Short-term Rentals Dubai: Leasing Rules and Regulations
- UpperKey
- Dec 5, 2022
- 7 min read
Updated: May 30
The reasons for renting an apartment for short term rent in Dubai can vary widely, such as needing to attend a conference covering two weeks, setting up a new business over a few months, or even a holiday vacation in Dubai. Whether vacationing or in Dubai for work, there are many elite clients wanting all the comforts of home while they are away. This means modern appliances, spaciousness, upper-class furnishings, and the best of the best in Dubai.
Dubai has rapidly become a global hub for business and leisure, driving demand for holiday homes Dubai. This growth is evident in the rise of Dubai holiday home rentals and short-term leasing in Dubai, especially in prime areas of Dubai real estate. The home dubai trade has seen significant expansion, with short stay Dubai options becoming increasingly popular among visitors.
Table of Contents
The Role Of UpperKey
UpperKey facilitates the relationship between those needing a place to stay in Dubai that meets certain minimum standards and demands for luxury and homeowners with suitable properties for rent. As one of the leading names in the list of holiday homes companies in Dubai, UpperKey takes on the role of a tenant and property owners, providing them with a good, reliable rental revenue. Simultaneously, UpperKey acts as the lessor for tenants, ensuring that the property is superbly clean and furnished with all the mod cons and desired styles. This makes for a great short-term rental experience for owners and tenants alike. There are also medium and long term rentals Dubai options available.
UpperKey also ensures that property owners remain compliant with all Department of Economy and Tourism (DET) regulations Dubai, streamlining the entire short-term leasing process. As a prominent holiday homes company Dubai, UpperKey offers comprehensive property management services, including property maintenance, guest screening, guest communication, and guest check-in procedures.
Let us now look at the ins and outs and the benefits of the short-term rental business in Dubai in much greater detail.
How Short-Term Rental Is Defined In Dubai?
The goals of holiday homes Dubai are different from prolonged residential aims. The former is required for only a brief period, due to work requirements or vacationing whereas the latter is more concerned with having a home to live and stay in for extended periods.
Short-term rentals in Dubai are more likely to be fully furnished to provide the tenant with all of the work or home amenities they require, such as internet, water, and electricity. These units may also be serviced by a cleaning service during or between stays.
Short-Term Leasing in Dubai Typically Includes:
High-speed internet and utilities
Modern furnishings and appliances
Regular housekeeping services
24/7 guest support
The Dubai law states that a short-term rental cannot involve renting out only a portion of the property. The full premises in their entirety have to form part of the rental agreement.
Additionally, owners are required to maintain proper records and, in some cases, provide a no-objection certificate (NOC) from the building's management or developer. Not having this document may result in rental registration complications.
DTCM Fees and Regulations for Short-Term Rentals in Dubai (Updated for 2025)
To legally rent out a property short-term in Dubai, homeowners or tenants must obtain a holiday home permit from the Department of Economy and Tourism (DET), formerly known as the Department of Tourism and Commerce Marketing (DTCM). The key requirements and fees include:
Annual Registration Fee
AED 1,520, which includes a knowledge fee and innovation fee.
Property Permit Fee
Unit Type | Fee (AED) |
|---|---|
Studio or 1-bedroom | 370 |
2-bedroom | 670 |
3-bedroom | 970 |
4-bedroom or larger | 1,270 |
Permit Validity
One year, renewable annually.
Maximum Permits
An individual can hold permits for up to eight units. Beyond this, they must register as a professional operator and obtain a trade license.
Step-by-Step Guide to Getting a Holiday Home License Dubai
Visit the DET website
Navigate to the "Holiday Homes" section
Choose "Homeowner" and sign up
Complete the application form
Upload Emirates ID or passport
Pay the AED 1,520 operator fee
Upload title deed and DEWA bill
Submit the application for review
Compliance with DET regulations Dubai ensures properties meet safety, quality, and service standards required for short-term rentals. This process is crucial for obtaining an Airbnb license Dubai, as the platform has become increasingly popular in the city.
Types Of Units Eligible For Short-Term Rental
The Department of Tourism and Commerce Marketing (DTCM) in Dubai allows all types of units to be used for holiday homes Dubai except for hotel apartments, which are dealt with separately.
It is acceptable and perfectly legal to put a villa for short term rent in Dubai. The two conditions attached to renting out apartments and villas are that they must form part of a group of a minimum of four villas and that this villa community must be gated.
Standalone apartments for short term rent in Dubai and villas in gated communities are preferred under DTCM rules.
