Dubai is a well-known tourist destination, with people visiting the city from across the globe. Catering to thousands of tourists, the Department of Economics and Tourism (DET) has designated holiday homes, hotels and hotel apartments in Dubai. The holiday homes are generally furnished accommodations available as short-term rentals.
However, do you know the complete details about holiday homes? How can you obtain a permit and become a holiday home operator? Here are the answers to some common faqs about holiday homes in Dubai that will help you understand complete details.
Holiday Homes in Dubai FAQs
Daily and monthly short-term rentals in Dubai are popular among tourists and business travellers. Holiday homes offer space and flexibility alongside top-notch facilities and amenities. Moreover, holiday homes are mostly located near shopping malls, historic buildings and cultural heritage sites.
To register the property as a holiday home and become an operator, applicants must know the documents required for registration and permit. Therefore, here we will answer the frequently asked questions about holiday homes in Dubai to ease the procedures and help understand the comprehensive details.
What is a Holiday Home In Dubai?
A holiday home in Dubai is a fully furnished, self-catering accommodation available for monthly or daily short-term rental in Dubai, typically for tourists and business travellers.
What are the Benefits of Owning a Holiday Home in Dubai?
Owning a Holiday home in Dubai has many perks, such as world-class amenities and can become your vacation home. Moreover, you can gain from high-rental incomes by registering your property as a holiday home in Dubai.
Other benefits include no income or capital gains tax and potential property value appreciation. All in all, a holiday home serves as your vacation home, and you can rent it to generate an income.
How Do You Maintain a Holiday Home?
Using a home maintenance checklist can help keep your home in proper and livable condition. Holiday home maintenance includes cleaning the interior and exterior, pest control, air conditioner maintenance and installing updated security systems.
Are Hotels or Hotel Apartment Categorised as Holiday Homes?
No, DET has a separate category for holiday homes. Owners can register their studio apartments, penthouses, townhouses, apartments and villas as holiday homes, whereas DET classifies hotels as a different service.
How Much is the Tourism Fee for Holiday Homes in Dubai?
A tourism fee, also known as tourism Dirham, is a charge paid by guests for staying in holiday homes. The tourism dirham charges depend on the following categories:
- Deluxe Holiday Home: AED 15 per room for a night
- Standard Holiday Home: AED 10 per room for a night
Remember that the charges are regardless of the number of guests. The operators will collect the tourism Dirham from the guests and submit it to DET.
How to Set Up a Holiday Homes Business in Dubai?
Homeowners can follow steps to turn their property into a holiday home in Dubai. Ensure that you prepare your home and check its condition. After that, apply for a holiday home permit in Dubai and register for the check-in and check-out process.
Also, list your property on dubizzle or hire a real estate agent to reach potential clients. But before that, obtain a trade licence to set up your holiday home business in Dubai.
Are Holiday Homes for Residential Purposes in Dubai?
It is another important FAQ about holiday homes in Dubai. Holiday homes serve a residential purpose since many people choose these homes as temporary residencies. Besides, holiday homes provide flexible payment options because tenants can pay rent monthly.
How to get Holiday Homes Licence in Dubai?
You can obtain a holiday home permit in Dubai by simply logging into the DET portal and adding units. After that, submit the required documents and application. DET will review the application, and you will receive an email regarding the approval. Following that, pay the required fees and start operating your holiday home.
What is the Maximum Number of units that an Individual Can Operate as Holiday Homes?
A user can register only eight units as holiday homes in Dubai.
Do Tenants Need an Ejari Registration when Renting a Holiday Home?
The guests won’t have to register on Ejari. However, the tenants operating their rental property require an active Ejari registration and the landlord’s approval.
Are all Villas Allowed as Holiday Homes?
No. DET considers residential villas in a gated community with four or more villas. Moreover, DET allows commercial villas on main roads.
What Documents do I Need to Submit when Registering a Holiday Home in Dubai?
Homeowners must submit the following documents to obtain a holiday home permit:
- Title deed or sales purchase agreement
- Emirates ID or passport copy
- Trade licence
- Recent DEWA bills
- Property management contract (for property management companies in Dubai)
- Tenancy agreement and Ejari registration (for tenants)
Is Title Deed a Mandatory Requirement for Holiday Home Registration?
No, you can submit the Sales and Purchase Agreement (SPA) or a payment completion certificate or a letter (Addressed: To Whom It May Concern) from the developer or building owners clarifying the following points:
- No title deed available for this unit
- Mention the payment plan if the unit is still on a payment plan and that there are no outstanding dues
- Mention that it’s a residential unit
Which Trade Licence for Dubai Holiday Home Operators is Required?
You can apply for a tourism licence if operating a holiday home. You can submit the following documents:
- Complete application form
- Passport copy or Emirates ID
- Two passport-size photographs
- Details of the property
How Much is a Holiday Home Permit in Dubai?
The holiday home permit fee is AED 1,520 (AED 10 each as innovation and knowledge fees included).
What are the Popular Areas for Short-term Rentals in Dubai?
As per the dubizzle’s Dubai Annual Rental Market Report 2022, Jumeirah Village Circle, Business Bay, Deira, Dubai International City and Dubai Marina are some of the popular areas. You can find details about popular neighbourhoods for short-term rentals in Dubai and invest accordingly.
These were all the common FAQs about holiday homes in Dubai. Additionally, you can follow the short-term rental advice when choosing one. You can look for long-term rental apartments in Dubai and find the one that meets your needs.
Stay tuned to dubizzle’s real estate blog to find details about short-term rentals in the UAE.
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