Holiday Homes: Short-Term Rentals Now Legal in Dubai

Holiday Homes in Dubai

Great news is finally here for Dubai home owners and tenants. You may now enjoy a decent income from renting out your assets as licensed short-term holiday homes.

The holiday rentals market has seen explosive growth around the world in a short period of time, and this trend is not going away soon. Technavio’s market research analyst believes that the global vacation rental market will reach $169.7 billion by 2019. For many home owners, it is a fantastic way to get higher returns from their property, and for many travelers it has become their preferred style of accommodation.

With the high volume of visitors relative to size of its population, Dubai is one of the world’s best placed cities to foster this market. According to MasterCard’s GDCI Report, Dubai had 5.7 overnight visitors per city resident in 2015, with an estimated international visitor spend per city resident of USD$4,668, ranking Dubai in 1st position globally for both these indices. With the emirate expecting to reach over 20 million visitors in 2020, you can expect continued strong demand for tourist accommodation, and vacation rentals are no exception.

But with restrictions previously in place, vacation rentals could only be legally managed by licensed companies, and short-term letting was banned for anyone else. However, as of the 28th April 2016, the Department of Tourism and Commerce Marketing (DTCM) lifted this ban and invited applications for individuals to get involved in the vacation rentals market. This means, unlike before, you can now benefit in a big way from the large influx of tourists coming to Dubai.

  • As a home owner, short-term rents throughout the year can earn up to 40% more than conventional long-term residential lets.
  • As an owner or tenant of your own home, you can make an extra earning when you go away by renting it to visitors.
  • Beyond the dollars, making guests feel at home in your own home is highly rewarding. You will love when they compliment your hospitality, and you will create meaningful and interesting connections that span the world.

Holiday Homes in Dubai – A Quick Summary of What You Need to Know

  • You can apply for a Permit from DTCM for any property that you own, or if you are a tenant you will need authorization from your landlord first.
  • You are only permitted to manage your own home. Unlike Operators, you cannot manage on behalf of other owners.
  • An insurance policy is required on your property before you start taking bookings.
  • Every guest that is received must be personally checked in. Their original passports/IDs must be personally verified. Guest details must then be submitted into an electronic DTCM system as soon as they physically enter the property. The system must then be updated again once they physically check out of the property. This system is linked to Dubai Police and is a crucial security measure for authorities to have data on people entering and exiting the city and where they are staying. It also protects you as a Permit holder, ensuring you are not held liable for any unlawful incidence committed by your guests.
  • Permit holders will pay Tourism Dirham (tax) to DTCM every month.
  • DTCM has set standards for the property, listing and service that you need to maintain.
  • Failure to comply with DTCM requirements can result in fines of AED 5,000+, so be careful but don’t be deterred – it is not so easy to break the rules.

Be excited about this fun way to earn more. For advice on how to get started and answers to any of your questions, you can reach out to Faraway Homes via their ‘host’ page on

Sponsored Article: Faraway Homes is a Holiday Homes Operator, licensed by the Department of Tourism and Commerce Marketing (DTCM) in Dubai under trade name Faraway Holiday Homes Rental L.L.C.

Author: Ameer Jawad, Founder – Faraway Homes

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