The Department of Tourism and Commerce Marketing of Dubai (DTCM) additionally makes provision for the renting of commercial villas stationed on highways to be rented as vacation homes in line with DTCM regulations.
Owners should also be aware of restrictions related to subletting. Subletting without appropriate permissions or licensing is strictly prohibited and could lead to penalties.
Details on the Tourism Dirham Tax for Short-Term Rentals
Operators of holiday homes Dubai must collect the Tourism Dirham Tax, a nightly fee charged to guests for up to 30 consecutive nights of their stay. The tourism dirham levy depends on the property's classification:
Standard Properties: AED 10 per night
Deluxe Properties: AED 15 per night
Payment and Reporting Requirements:
Collect Tourism Dirham from each guest
Report and remit fees monthly
Deadline: 16th of the following month
Late submission can lead to penalties or revocation
This tax contributes to promoting tourism in Dubai while ensuring short-term rental operators remain compliant with local regulations.
Additionally, holiday home activity operations must be reported accurately, and hosts should monitor occupancy rates to evaluate profitability and compliance. The holiday home system in Dubai is designed to balance the needs of property owners, guests, and the city's tourism industry.
The Homeowner Benefits When Letting Their Property Short-term
Letting a holiday home for short term lease in Dubai or in the UAE comes with many advantages to homeowners in Dubai. Short-term rental investment property has become an attractive option for many investors.
Higher Seasonal Earnings
Rental fees can be adjusted for peak seasons, increasing profits.
Reduced Maintenance
Property maintenance is required only during occupied periods.
Owner Flexibility
The owner can use the property between bookings.
Market-Based Pricing
Allows dynamic pricing depending on demand and trends.
Complete Control
Owners decide rental periods and availability.
Short-term rental income in Dubai can be a significant revenue stream for property owners, especially in high-demand areas. The growing popularity of rental arbitrage Dubai has also opened up new opportunities for entrepreneurs in the short-term rental market.
How to Get A Permit In Dubai For Short-Term Rentals?
The governing bodies for short-term and long-term rentals differ. They are managed and regulated by Ejari and fall under the Real Estate Regulatory Agency (RERA) in Dubai. Again governed by RERA, holiday homes Dubai are the province of the Department of Tourism and Commerce Marketing (DTCM).
For short term rentals in Dubai, the DTCM must be approached for permits. This governing body markets and develops the Dubai tourism industry, as well as overseeing all aspects such as short-term rentals provided by Dubai citizens and homeowners.
Permit Application Steps
Find the "Holiday Homes" section on the website.
Select the "Homeowner" option to sign up.
Complete all the fields on the form.
Upload your passport or Emirates ID.
Pay the operator fee of AED 1,520 annually.
Apply for your holiday home license.
Upload the title deed and DEWA (Dubai Electricity and Water Authority) bill for your property.
A landlord can obtain a maximum of eight permits. If the number of units exceeds this figure, the owner must apply as a professional operator and will need a home business license in Dubai.
Conclusion
Experience the convenience, flexibility, and the benefits of the short-term rental business in Dubai with various rental platforms. List your property on Airbnb and unlock the opportunity to cater to travelers seeking temporary accommodations in the vibrant city of Dubai.
Investing in property in Dubai has become increasingly popular, with many individuals seeking short-term gains in the real estate market. The city's booming economy and attractive lifestyle make it an ideal destination for those looking to purchase holiday homes or capitalize on short-term rental investment property opportunities. The thriving real estate sector in Dubai offers a wide range of options for investors, from luxury apartments to beachfront villas, ensuring a profitable short-term investment in the property market.
Holiday homes Dubai are great for making a nice income. If you own a property in Dubai, why not give it a go?
Start earning with holiday homes Dubai today – connect with UpperKey for a seamless hosting experience. List your Dubai holiday home and capitalize on the lucrative market of property rentals in the UAE.
FAQs
Q1: Do I need a trade license for holiday homes Dubai?
Only if you manage more than eight units.
Q2: Can expats legally rent their property short-term?
Yes, provided they obtain the proper DET permit.
Q3: Is Airbnb legal in Dubai?
Yes, Airbnb is legal in Dubai, but hosts must comply with DET regulations Dubai and obtain the necessary holiday home license.
Q4: What is the holiday home license Dubai cost?
The cost includes an annual registration fee of AED 1,520 and a property permit fee ranging from AED 370 to AED 1,270, depending on the unit size.
Q5: What are the benefits of using a holiday homes company Dubai for property management?
A holiday homes company Dubai can handle property maintenance, guest screening, guest communication, and ensure compliance with local regulations, making the process smoother for property owners.
