top of page

Maximise your rental income!

Short-term Rentals Dubai: Leasing Rules and Regulations

The reasons for renting an apartment in Dubai for a short-term stay 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.


Short-term rentals Dubai

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. UpperKey takes on the role of a tenant and property owners, providing them with a good, reliable income. 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 prolonged letting options in Dubai.


Let us now look at the ins and outs and the benefits of the short-term rental in Dubai in much greater detail.


How Short-Term Rental Is Defined In Dubai?


The goals of short-term rentals are different from prolonged residential aims. in Dubai 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.


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.


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 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

Varies based on the unit type:


  • Studio or 1-bedroom: AED 370

  • 2-bedroom: AED 670

  • 3-bedroom: AED 970

  • 4-bedroom or larger: AED 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.


Compliance with DET regulations ensures properties meet safety, quality, and service standards required for short-term rentals.

Types Of Units Eligible For Rental


The DTCM or the Department of Tourism and Commerce Marketing in Dubai allows all types of the units to be used for short-term rentals except for hotel apartments, which are dealt with separately.


It is acceptable and perfectly legal to put a villa up for rental 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.


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.

UpperKey property management blue banner

Details on the Tourism Dirham Tax for Short-Term Rentals


Operators of short-term rentals in Dubai must collect the Tourism Dirham Tax, a nightly fee charged to guests for up to 30 consecutive nights of their stay. The fee depends on the property’s classification:


  • Standard Properties: AED 10 per night

  • Deluxe Properties: AED 15 per night


Payment and Reporting Requirements:


  • The collected Tourism Dirham fees must be reported and remitted monthly to the Dubai Corporation for Tourism and Commerce Marketing by the 16th of the following month.

  • Failure to remit the fees can result in penalties or permit revocation.


This tax contributes to promoting tourism in Dubai while ensuring short-term rental operators remain compliant with local regulations.


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.


Benefits of short-term rent

  • Firstly, permanent rentals are more prone to disputes between owners and tenants as time goes by, which is circumvented by short rental periods.

  • Secondly, maintenance is limited to the duration of actual rentals instead of being a year-long burden and puts less pressure on your property.

  • Thirdly, the landlord can make use of his property any time he needs it by simply not getting a new short-term tenant for that period, while this is not possible with a long-term tenant.

  • Fourthly, the rental fee is fixed for the duration of a long-term lease but in a short-term rental, the price can fluctuate, e.g., during peak holiday seasons and as the unit becomes more popular and tenants are willing to pay a higher price. This means more income for the owner.

  • Fifthly, and finally, the owner has complete control over how long they want to lease their property and can make use of it for other purposes as required.


How to Get A Permit In Dubai For Short-Term Rentals?


The governing bodies for short-term and long-term rentals differ. They are are managed and regulated by Ejari and fall under the Real Estate Regulatory Agency (RERA) in Dubai. Again governed by RERA, short term rentals in 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 trade, as well as overseeing all aspects such as short-term rentals provided by Dubai citizens and homeowners.


Obtaining a permit in Dubai must take place before a property is let out. This is accomplished by going to the DET website and following these steps:


Step 1. Find the “Holiday Homes” section on the website.

Step 2. Select the “Homeowner” option to sign up.

Step 3. Complete all the fields on the form.

Step 4. Upload your passport or Emirates ID.

Step 5. Pay the operator fee of AED 1,520 annually.

Step 6. Apply for your permit.

Step 7. 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 trade license.
UpperKey property management blue banner

Conclusion


Experience the convenience, flexibility and the benefits of the short term lease of holiday homes in Dubai with Airbnb. 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 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.


Short-term rentals are great for making a nice income. If you own a property in Dubai, why not give it a go?

Determine your property's rental value with UpperKey as your tenant

WhatsApp
bottom of page