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Rental Investment Dubai: Legalities of Airbnb and Short Term Rentals in Dubai

Rental Investment Dubai: Legalities of Airbnb and Short Term Rentals in Dubai

AIRBNB and short-terms rental investment in general become an effective way to maximize yields for homeowners. With the tourism growth and the changing expectations it become a popular way to travel for tourists and business travellers visiting Dubai. Residential properties can be turned into Airbnb short term rentals through the assistance of licensed agencies in terms of marketing.

The Dubai Law on Airbnb Short Term Rentals Dubai

The Dubai government approved a law in 2016. The landlords can now cut off legally the services of middlemen and list the property on the home sharing giant Airbnb. Airbnb has been actively promoting properties in Dubai for years, but it has been working in the gray area of things. With the rules set by the Dubai government, through the Department of Tourism and Commerce Marketing (DTCM) property owners can now list their properties on the site. This means that investors can now host an Airbnb in Dubai and earn more.

It is also possible for investors now to rent their homes even if they are only tenants and don’t really own the house. Homeowners and tenants have to register the property through the Holiday Homes provision of the Dubai Tourism department for them to host short-term guests. This is designed to make sure that the homeowners or the sub-letters will be able to qualify in terms of quality, codes of conduct, safety, amenities, health and insurance benchmarks that UAE set. Investors have to be aware that sharing of standalone rooms is still considered illegal.

Steps to Acquiring Airbnb Short Term Rentals Dubai

There are several steps to follow for both the homeowners and the tenants. The homeowners should create an online account on the Holiday Homes website. Choose homeowner for the registration type and register yourself as the property manager. A valid UAE ID scanned copy or passport copy must be uploaded to the site. It will take three days for it to be processed. Next step is to head to the Department of Tourism office to submit all the required documents and pay the fee of Dh1,590. It is also necessary to pay a license fee of Dh300 per bedroom in the property rental. A copy each of the title deed and the Ejari registration has to be submitted. Once approved, the homeowner will be assigned a username and account as the approved Holiday Home provider. After this, the license can be claimed.

Tenants must follow the same steps but with some minor changes. They must acquire a No Objection Certificate (NOC) from the homeowners aside from the authorization letter from the property owner. It is also necessary for the tenant to submit the tenancy contract copy, Dewa bills, and the Ejari registration proof. Tenants are not allowed to sublet more than one residential unit at one time.

Tips to Be a Good Airbnb

To be a good Airbnb, it is necessary to bear in mind several aspects: Set a reasonable price for the rooms. It helps if you make yourself available and easy to find to guests. Always make sure that you have a high response rate. As much as possible, try not to cancel any reservation. Send all the necessary information to guests including the house rules, check-in and check-out details, rules on pet, etc. It is also necessary for the property owner to make sure that there are basic amenities and services for the guests.

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