While the Dubai real estate industry is already conducive to high rental yields, Dubai has always welcomed more and newer opportunities in the short-term or holiday home rental category.
Speaking of which, Dubai offers better yields for those looking to utilise their property and even leaseholders who can at least rent the house. Just in case you want to venture into the short-term rentals or DIFC apartments for vacations rental, here are some essential things you should know:
Who Regulates the Vacation Rental Market in Dubai?
The market in Dubai is quite a new regulated industry (Decree No 41 of 2013), which has been emerging in recent years. Short term vacation rental properties must be registered with the governing body. The Department of Tourism and Commerce Marketing (DTCM) has set comprehensive legislative guidelines for holiday home operators. They consider the rules and regulations, which will make them comply with some standards operations to some extent.
Could a homeowner use part of their home as a vacation rental?
Also, the full apartment will be rented according to Dubai Tourism (DTCM) rules and not shared with a landlord or other sharers. Owning the property is only permissible for the owner’s personal use after paying relevant government fees during their stay.
I plan to rent out my property for short-term lettings in Dubai. What should I do?
According to Dubai Tourism (DTCM), the owner, or anyone else besides your sharing guests, cannot share this apartment. The owner’s personal use of the property is permitted upon payment of the usual government fees during stay-occupancy.
I have a property in Dubai that I intend to rent out as a short-term let. What should I do?
You can use the services of holiday home operators in Dubai, like Fam Living or other DTCM-licensed vacation rental operators. The holiday home operator will assist in obtaining the DTCM permit. The furnishings of your apartment must meet DTCM’s standards, and frequent inspections by DTCM inspectors should be expected.
Dubai is known for its hospitality, and as a holiday home provider, you must be ready to offer hotel-like services in your vacation home. The holiday homes industry is competitive, so you may need multiple viewings before listing your property for short-term rentals.
Therefore, renting through a reputable holiday home provider with significant experience and a good reputation is recommended to maintain your property in top condition.
How Expensive Is A DTRCM Permit For Short-Term Rental In Dubai?
Here are the charges for a DTCM permit depending on the property configuration (as of 12/10/2020):
- 1 bedroom homes: AED 370/-
- 2 bedroom homes: AED 670/-
- 3 bedroom homes: AED 970/-
- 4 bedrooms and above AED 1270/-
What Are The Advantages Of Short-Term Renting For Me?
A holiday rental will always command a premium above traditional long-term rentals (Ejari). This premium size typically correlates with supply-demand factors. In Dubai, a 25-30% gross annual rental premium is usually achieved over traditional long-term rentals. Additionally, the homeowner has the added assurance of maintaining their property in mint condition, and it will always remain available for private use upon early confirmation and availability.
Conclusion
Whether you’re a landlord or a guest, following these vacation rental tips can ensure a seamless experience in Dubai. For landlords seeking to manage their short term vacation rental properties or guests looking for the perfect stay, Hudu Homes is your trusted partner. With a wide range of short-term rental properties across prime locations in Dubai, Hudu Homes offers flexible, convenient options that cater to your needs. Connect with us to learn more about our services.
