Renting Your Holiday Home in Dubai

Renting Your Holiday Home in Dubai

There is a set of standards and regulations that residents and operators in Dubai must abide by if they wish to lease out holiday homes in the Emirate.

Dubai’s tourism agency, the Department of Tourism & Commerce Marketing (DTCM), outlines regulations that specify the standards that should be met before a house can be leased out as a holiday home.

By regulating Dubai’s holiday home, DTCM wishes to broaden the range of options available to visitors, while ensuring that high standards of quality are achieved and maintained.

To start the process of registering your holiday home(s), and to ensure you understand what requirements are needed, we’ve got a step by step guide as well as additional information deemed applicable.

If you are an individual or group who wish to become a DTCM licensed operator, you will need to follow the steps to gain a license. If you are a homeowner with less than 20 properties that you wish to lease out for holidaymakers, you will be required to find a licensed operator to handle your affairs for you.

What defines a holiday home?
A holiday home is classified as a furnished accommodation, which is rented as a whole unit on a daily, weekly, monthly or annual basis without the issuance of an EJARI regulated tenancy agreement, and should be registered by DTCM through licensed operators.

What requirements need to be met to apply for a holiday homes license?
DTCM have a number of specific criteria’s that homeowners must meet in order to successfully apply for their license, including quality standards, amenities, health and safety, insurance necessities, code of conduct, and wider community integration.

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• What you need to know about renting in Dubai
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Homeowners and Dubai-Tourism licensed operators are accountable for ensuring the property meets all legislative requirements and complaint management policies, are sufficiently maintained and amenities and guest services provided for and are accurately listed to visitors.

How can I register as a holiday homes operator?
To register as an operator, there is two stages; the first is to have a holiday homes license issued, and the second is to register in the holiday homes online system.

To have your holiday homes license issued, you must follow these three steps:

1. Issue an initial approval, by checking the required documents here.
2. Reserve your trade name by filling in the application form and submitting it to licensing counters.
3. Have your license issued by submitting all earlier requirements in addition to the Memorandum of Association (if applicable) and EJARI Tenancy contract for your property.

To register in the holiday homes online system, simply log in to DTCM’s Holiday Homes section, and click on register as a new operator and fill in the required details and form.

! Remember, you will need to upload a scanned copy of your license. In order to be legitimate and able to operate, operators must have a portfolio of 20 units minimum.

What if you only have 1 unit to rent as a holiday home?
Home owners with less than 20 units will need to use the services of a licensed operator, with their property becoming part of the operator’s portfolio.

How long will the process take?
It takes approximately three to four working days to process the initial approval that is valid for a period of six months, in which to satisfy the requirements for the final license and consequently become a licensed operator.

How much does it cost to apply?
There is different kinds of applications that you will need to submit and pay for, as the following:

1. Initial approval, AED 110.
2. Trade name reservation, AED 210.
3. License registration, this isn’t a fixed cost and varies from case to case depending on many variables, such as legal type of the license, number of shareholders, office rent etc.
4. Permit fees, for each unit in your portfolio, you will pay AED 300 per year for each bedroom and a maximum amount of AED 1,200 in total.
5. Classification fee, AED 50 per unit.

How do I register my units?
When your company account is activated, you will be able to log in to the system and start registering your staff and units.

If you are a home owner wishing to use a registered company to lease your holiday home, you may do so by getting in touch with your chosen licensed company.

SEE ALSO: More information for holiday home owners provided by DTCM

Do I need an Ejari contract from the home owner?
No, a tenancy contract is not required. When you register any property into the system, you will need to provide the following:

• Unit title deed
• Owner’s passport copy
• Authorisation (letter template will be provided upon getting a license)
• DEWA bill for the mentioned unit

What kind of classifications are there for holiday home?
There are two categories for holiday home in Dubai: standard and deluxe. The fee for both is the same, however the tourism Dirham is different.

How much is the tourism Dirham?
You should charge AED 15 per bedroom for a deluxe holiday home, and AED 10 per bedroom for a standard holiday home. The formula for calculating the tourism Dirham fee is as follows:

Tourism Dirham = number of nights x number of bedrooms x tourism Dirham fee, as per the unit’s classification category.

The tourism Dirham fee is applicable to all guests staying in a holiday home.

What if I don’t have a license for my holiday home?
Individuals and unlicensed companies that advertise or lease out homes on ad-hoc or short-term basis face fines up to AED 100,000.