News

Check out market updates

By
Market Trends

All About Operating Short-Term Rentals in Dubai

Dubai’s vibrant tourism sector offers lucrative opportunities for property owners to operate short-term rentals. To ensure compliance with regulations and streamline operations, property owners must adhere to specific guidelines set by the Department of Economy and Tourism (DET). This guide provides a comprehensive overview of the process, requirements, and costs associated with running a short-term rental property in Dubai.

Registration and Permit Requirements

Before operating a short-term rental, property owners must register as private owners and obtain a holiday home permit through DET’s online portal. These steps are essential to legally list and operate a short-term rental in Dubai.

Eligibility Criteria

  • Property Types: Short-term holiday homes are not allowed in hotel or apartment-hotel buildings. Residential villas must be in gated compounds with a minimum of four villas.
  • Long-Term Rentals: Permitted in select hotels depending on developer-specific conditions.

Registration Procedure

Follow these steps to register as a private owner:

  1. Visit the Holiday Homes portal and create an account.
  2. Complete the application form.
  3. Upload a valid Emirates ID or passport copy.
  4. Submit the application.
  5. Upon approval, pay a registration fee of AED 1,520 (USD 414) using a credit card or Smart Government-approved debit card.
  6. Your account will be activated within one business day of payment confirmation.

Obtaining a Holiday Home Permit

Once registered, a permit must be secured for the property to operate as a holiday home. Properties are classified as either “Standard” or “Deluxe” based on their amenities.

Required Documents

  • Title deed or a SPA with supporting documents.
  • Authorization form approved by DET.
  • Emirates ID or passport copy.
  • Current Dubai Electricity & Water Authority (DEWA) bill (not older than three months).

Steps to Obtain the Permit

  1. Log in to the Holiday Homes portal.
  2. Click on “Add a unit” and provide property details.
  3. Upload the required documents and submit the application.
  4. Review and self-classify the property upon agreement approval.
  5. Pay the necessary fees based on the number of bedrooms:
    • AED 300 (USD 82) per bedroom.
    • AED 70 (USD 19) for a classification certificate.
  6. The permit is issued within one business day and must be renewed annually.

Operating a Short-Term Rental Property

After obtaining the required permits, property owners can list their properties on rental platforms. The following operational guidelines must be adhered to:

Furnishing and Insurance

  • Properties must be fully furnished and insured.

Rental Agreements

  • Short-term rental contracts range from one day to six months.
  • Terms, renewal agreements, and payment methods are negotiated between the landlord and tenant.
  • Tenants must pay a security deposit to cover potential damages.

Check-In and Check-Out Process

  • Check-in must be completed within three hours of guest arrival via the Holiday Homes portal.
  • Attach copies of the guest’s passport or GCC ID.
  • Check-out is managed on the same portal.

QR Code Initiative

  • The DET’s QR Code Initiative requires holiday homes to display a QR code at the main entrance. This provides guests and visitors with essential property and operator details.

Costs Incurred by the Landlord

Operating a short-term rental involves certain costs:

Tourism Dirham Fee

  • Charged per room per night:
    • Standard Holiday Home: AED 10 (USD 2.7).
    • Deluxe Holiday Home: AED 15 (USD 4).
  • Payment must be reported monthly via the Tourism Dirham e-System.
  • Non-compliance can result in penalties up to AED 15,000 (USD 4,000).

Utilities and Maintenance

  • Landlords cover maintenance and service charges.
  • Utilities, internet, and appliances are typically included in the rental cost.

Ease of Operation

Operating a short-term rental in Dubai is straightforward, thanks to DET’s efficient online portal. Key procedures, such as registration, permit acquisition, and guest management, are streamlined, making it convenient for property owners to manage their rentals.

By following the above guidelines, property owners can capitalize on Dubai’s thriving short-term rental market while ensuring compliance with local regulations.

Share