Want to turn your property into one of the holiday homes in Ras Al Khaimah and start generating passive income? If yes, then this guide is for you. With its booming tourism industry, RAK has become a prime tourist destination, offering thrill-packed, cultural, and relaxing escapes.
As more and more tourists are drawn to this destination, the demand for holiday homes in Ras Al Khaimah is at its peak.
If you want to benefit from this growing industry, the process is straightforward: obtain a permit, complete an inspection, and start marketing. Read ahead to learn the rules, process, fees and tips for running a successful holiday home venture.
- What Are Holiday Homes in Ras Al Khaimah?
- Reasons for Choosing RAK for a Holiday Homes Venture
- Rules for Holiday Homes Registration in RAK
- How to Register and Obtain a Holiday Home Permit in RAK
- Tips to Market, Rent Out and Generate Income
- FAQs
What Are Holiday Homes in Ras Al Khaimah?
Let’s quickly understand what holiday homes in Ras Al Khaimah are:
Holiday homes or short-term rentals are properties like apartments, villas and townhouses, registered with the Ras Al Khaimah Tourism Development Authority (RAKTDA). As an owner, you can rent out such properties to visitors for short periods and generate passive income.
Whether you’re an individual or a professional operator, you can turn your house into a profitable holiday home.
Reasons for Choosing RAK for a Holiday Homes Venture
Holiday homes in Ras Al Khaimah are increasingly becoming a new trend, opening paths to a profitable venture. Here is why you should choose RAK for setting up your holiday homes business:
- Jebel Jais: Jebel Jais, the highest peak in the Emirates, is a great tourist attraction all year long.
- Beaches: Serene beaches, making it a sought after staycation spot.
- Low-Priced Properties: Compared to other big cities, RAK is affordable for purchasing property.
Rules for Holiday Homes Registration in RAK
The RAKTDA Tourism Licensing and Classification Department has established policies to regulate holiday home ventures. Under these regulations, holiday home owners must abide by some rules. Let’s first understand the RAK holiday rental requirements:
1. Eligibility of Residential Units
First, it is important to note that RAKTDA lists certain housing types that can be registered as holiday homes. This includes the following properties:
- An apartment in a mixed-use or residential building
- A townhouse
- An independent villa
- A room within a unit (Room sharing is permitted under this regulation)
Please note that some commercial properties cannot be listed as holiday homes. For more information on residential unit conditions and specifications, visit the RAKTDA official website.
2. Locations in RAK Eligible for Holiday Homes
Eligible properties in any location in RAK, including free economic zones, can be turned into holiday homes.
However, it is best to buy properties in RAK areas that are in demand throughout the year. Some top picks include Al Marjan Island, Al Hamra Village, and Mina Al Arab.
3. Tenants Using a Rented Home for Holiday Rentals
Are you a tenant interested in turning your rented house into a holiday home in your absence? The good news is that RAKTDA permits authorised tenants to obtain a holiday home permit.
However, tenants must seek permission from the landlord and obtain a No Objection Certificate (NOC).
How to Register and Obtain a Holiday Home Permit in RAK
Registering a holiday home and obtaining a permit is no longer a hassle. RAKTDA has introduced an electronic Holiday Home Registration System. Using the electronic portal, individual owners and professional operators (companies) can register their properties as short-term rentals.
Everything is available on a single portal from registration to permit issuance and inspection, making the process convenient. Let’s look at the steps to register your holiday home in RAK:
Required Documents
Gather the following documents before starting the process:
Individual
- Copy of passport
- Copy of Emirates ID
- Unit title deed
- Tenancy agreement (Individual tenants must submit a registered tenancy contract in RAK, attested by the municipality. It must outline the subletting clause, permitting the tenant to lease the property under the holiday homes policy.)
- FEWA bill or a similar document with the FEWA account number.
- NOC from the developer (only if the unit is under the management of the developer)
Professional Operators (Company)
- Copy of Emirates ID and passport of the responsible manager (Authorised Signatory)
- Unit title deed
- An agreement signed by the owner authorising the professional operator to turn the property into a holiday home.
