The demand for short term stays in Dubai is getting higher every day. This is due to the growing number of businesses and holiday travellers to the city.
If you own a property and want to increase your income, then how about taking advantage of this type of rental? To help you take the first step, this guide includes all the details regarding short term rentals in Dubai.
1. What Is a Short Term Rental in Dubai?
Short term rental is a type of leasing for a short period of time like a day, week, or month. It’s not like the annual rentals which target people with long term residential goals.
This type is usually chosen by people who are coming 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.
That’s why it as rentals for the short term known as holiday homes in Dubai.
Moreover, according to short term rentals law in Dubai, as a landlord you can’t rent a part of the property; it should be entirely rented.
2. What Are the 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.
3. What Are the 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 a holiday home as per DTCM rules.
4. How Can You Get a Permit for Short Term Rentals in Dubai?
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 licence 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 then 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 and DEWA including your full name.
5. How Much Is the Cost of a DTCM Permit?
The average cost of obtaining a permit from DTCM is AED 1,520/year.
6. What Is the Maximum Number of Permits for One Landlord?
As a homeowner you can apply for a DTCM permit for up to 8 units. In case you want to apply for more you will be asked to submit a trade license and apply as a professional operator.
7. Do the DTCM Permit Fees Differ from One Unit to Another?
Yes, it differs. It’s not only about the type but also according to the unit’s number of rooms.
8. How Much Is the Permit Fee for Each Property Type?
The average permit fees for short term rental of villas and apartments 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
9. What Is the Tourism Dirham?
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.
10. How Is the 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 of each month to the DTCM by the 15th of the upcoming month.
11. How Much Is the Tourism Dirham?
The tourism Dirham fees per night and per room are as follows:
- Standard: AED 10
- Deluxe: AED 15
12. How Can You 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; it guarantees your safety and the visitors’ too.
FAQs
1. Are Short Term Rentals Allowed in Dubai?
Yes, it’s allowed. Short time rentals in Dubai are a great option and you have different options across the city.
2. Can You Rent per Month in Dubai?
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.
Many people visit the city either for business or vacation, making short term rentals in Dubai a good investment dea to get advantage of your unused property. We hope this detailed guide helps you in taking such a step.
