Dubai is known as the tourist hub and that too for solid reasons. Be it businesses, digital nomads or travellers, the demand for short-term stays in the city has been on the rise. That’s where the short-term rentals in Dubai come into the picture. Many property owners in this vibrant city turn their property into a short-term rental, enjoying an extra source of healthy income, thanks to the visitors’ influx.
That brings us to our main question: Do you own a property in Dubai and want to increase your income? If yes, then how about taking advantage of this type of rental? Let us help you take the first step, this guide includes all the details regarding short term rentals Dubai.
- Overview
- Benefits for Landlords
- Types of Units Eligible for Short Term Lease in Dubai
- DTCM Permit for Short Term Rentals in Dubai
- Procedure to Get a Permit
- Maximum Number of Permits for One Landlord
- Cost
- Permit Fee for Each Property Type
- Tourism Dirham in Short Term Rentals
- Tourism Dirham Tax Calculated for Short Term Rentals in Dubai
- How to Manage Your Short Term Rental Property in Dubai
- FAQs
Short Term Rental in Dubai – Overview
There is a difference between short-term rentals and long-term rentals, with both being popular choices in the UAE. Short-term rental is a type of leasing for a short period of time like a day, week, or month. It’s different from the annual rentals which target people with long-term residential goals.
This type is usually chosen by people who come on a holiday or for a specified reason for a short time. The units rented for a short term are usually fully furnished or serviced and include all the amenities such as electricity, water and internet. They are also called holiday homes in Dubai.
Moreover, according to rental laws in Dubai, as a landlord, you can’t rent a part of the property. It should be entirely rented.
Benefits of Short Term Rentals for Landlords
There are many benefits for short term lets in Dubai for you as a homeowner:
- As a landlord, you can freely choose the duration you want to rent out the property.
- You can increase your income by adjusting the rental fee according to the time of year and demand.
- You aren’t limited to a long-term contract, so you can use your property whenever you need.
- The unit won’t be consumed, causing you to pay for complete maintenance, like the case with annual rentals.
- You will avoid the hassle of tenant and landlord disputes since it’s only for a short time.
Types of Units Eligible for Short-Term Lease in Dubai
All unit types are eligible for short term rentals except hotel apartments, according to the Dubai Department of Tourism and Commerce Marketing (DTCM). Furthermore, you’re permitted to rent out your villa. However, it must be in a gated community consisting of at least four villas.
In addition, commercial villas positioned on highways can also be operated as holiday homes as per DTCM rules.
DTCM Permit for Short Term Rentals in Dubai
Apartments and villas for short term rentals must be registered and approved by DET prior to listing. Then, you are required to issue a DTCM permit for the property you manage before you start operating the units.
1. Procedure to Get a Permit
The procedures differ from the annual rentals. A short term rental of your property in Dubai needs a permit from DTCM, not Ejari. It’s also known as a license for vacation home rental in Dubai.
This process is done before starting to lease your property. Here are the steps you should follow for registration on the DTCM website to get the permit:
- Go to the “Holiday Homes” section on the DTCM website and sign up as a “Homeowner”.
- Afterwards, upload a copy of your Emirates ID or passport and fill out the document with the needed information.
- Then you should pay the individual operator fee (mentioned below).
- Now that you’ve registered, you can apply for a necessary permit for your unit.
- Now you can upload your:
- Property’s Title Deed
- DEWA (including your full name).
2. Maximum Number of Permits for One Landlord
As a homeowner, you can apply for a DTCM permit for up to 8 units. If you want to apply for more, you will need to submit a trade license and apply as a professional operator.
3. Cost
The average cost of obtaining a permit from DTCM is AED 1,520 per year. The DTCM permit fees differ from one unit to another. It’s not only about the type but also according to the unit’s number of rooms.
4. Permit Fee for Each Property Type
The average permit fees for short-term rental of villas, studio apartments and multiple-bedroom units are as follows:
- Studio/1-bedroom unit: AED 370
- Two-bedroom unit: AED 670
- Three-bedroom unit: AED 970
- Four-bedroom unit and more: AED 1,270
Tourism Dirham in Short Term Rentals
The Tourism Dirham is a type of tax which is charged in the UAE. People who stay in hotels pay it, so homeowners who are managing short term rentals should collect it too on behalf of the DTCM.
The tourism Dirham fees per night and per room are as follows:
- Standard: AED 10
- Deluxe: AED 15
Tourism Dirham Tax Calculated for Short Term Rentals in Dubai
Tourism Dirham is calculated according to:
- The number of rooms and nights, so the fee is charged per night and per room.
- The classification of the property which is either Standard or Deluxe; it’s demonstrated while registering for the permit on the DTCM website.
You should pay the total Tourism Dirham fee for each month to the DTCM by the 15th of the upcoming month.
How to Manage Your Short Term Rental Property in Dubai
There are some points you should bear in mind while managing your unit, whether for daily, weekly, or monthly rentals in Dubai. Short-term leasing precautions are as follows:
- Short term leasing your unit should have insurance that covers any damages caused to the guests, building, or property.
- In case you have an apartment, it’s preferable to inform the building or tower management in advance about the rental process.
- There’s no specified contract template by the DTCM that should be signed between you and the guest. However, you should register for every new visitor who checks in on the DTCM system.
- You must upload to the DTCM a copy of the guests’ passports or National IDs, in case they are GCC citizens.
These notes are according to DTCM to avoid any problems or risks. They guarantee your safety and that of the visitors.
FAQs
Yes, it’s allowed. Short-time rentals in Dubai are a great option and you have different options across the city.
Yes, you can rent per month in this emirate; that’s what the short term rentals in Dubai are about. It gives you the flexibility to stay for a limited period in case you don’t want to stay in a hotel.
Yes, Airbnb hosts must obtain a short-term holiday home rental permit from Dubai’s Department of Economy and Tourism (DET). The DET permit ensures that the property meets safety and quality standards.
Short-term rentals in Dubai are an excellent investment to make money out of your unused property. With many people visiting Dubai for business trips or vacations, it is a great opportunity. We hope this detailed guide helps you in taking such a step.
For more insights into UAE real estate, visit Property Finder‘s blog. If you are looking for tips to maximise your Dubai rental property income, our blogs will help you out.
