The Guide to Operating Holiday Homes in Dubai: Legal Requirements and Compliance
Introduction to Holiday Homes in Dubai
Dubai’s real estate market offers great opportunities for property owners and tenants interested in short-term rentals. To legally operate holiday homes in Dubai, you must understand the specific legal requirements and compliance standards set by the Department of Economy and Tourism (DET), formerly known as DTCM.
The Basics of Short-Term Rentals in Dubai
Obtaining a Unit Permit
First, to rent out your property as a Holiday Homes in Dubai, you must obtain an annual ‘Unit Permit’ from the DET. Additionally, you must pay the Tourism Dirham (Tourism Tax), which varies based on the number of nights your property is occupied.
Registration with DET
Before listing your property on popular platforms like Airbnb, Bayut, or Property Finder, you must register with the DET and set up an official account.
Can Tenants Operate Short-Term Rentals in Dubai?
Tenant Eligibility and Requirements
Authorized tenants can convert their rental property into a vacation homes rental in Dubai. However, they must secure a No Objection Certificate (NOC) from the owner or landlord. After obtaining the NOC, the tenant must register the property with the DET for the Unit Permit and pay the Tourism Dirham. Notably, tenants can only operate one property unless they acquire a business license for managing multiple units.
Key Requirements from the Department of Economy and Tourism
Cost of a DET Unit Permit
The cost of a DET Unit Permit ranges from AED 370 to AED 1,270 per year, depending on the size of the property. Moreover, you must have comprehensive insurance that covers guest injuries, property damage, and building damage.
Listing Your Property
Once you meet all these prerequisites and register your property with the DET, you can list it on popular booking platforms.
The Importance of Insurance for Holiday Homes in Dubai
Mandatory Insurance Policies
You must have a comprehensive insurance policy, as required by the DET. This policy protects both the property owner and the guests, ensuring that any potential incidents are adequately covered.
Stepping Through the DET Permit Requirements
Authorized Areas and Property Categories
To legally operate a holiday home in Dubai, your property must be in an area authorized by the DET. Furthermore, your property should fit one of the following categories:
- An apartment in a building designated for such activities
- An apartment in a residential building (specified as “Apartment” or “Flat” on the title deed; hotel apartments are excluded)
- A house or villa within a real property compound
- An independent villa
Technical Specifications and Documentation
Meeting Technical and Legal Standards
Your property must meet the technical specifications and requirements outlined in DET’s classification guide. Additionally, owners or tenants must submit a valid passport or Emirates Identity Card and provide proof of their right to dispose of the property unit. The sale and purchase agreement must not prohibit its use as a holiday home.
Guest Check-in and Compliance
Ensuring Proper Procedures
You must follow all technical requirements as stipulated by the DET guide. During check-in, you must submit guests’ passports to building security and register them on the DET’s online portal. Similarly, you must appropriately register guest check-out. Adhering to these regulations ensures that holiday homes in Dubai operate legally and seamlessly, benefiting both property owners and guests.
Simplify Your Experience with Holiday Homes in Dubai with Like Home
Navigating the legal requirements and compliance standards for operating a holiday home in Dubai can be overwhelming. That’s where Like Home Holiday Homes steps in. We handle everything for you, from obtaining the necessary permits and managing all paperwork to ensuring your property meets technical specifications and insurance requirements. Furthermore, we manage property and guest services, ensuring a seamless and stress-free experience for both you and your guests. Just send us a message, and we’ll take care of the rest. Relax and enjoy the benefits of your holiday home investment while we simplify the process and take the hassle out of short-term rentals in Dubai.
