How to establish a holiday home rental in Dubai
The tourism industry in Dubai is flourishing. The emirate boasts the busiest international airport in the world, receiving almost 15 million visitors each year, attracted by the guarantee of year-round sunshine and the prospect of experiencing some of the beautiful beaches, iconic buildings and luxurious shopping malls Dubai has become synonymous with.
While most visitors still opt to stay in hotels, the relaxation of laws around letting of private property in 2016, has fuelled a growing demand for the flexibility and economy provided by short-term rental options such as Airbnb and this now represents an established and fast-growing sector with great scope for investment.
How much can I expect to make renting a Dubai property on Airbnb?
The amount you can expect to make from a holiday rental in Dubai will depend on various factors, such as the location, size, amenities, season, and demand. Generally, the highest short term rental returns are during the peak tourism season, which runs from October to April and the areas which generate highest returns are those typically most popular among tourists, such as Dubai Marina, Downtown Dubai, Palm Jumeirah and Jumeirah Beach Residence (JBR).
On average, the nightly rate for an Airbnb accommodation in Dubai ranges from around AED 150 to AED 1,000, depending on the type of property, location, and season. However, luxury or high-end properties can command higher rates. When calculating potential returns, you’ll also need to factor in the costs of maintaining and managing your property, such as cleaning fees, utility bills, and property management fees, which can reduce your net earnings.
It’s also important to comply with the regulations set by the Dubai Department of Tourism and Commerce Marketing (DTCM) for holiday homes, which include obtaining a tourism licence, complying with health and safety regulations, and paying taxes.
How can I rent a property on Airbnb in Dubai?
In order to let your property for short-term holiday rentals, you must first obtain a permit from the Department of Tourism and Commerce Marketing (DTCM) and register as a licensee in the DTCM’s Holiday Home system.
The process is as follows:
- Register for an account on the DTCM’s online portal: You can create an account on the DTCM’s online portal by providing your personal and contact information.
- Provide your property details: Once you have created an account, you need to provide the details of your property, including the location, size, and number of bedrooms.
- Submit the required documents: You will need to upload the following documents on the portal:
- A copy of your passport or Emirates ID
- A copy of the title deed or a tenancy contract
- A No Objection Certificate (NOC) from the property owner or the master developer
- A DEWA (Dubai Electricity and Water Authority) bill or a tenancy contract that shows your name and the property address
- Pay the fee: You will need to pay a fee for the permit, which can be done online using a credit or debit card.
- Wait for the approval: Once you have submitted all the required documents and paid the fee, you will need to wait for the DTCM to approve your application. The approval process may take up to 14 days.
- Receive the permit: If your application is approved, you will receive a permit from the DTCM, which will allow you to legally rent out your property as a holiday home.
The DTCM requires you to have a separate permit for each holiday that you wish to rent so the above process may need to be repeated depending on how many units you intend to let. If you are not the owner of the property, you will also need permission from the owner in order to sublet.
How do I list my Dubai property on Airbnb?
To list your property on Airbnb, you should follow these steps:
- Create an Airbnb account: If you don’t already have an Airbnb account, you’ll need to create one. You can sign up on the Airbnb website or download the Airbnb app and follow the instructions to create an account.
- Create your listing: Once you’ve created your Airbnb account, you can create your listing by clicking on “List Your Space” and following the instructions. You’ll need to provide details about your property, such as the location, type of property, number of bedrooms and bathrooms, amenities, and photos.
- Set your pricing and availability: You can set your pricing and availability based on the demand and season. Airbnb offers a dynamic pricing tool that can help you set the right price based on market demand and other factors.
- Complete your listing: Once you’ve provided all the necessary details and set your pricing and availability, you can complete your listing by agreeing to Airbnb’s terms and conditions.
- Verify your identity: To ensure the safety and security of guests, Airbnb requires hosts to verify their identity by providing government-issued ID or other documents.
- Prepare your property: Before guests arrive, make sure your property is clean and ready for occupancy. You should also provide basic amenities such as clean linens, towels, and toiletries.
- Manage your bookings: Once your listing is live, you can manage your bookings through the Airbnb website or app. You’ll receive notifications when guests book your property, and you can communicate with them through the Airbnb messaging system.
How can Global link help?
Global Link has over 16 years’ experience working with local and global businesses, providing bespoke consultancy services for company incorporation and other business ventures in Dubai and the wider UAE.
We can help with establishing a holiday home rental and provide support throughout the whole process, assisting with all regulatory approvals and liaising with all relevant parties on your behalf.
If you need assistance with this or any other company incorporation, visa or PRO service, please get in touch with us on +971 4 553 9901 or email us at [email protected] and we will be happy to assist you.