A Guide to Short-Term Rental Operations in Dubai
To legally operate a short-term rental in Dubai, homeowners must first register themselves with the authorities. Subsequently, they need to acquire the necessary permit to designate their property as a holiday home. These processes are facilitated through the Department of Economy and Tourism (DET)’s online platform.
Registration and Permit
Short-term holiday rentals are generally prohibited within hotel and apartment-hotel structures. Long-term holiday rentals may be available in select hotels, subject to individual developer policies. Residential villas intended for short-term rental must be situated within a gated community consisting of at least four villas.
To begin, you must register as a private property owner on the Department of Economy and Tourism (DET) online portal. Subsequently, you’ll need to acquire a permit through this platform. The DET is the governing body for short-term rental agreements within Dubai.
Registration Procedure
To register, please follow these steps:
- Sign Up as a private owner and visit its holiday homeportal
- Please complete the application form
- Upload your Emirates ID or a photo of your passport
- Submit the application
- Upon successful application review, you will receive an email containing a link to the payment portal. A registration fee of AED 1,520 (USD 414)* is required. You can conveniently pay this fee using a credit card or any debit card approved by the Smart Government platform.
- Account activation will occur within one business day of payment receipt.
*fee amount as of September 2023
Permit Application and Approval
To operate your property as a holiday home after registering as a private owner, you must acquire a permit. This process is managed within the New Holiday Homes Permit Issuance section. Your property will be classified as either ‘standard’ or ‘deluxe’ based on the amenities you list on the provided checklist.
Homeowners are limited to registering a maximum of 8 units.
Please submit the following documentation:
- A copy of the title deed*
- Please authorize this using the approved DTCM form.
- Please submit a copy of either your Emirates ID or your passport.
- Current bill from the Dubai Electricity & Water Authority (DEWA) (less than 3 months old)
*If you don’t have a title deed, you may submit a Sale and Purchase Agreement (SPA) alongside either a Payment Completion Certificate or a letter of clarification from the developer or building owner(s).
To obtain a permit for your holiday home, follow these steps:
- Log into the Holiday Homes portal.
- Click “Add a unit” and enter the required property details.
- Submit the application with all required documents attached.
- Within a single business day, applications are reviewed. The agreement will be uploaded to your dashboard and made accessible for self-classification as soon as it is received.
- Upon successful submission of your self-classification and payment of the associated fees, your unit will be approved.
A mandatory service fee applies, varying based on the number of bedrooms in your unit. This fee includes AED 300 (USD 82) per bedroom, plus a AED 70 (USD 19) charge for a Holiday Home classification certificate, alongside a required knowledge fee and an innovation fee. The total permit fee can range from AED 370 (USD 101) for smaller units to AED 1,200 (USD 327) for units with four or more bedrooms.
Annual renewal of this permit is required via the designated online portal. A minimum service fee of AED 320 (equivalent to approximately USD 87) applies, encompassing a per-bedroom charge of AED 300 (approximately USD 82).
How to Work a Short-Term Rental Property
Listing your home on rental platforms is now possible since you have your permission and are registered with the DET.
Please be advised that to comply with DET regulations, your property must be fully furnished and insured.
Short-term rental agreements typically span a minimum of one day and can extend up to a maximum of six months. The specific terms of the contract, including any renewal options, are subject to negotiation between the landlord and tenant. The contract will clearly outline the agreed-upon payment frequency and acceptable methods (e.g., cash, credit card).
A security deposit is required from all tenants. This deposit will be used to cover any damages incurred to the holiday home during their occupancy.
Guests must be checked in through the Holiday Homes portal within three hours of their arrival at the property. This is accomplished in the “New check-in” section. If guests are GCC citizens, copies of their passports or ID cards must be attached. The “Check-out” section of the same portal facilitates the check-out process.
The Dubai Tourism (DET) launched a QR Code Initiative for Holiday Homes in May 2023. This initiative mandates that all holiday home owners display a QR code at their property’s main entrance. This code provides guests and visitors with essential information, including details about the holiday home operator and contact information for the DET.
Costs Incurred by the Landlord
The section below outlines the anticipated expenses for operating a short-term rental property.
Tourist Dirham
The Tourism Dirham is a per-room, per-night charge, irrespective of guest occupancy.
Tourism Dirham information must be entered into the Tourism Dirham e-System by the 15th of each month. Payments can be made via direct check deposit or bank transfer to the department’s designated bank account. For extended stays, the fee will be calculated only for the initial 30 consecutive nights following check-in.
This option emphasizes the system or framework used to set the fee.
- Standard Holiday Home – AED 10 (USD 2.7) per room per night
- Deluxe Holiday Home – AED 15 (USD 4) per room per night
Failure to comply with the regulations for paying the Tourist Dirham could result in a penalty of up to AED 15,000, which is equivalent to four thousand US dollars.
Utilities, Maintenance Service Charge,
As the holiday home operator, are responsible for covering maintenance and service charges. Guests will be responsible for paying for utilities, internet, and appliance usage as part of their rental fees.
What are the challenges of running a holiday home in Dubai?
Operating a short-term rental in the emirate is streamlined. All necessary procedures are handled through the Department of Economy and Tourism (DET) online platform. Key steps involve registering as a private landlord and obtaining a holiday home permit. Guest check-in and check-out are also managed on the portal, simplifying the process for owners.