In order to operate a short-term rental home in Dubai, you first have to be registered as a private owner. After that, you must obtain the proper permit for your property to make it a holiday home. Both of these procedures are done through the Department of Economy and Tourism (DET)’s online portal.

Registration and Permit

The first thing you have to do is to register as a private owner and obtain a permit through the online portal of the Department of Economy and Tourism (DET). This department is responsible for short-term contracts in Dubai. Short-term holiday homes are not permitted within hotel and apartment-hotel buildings, and long-term holiday rentals are only available in some hotels, depending on the individual developer’s conditions. Residential villas for short-term rental must be in a gated compound comprising a minimum of 4 villas.

Registration Procedure

The registration process is as follows:

<ol><li>Go to the <a href="https://hh.dtcm.gov.ae/holidayhomes/" target="_blank" rel="noopener">Holiday Homesportal</a> and sign up as a private owner.</li><li>Fill in the application form.</li><li>Upload your Emirates ID or a photo of your passport.</li><li>Submit the application.</li><li>Once your application is approved, you will receive an email with a link to the payment page where you must pay a registration fee of AED 1,520 (USD 414)*. You can pay via credit card or Smart Government-approved debit card.</li><li>Your account will be activated within 1 business day of receipt of payment.</li></ol>

*fee amount as of September 2023

Obtaining a Permit

Once you are registered as a private owner, you have to obtain a permit for your property to operate it as a holiday home. This step is done in the New Holiday Homes Permit Issuance sector. Your property will be categorised as either standard or deluxe, based on the amenities you indicate on the checklist. Homeowners can register a maximum of 8 units. You will be required to submit the following documents:

<ul><li>A copy of the title deed*</li><li>Authorization from you using the DTCM-approved form</li><li>A copy of either your Emirates ID or passport</li><li>Current Dubai Electricity &amp; Water Authority (DEWA) bill (not older than 3 months)</li></ul>

*If you don’t have a title deed, you can submit a SPA and either a payment completion certificate or clarifying letter from the developer or building owner(s). The process of obtaining a permit for your holiday home must be down using the following steps:

<ul><li>Log into the Holiday Homes portal.</li><li>Click on “Add a unit” and fill in the required information about your property.</li><li>Attach any required documents and submit the application.</li><li>Applications are reviewed within 1 business day. Once the agreement is received, it will be added to your dashboard and will become available for self-classification.</li><li>After submitting the self-classification and paying the required fees, your unit will be approved.</li></ul>

The mandatory service fee depends on the number of bedrooms your unit has. It costs AED 300 (USD 82) per bedroom, plus AED 70 (AED 19) for a Holiday Home classification certificate, as well as a required knowledge fee and an innovation fee. All in all, the permit fee ranges from AED 370 (USD 101) for a small unit, all the way up to AED 1,200 (USD 327) for a unit with 4 or more bedrooms. The permit must be renewed annually via the same portal. The minimum service fee is AED 320 (USD 87), which includes AED 300 (USD 82) per bedroom.

How to Operate a Short-Term Rental Property

Now that you are registered in the DET and have your permit, you can list your property on rental platforms. Please note that to be in accordance with DET guidelines, your property must be fully-furnished and insured. Short-term rental contracts are concluded for at least 1 day and can be prolonged up to 6 months. The terms of the contract and renewal agreements are negotiated between the landlord and tenant. The frequency and method of payment is indicated in the contract as well (cash, credit card, etc.). The tenant must pay a security deposit for the property. If there is any damage done to the holiday home, the deposit will cover these expenses. Within a maximum of 3 hours of your guest arriving at the property, you must check them in via the Holiday Homes portal. This is done in the “New check in” section. You will need to attach copies of the guest’s passport(s) or ID card(s) if they are GCC citizens. The check-out procedure is done in the “Check-out” section of the same portal. In May 2023, the DET introduced a QR Code Initiative for Holiday Homes in Dubai. This initiative requires owners of holiday homes to put a QR code at the main entrance of their property. This way, guests and visitors can find out important information about the holiday home operator and the contact details of the DET.

Costs Incurred by the Landlord

Below, you will find the breakdown of expenses you can expect as the operator of a short-term rental property.

Tourist Dirham

The Tourism Dirham is a specific charge per room per night regardless of the number of guests you have. You must put in the Tourist Dirham information by the 15th of every month on the Tourism Dirham e-System. The payment is collected via a direct check deposit or bank transfer to the department’s bank account. For long stays, the fee will be calculated only for the first 30 consecutive nights after check-in. This fee is based on the following category classifications:

<ul><li>Standard Holiday Home – AED 10 (USD 2.7) per room per night</li><li>Deluxe Holiday Home – AED 15 (USD 4) per room per night</li></ul>

Failure to adhere to the regulations of the Tourist Dirham payment can result in a penalty of up to AED 15,000 (USD 4K).

Utilities, Service Charge, Maintenance

As a holiday home operator, you are required to pay the maintenance and service charge yourself. Utilities, internet, and appliances are expenses that your guest(s) will cover as part of the rental cost.

Is it Hard to Operate a Holiday Home in Dubai?

It is quite easy to operate a short-term rental property in the emirate, since all the required procedures are completed via the Department of Economy and Tourism (DET)’s online portal. The most important steps include being registered as a private owner and getting a holiday home permit. Checking your guests in and out is also managed on the portal, minimising the hassle for you.