- FEWA bill or any other document bearing the FEWA account number.
- NOC from the developer (only if the unit is under the management of the developer)
Permit Application Process
Individuals and professional operators can follow these steps to obtain a holiday home permit in RAK:
- Go to the holiday homes RAK official website (www.holidayhomesrak.com)
- Click ‘Create Account’.
- Select ‘Registration Type’ from ‘Individual or Operator’.
- Fill in the ‘Individual or Operator’ details.
- Individual Details: Name, Nationality, Emirates ID Number, Passport Number, Email Address, Username, Password and Mobile Number.
- Operator Details: Company Name, Manager Name, Manager Nationality, Company Licence Number, Company Licence Expiry Date, Company Username, Password and Mobile Number.
- Click ‘Register’.
- Pay the AED 100 registration fee and complete the process.
- The system will email a registration link
- Follow the link, it will redirect you to a dashboard.
- Click ‘Add New Unit’.
- Fill out the form providing property details and attach the required documents.
- Submit the form.
RAKTDA will review the application within 48 business hours. If the application is approved, applicants will receive an email with a link to proceed with the permit payment. If rejected, the email will state the reasons for rejection.
Finally, you should pay the fees, then download and print out the permit. With this, RAKTDA will assign a team to inspect your unit.
Property Inspection
RAKTA team will inspect your unit based on the following parameters:
- 24/7 security
- Quality furniture
- Waste management system
- Parking spaces
- Property maintenance system
- Following the building guidelines
- Adhering to local regulations
After inspection, you can view the report on the same dashboard.
Fees
Applicants must pay the following fees to register holiday homes in Ras Al Khaimah:
- One-bedroom: AED 300
- Two-bedroom: AED 600
- Three-bedroom: AED 900
- Four-bedroom or more: AED 1,200
- Standard holiday homes classification: AED 50
- Luxury holiday homes classification: AED 50
Note: Individuals or professional operators must collect a tourism charge of AED 15 for every unit per night. Once collected, pay the fees to the authority.
Licensing Queries and Complaints
For any queries or complaints regarding RAKTDA licensing service, email at: info@holidayhomesrak.com
Tips to Market, Rent Out and Generate Income
Like a holiday home business in Dubai, establishing a profitable venture in RAK demands a few key essentials. Here are some tips that will help you during starting to rent your property as holiday home in Ras Al Khaimah:
1. Identify Your USP
Start by identifying your unique selling points – anything that differentiates you from your competitors. This could include:
- Prime location
- Close to tourist attractions
- Eco-friendly architecture
- Luxury facilities such as private pools, a jacuzzi or a rooftop terrace
2. Hire a Professional Photographer
Next, hire a professional photographer who understands market dynamics, customer mindset and home styling.
This step is a deal breaker, because most renters make their decisions in the first few seconds of viewing a property. The photographs should not just show the holiday home—they should sell your unique experience.
3. Set Competitive Rental Rates
It is equally important to set competitive rental rates—neither too low nor too high. You can decide the prices based on factors like location, property size, management fees, amenities, and competitor rates.
4. Advertise Your Holiday Home
Reach out to the potential guests using the right platforms, such as social media and high authority property sites.
5. Go the Extra Mile to Support Tenants
Ensure that the tenants have a positive experience during their stay. Support them, offer discounts and go the extra mile to solve their issues. This builds your reputation in the market, which ultimately contributes to business growth.
FAQs
Turning your house into a holiday home is simple: visit the Holiday Home registration portal, create your account and submit the form. If your application is approved, complete permit fee payment and download your holiday home permit.
Some of the best areas for holiday homes in Ras Al Khaimah are Al Marjan Island, Al Hamra Village and Mina Al Arab.
These were all the details about holiday homes in Ras Al Khaimah. Be sure to abide by the rules and stay updated on new policies. Turn your house into a passive income-generating holiday home today!
If you want to buy property to use as a holiday home, browse the list of apartments for sale in Ras Al Khaimah.
