What you need to know before renting an apartment daily in the UAE. Read the rules and regulations for renting apartments in Dubai.
To rent apartments in Dubai on a daily basis, the owner needs to obtain a license and permission to operate a hotel. Each guest must be registered in a particular system and pay a monthly tourist tax. We will tell you more about how to rent apartments in Dubai by the day in this article.
Daily rental activities are regulated by the Department of Tourism and Commercial Marketing (DTCM). To have the right to rent out apartments for daily rent, the owner must obtain a license – Holiday Home Permit. In the third quarter of 2023, it cost AED 1.5 thousand (USD 408 thousand).
An owner can register up to 8 properties on the Holiday Homes portal. For each of these residences, you must additionally obtain a permit – Unit Permit. It is also issued by DTCM. The cost is calculated depending on the number of bedrooms – AED 70 (USD 19) for the entire apartment + AED 300 (USD 82) for each bedroom.
To register an apartment the owner needs:
If you paid via DET, the payment will be confirmed automatically. If you made a bank transfer, the payment will need to be confirmed:
Documents that the owner needs to upload to the Holiday Homes portal:
Tenants who rent apartments long-term can also apply for a Holiday Home Permit for this apartment and rent it out on a daily basis. Before this, the tenant must obtain permission from the owner. Only one object can be registered. In this case, additional documents will be needed:
The permit is valid for a year. If it is not renewed on time, the owner will have
to register on the portal again.
30 days before the permit expires, a notification will appear in your personal account on the Holiday Homes portal. To renew your permit you need to:
The owner must register guests and upload documents and their personal details to the DTCM website at the time of arrival.
A tourist tax – Tourism Dirham – is charged per night of stay in the amount of AED 10 (USD 2) for each bedroom. Tax must be paid no later than the 15th of the next month. For example, tax for June is paid until July 15.
The owner must indicate the amount of the tourist tax on the receipt or any other document confirming the rental payment. The amount is paid as a separate item – Tourism Dirham.
If the owner lives in the apartment, no tax is charged for this period, but you will still have to register for DTCM. If one group of guests stays in an apartment for more than 30 days, no tourist tax will be charged for this period.
The ad can be published on special services such as Booking, Airbnb, PropertyFinder, VRBO, TripAdvisor, etc. On these sites, guests can book apartments online. You can also specify additional amenities, such as remote check-in. To eliminate the risk of double booking for the same dates on different portals, you can set up synchronization.
To understand what the average daily rental yield will be for one-bedroom apartments, let’s make calculations. As an example, let’s take one of the most popular areas among tourists – Downtown Dubai.
From the amount mentioned above, we subtract:
Taking into account all these costs, owners can count on approximately AED 175 thousand (USD 47.6 thousand) net profit per year.