Guide to Short-Term Rental Properties in Dubai: Steps, Benefits & Process

Dubai has seen unprecedented development and growth. It has emerged as a leading hub of tourism, business and cultural activities. People from around the globe visit this metropolitan city for various reasons. Not only does it attract people because of its immense investment potential, but it also offers various employment opportunities and tourism options. 

Not all people intend to live for an extended period. A number of visitors come here for a brief period. So, they need residences for a limited time. So, they do not need long term property rental in Dubai. Short-term rental Dubai is a type of leasing property in Dubai that facilitates people who visit Dubai for a shorter period. With the number of visitors traveling to Dubai increasing over time, the demand for short-term rentals in Dubai is also growing.

What Is A Short-Term Rental In Dubai?

Most people seek short-term rental units based on their brief stay. People who come on a holiday or for a specific reason for a few days or weeks require short-term rental options. Real estate units that are rented for a short period are dubbed short-term rentals.

Properties in this domain can be rented out on a day, week and monthly basis. Notably, furnished properties are used for short-term rental business. The local law states that an entire property can be rented out, and a property owner cannot rent a specific part of his property.

In short, the concept of short-term rental business in Dubai involves real estate units that can be rented on a daily, weekly, and monthly basis or for a brief period. Numerous types of properties, including apartments and villas that are also called “holiday homes,” can be used for this purpose. On the contrary, hotels and hotel apartments are not dubbed holiday homes.

Residential villas cannot be used for short-term leases. Only villas that are located adjacent to main roads can be used as short-term rental units. Individuals seeking temporary accommodation should opt for services provided by the best short-term rental companies in Dubai to facilitate their visits.

Benefits Of Short-Term Rentals Dubai:

The demand for temporary accommodation is rapidly increasing in Dubai because of the influx of people visiting it for a myriad of reasons. If you own a property, you can also tap into this diverse market of travelers seeking short-term accommodation. This opportunity allows you to increase the earning potential of your property.

• Short-term rentals offer more profit as compared to long-term rentals because rates are quite high, leading to increased revenue
• It does not exploit your discretionary powers over your property. You can simply choose the duration you want to rent out your property and also utilize the property for your personal use when you desire
• Long-term contracts do not bind you, and you are free to use your property as per your desires
• You rent out your property for a limited duration. The possibility is you will not have to face any hassle related to tenant and landlord disputes
• This type of property normally attracts business professionals,  travelers, and tourists who need temporary residence
• Pricing can be adjusted based on the demand and requirements of units 
• Tax treatments are also different in the case of short-term rental properties as compared to long-term leasing agreements
• Regular coming and going of visitors allows you to keep your property well-maintained

Dubai Short-Term Rental Laws:

The Department of Economy and Tourism (DET) regulates short-term rental contracts, while the Ejari system is there to deal with long-term property rentals in Dubai. Permit and approval from the Department of Economy and Tourism is required to lease a unit to tenants. This permit is also called a license for vacation home rentals. 

One must attain this license before leasing his property. In order to get this license, register on the DET website and request a permit to rent your property. You can also get the services of a licensed operator to get a permit on your behalf. 

How Much Is The Cost Of DCTM Permit?

The average cost of obtaining a DTCM permit is AED 1520/year.  Further, the average permit fee for a studio/1-bedroom unit is AED 370, a 2-bedroom apartment is AED 670, a 3-bedroom unit is 970, and the permit fee for a 4-bedroom unit is AED 1270. 

Types Of Units Eligible For Short-Term Rentals

Short-term property management in Dubai involves overseeing the rental and maintenance of properties for temporary accommodation purposes. Every sort of property except hotel apartments can be used for this purpose. According to the Dubai Department of Tourism and Commerce Marketing (DTCM), all types of units are eligible to be used for temporary accommodation.

However, hotel apartments cannot be used. If you own a villa, you can also rent it out if it is located on a highway. Besides that, a house located in a gated community comprising a minimum of four villas can also be used for temporary accommodation. 

Things To Know Before Renting Holiday Home In Dubai:

Tenants and landlords must know the following factors before renting short-term rental properties in Dubai.

Considerations For Landlords

• Get a permit from the Department of Economy and Tourism before leasing your property
• Register tenants on the DTCM official portal
• Landlords must have insurance to cover any possible damage caused by tenants
• Landlords will also collect Tourism Dirham on behalf of DTCM and submit it to the DCTM before the 15th of the ongoing month
• Property owners should register themself as official dealers if they are to lease more than 9 properties at a time
• The owner can also allow tenants to sub-lease that specific property. But this clause must be included in the signed contract

Considerations For Tenants

• Tenants should sign a written agreement before renting the property
• The Tourism Dirham is AED 10/per night for a standard room and AED 15/per night for a deluxe
• These properties also have minimum stay conditions
• Tenants should also inquire about available facilities and amenities in a specific unit

Final Thought:

Short-term rental properties in Dubai offer a lucrative investment opportunity. Dubai hosts a significant number of visitors traveling for a brief period. People who are visiting the metropolitan city for a limited time seek short-term rentals in Dubai. It is a type of property leasing that allows temporary renting out of furnished properties.

The demand for temporary accommodation continues to rise. Property owners should get a permit from the DET before leasing out properties. It is mandatory to understand the regulations for short-term Dubai rentals, tenancy laws, costs, and considerations involved in the short-term property rental business in Dubai to make an informed decision related to short-term property rentals in Dubai.

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