a certain cap on the price for the jobs.
Consideration also has to be given when the house is a flat where repairs and maintenance are undertaken and regulated by the building’s appointed FM supplier as part of their services where the owner leads utilizing service charge fee. In this regard, arrangements would have to be set in place, allowing the Operator to liaise with the FM supplier on behalf of the owner as suitable.
Right to Use Property for Personal Use
In the event of the landlord wanting to use the property for their stays in the peak and off-peak seasons during their contract with the operator, just with a month-in advance notice the home can be blocked for the landlord’s stay basis the availability. In a situation of the home being unavailable for the landlord’s stay, the operator notifies the unavailability and may offer an available alternate stay option within the portfolio.