- Short-term rentals
- Process of renting short-term properties
- Where to list short-term properties
- Things to know before renting
- FAQs
In recent decades Dubai has emerged as a centre of tourism, business and cultural activities. That said, people from all over the world visit Dubai and call it home. To cater to this influx, the real estate industry offers different residential options, including short-term rentals.
Short-term property rental refers to a property rented out for a limited period, a maximum of 6 months. A number of property owners choose this option due to the tax benefits, additional income, lesser legalities and other facilities. It is also popular among tenants due to lesser legalities and minimum time stay limitation.
This guide will provide complete details regarding the process and legalities involved in renting your property for a short term in Dubai.
Definition of Short-Term Rentals
Short-term property rentals, also known as holiday homes, refer to real estate rented monthly, weekly or daily. Generally, short-term rental property is inclusive of furniture and other basic utilities (water, electricity and internet). A wide range of properties, like apartments and villas, are available for short-term rentals. You can convert any property into a holiday home in Dubai, excluding residential villas. Only villas located on the main road or within the closed boundary can be rented for the short term. Also, hotel apartments and hotels are not counted as holiday homes.
Here are some properties for short-term rental in Dubai listed on dubizzle that you can browse through.
Process of Renting a Property for Short-Term in Dubai
Following are the legalities and processes involved in renting your property for a short term in Dubai.
Short-Term Rental Contract
Dubai Tourism and Commerce Marketing (DTCM) monitor short-term rental contracts. Therefore, owners are not liable to register short-term contracts with Ejari Dubai. However, owners must get registered with the DTCM to obtain a permit. The permit legalises their property to be rented for a short term. Property owners can opt for a direct registration process or recruit licensed operators to cater to all the legalities.
The tenants are not subjected to many legalities contrary to long-term property rentals. Tenants are allowed to sublease property for a short time based on a No Objection Certificate (NOC) provided by the property owner.
Following are the complete processes and details of acquiring permits and NOC.
Permits and Legalities for Renting Holiday Homes
Individuals willing to acquire a permit or certificate from the DTCM are first required to get themselves registered with the DTCM.
Registration Process
You can register yourself by visiting the DTCM official website. Select the ‘Work with us’ option on the bar and open ‘Our services’ menu. Select ‘Register as a holiday home operator’ and register your account. Once you have registered your account, fill out the online application form and upload the following required documents:
- Emirates ID or Passport (Copy) of the tenant(s) or property owner.
For professional operators:
- Commercial licence (Copy) of the operator.
- Emirates ID or Passport (Copy) of the manager representing a commercial operator.
The registration fees charged by the DTCM are AED 1,500 + AED 10 innovation fee and AED 10 knowledge fee. Remember that tenants can only register 1 unit at a time with the approval of the landlord.
Holiday Home Permit
Once registered with DTCM, you can apply for a short-term rental permit. See the steps involved in applying for the permit.
- Log in to your Holiday Home account.
- Select ‘Add unit’ and fill in the required information regarding the property.
- Submit the required documents and upload your form.
- After approval, self-clarify your property and pay the required charges.
Documents required for acquiring the short-term rental permit are:
- Signed Emirates ID or Passport (Copy) of landlord
- Recent DEWA bill
- Property management letter
- For tenants, a tenancy contract
Other documents may also be required if a property owner is an entity or company, not an individual. Moreover, landlords can register only 9 properties at a time. The permit is provided for a minimum of 3 months and a maximum of 12 months and must be renewed after the expiry date.
You can also read our guide on short-term rentals in Dubai for detailed information.
What to Do After Getting a Permit
Once the owner or tenant receives the permit by DTCM, they can rent their property. However, finding an appropriate tenant for the property can be a hassle. The same is the situation with the tenants finding holiday homes.
A one-stop solution for both parties is dubizzle. Tenants can browse through Dubai apartments for short-term rentals and find an array of properties listed by the owners. Landowners can reach a wide range of users searching for a holiday home by advertising at dubizzle.
For your convenience, we have listed different ways to boost property listing on dubizzle.
Landowners must have insurance to cover the risk posed by guests. They are also liable to inform the building management before the tenant(s) arrives. Once you finish all the aforementioned processes, ask tenants for their passports (copy) and register them on the DTCM portal.
Besides, you can browse through these FAQs for holiday homes in Dubai to clear your doubts.
Things to Know Before Renting Holiday Home
Here is the list of facts that both the tenant and landlord must know before renting holiday homes or short-term rental properties in Dubai. It will also elaborate on why you should invest in a holiday home in Dubai.
Property Owners
- Property onwards must remember to register their guests/tenants on the DTCM official portal.
- Owners are also required to have adequate insurance to cover any damages caused by the guests.
- A certain amount of Tourism Dirham is charged to the guests while staying in hotel apartments, hotels and short-term rental properties. Property owners are responsible for collecting that tax and submitting it to the DTCM every month before the 15th of the current month.
- For leasing more than 9 properties as a holiday home at a time, owners are required to register as an official dealer.
- If you are permitting the tenant to sublease the holiday home, the contract signed by both parties must include this clause.
- Once rented, the owner is not permitted to use or occupy any part of the property till the contract expires.
Tenants
- DTCM does not provide any official structure of the short-term rental contract, but you must sign a written document before renting the property.
- The rent advertised is not inclusive of VAT and other additional charges.
- The tourism dirham is AED 10 per night for a standard room and AED 15 per night for a deluxe.
- The presence of furniture and utilities varies from property to property. Therefore, inquire about the facilities before signing the contract.
- Some short-term rental properties have a minimum stay condition.
Besides, here is more advice for choosing a short-term rental in Dubai that will help you throughout the renting process.
FAQs
Are short-term rentals legal in Dubai?
Yes, renting your property on short leases is legal in Dubai. However, it should be registered with DTCM, and other legal obligations should be catered to.
Can I rent an apartment for only one month in Dubai?
Yes, visitors and residents can rent an apartment for only one month in Dubai. These apartments are known as short-term rentals or holiday homes.
Is Ejari necessary for short-term rental?
No, Ejari is not required when opting for a short-term rental property in Dubai.
This was all about the legalities and process to rent a property for a short period in Dubai. Short-term rental is considered a feasible option to earn from your real estate. If you are also interested in earning from your real estate by renting it on a short-term basis, browse through properties for sale in Dubai.
Besides, if you are new to the Emirate, read our blog on renting a home for the first time in Dubai.
Stay tuned to dubizzle’s property blog for more information on how to rent a house in Dubai.
