5 answers

Rentals

Short and Long-term Rentals

5 questions in this topic

Can I rent my Al Marjan Island property as a holiday home?

Yes. With the appropriate holiday home licence and approvals in place, property owners can rent their units on a short-term basis through platforms such as Airbnb, Booking.com, and other vacation rental channels. Many investors choose to work with professional holiday-home management companies, which typically handle licensing, guest communications, pricing, marketing, housekeeping, maintenance, and check-ins. Management fees generally range from 15–20% of rental income, depending on the level of service provided and the property type

What are short-term rental yields on Al Marjan Island?

Short-term holiday rentals on Al Marjan Island currently yield 8–10% gross, with branded beachfront residences achieving 10–12%. Once Wynn opens in 2027, short-term yields are expected to rise further, driven by millions of additional annual visitors and limited holiday-home supply on the island.

Note: If you have plans to purchase a property for short-term rental income, would highly suggest picking a property that offers some sort of management support for Holiday Homes.

Do I need a licence to operate a holiday home in Ras Al Khaimah?

Yes. The RAK Tourism Authority issues holiday home permits, requiring the property owner (or appointed operator) to register, comply with safety standards, pay tourism fees on each booking and remit Tourism Dirham. Most professional management companies handle the entire licensing process on the owner's behalf.

Should I let my Al Marjan Island property long-term or short-term?

It depends on your property type and investment goals. Long-term rentals typically provide more predictable income, lower management requirements and stable occupancy, with average rental yields of around 6-9%.

Short-term rentals, including holiday homes, can generate higher gross revenue often 20-30% more than long-term leases during strong periods but involve higher operating costs, management fees, seasonal fluctuations and vacancy risk. Net yields generally range between 8-12%, depending on occupancy levels and property type.

As a general rule, branded beachfront residences and resort-style properties tend to perform best as short-term rentals, while standard apartments and non-beachfront units are often better suited to long-term leasing. The optimal strategy depends on factors such as location, unit size, furnishing, amenities and your income objectives.

Can RAKcompare manage my Al Marjan Island property?

Yes. RAKcompare's parent company, One Broker Group (OBG), can assist with property management solutions through a network of vetted local partners. Services include tenant sourcing, tenancy contract management, maintenance coordination, holiday-home licensing, Airbnb and Booking.com listing management, guest check-in services, and regular reporting for overseas owners.

Speak with our team for tailored recommendations based on your property type, investment objectives, and target tenant profile.

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