How to Get a Holiday Homes Rental Business License in Dubai, UAE?

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How to get a Holiday Homes Rental Business License in Dubai

The tourism sector in Dubai brings forth immensely lucrative propositions for those looking for possible opportunities to make more money. With time and the continuous governmental efforts, this Middle Eastern Emirate has become an ideal destination for experiencing East meets West adventures, taking in the splendor of the deserts, and going on opulent shopping vacations to the old souks, markets, and Dubai Mall in the downtown area. To rent out their properties as holiday rentals in Dubai, owners need to apply for a Holiday Home License.

More recently, the demand for holiday rentals in Dubai has increased exponentially—all thanks to the growth of Airbnb and other comparable vacation home operator services in the Emirates. Holiday homes and short-term rental properties present fantastic opportunities to earn revenues for property owners.

Homeowners can now market their houses as short-term vacation rentals through the Dubai Economy and Tourism Department and the Department of Tourism and Commerce Marketing (DTCM). 

On the other hand, listing houses without a proper license on platforms like Airbnb is strictly prohibited in Dubai. However, the good news is that, with the correct professional help and guidance, obtaining this license and any further approvals or visas that you may require is simple. 

Read on to learn how to get a Dubai holiday house license for a vacation property.

What is involved in owning a holiday rental business in Dubai?

The Dubai Department of Economic Development (DED) states that well-furnished accommodations are part of the holiday home rental market. Travelers and visitors can hire these accomodations for a day, a week, or even a month according to their requirements or duration of stay. These properties’ managers have a license allowing them to rent them out for a brief period.

Both Travelers and holidaymakers from around the world flock to Dubai every year. This influx of foreigners has increased the demand for business opportunities as offered by renting out holiday homes in the city.

Advantages of getting a Dubai short-term rental license

Twenty million tourists visit Dubai each year, contributing to the growth of the hospitality industry.

The license laws in the UAE have been streamlined lately, making it easier for property owners to enter the holiday rental industry. It is equal to an average 25–30% return on investment premium over long-term rentals in Dubai. Moreover, attractive returns suggest that there will be a spike in demand and reservations for vacation rentals in Dubai.

Starting a business in Dubai can be profitable. Enjoy 0% tax on all personal and company income in the United Arab Emirates. One more advantage of setting up shop in a free zone is that you can utilize any currency without limitations.

How to Obtain a Dubai Holiday Home License

Applying for your trade license is the first step toward launching your vacation home rental company. Even though the applicant already owns the property, a few details need to be submitted for your business to get registered with the DED. Given below are the requirements:

  •       Application form duly filled
  •       Prospective owner’s passport copy 
  •       Property details
  •       Two coloured passport-size photos

You need to have the Department of Tourism and Commerce Marketing’s clearance. The development and promotion of Dubai’s tourism sector are governed by this sector.

After registration, your property will go through routine inspections to make sure it’s upholding the required standards. Your rental property must have your DTCM certificate displayed.

Documents required in Dubai to launch a vacation rental company

You need to have a few paperwork to begin renting out vacation homes in Dubai, including:

  •       Passport of the owner
  •       Application for license duly filed
  •       Property particulars
  •       DED Trade License
  •       Certification from DTCM

How Can I Open a Holiday Rental Business in Dubai?

When you first start your vacation home rental business in Dubai, there are some protocols that you must follow. These include the following:

Selecting Your Business Venture

A vacation house rental agency is categorized as a “Vacation home rental” business activity by the DED.

 

Choose a name for your company

Choose the organization’s name in advance. When choosing a business name, a few rules need to be adhered to. It is also significant to remember that you are not allowed to use any names or phrases that offend or cause scandal.

Additionally, stay away from names that well-known companies currently possess. Avoid using any acronym for your name if you use it. Do not use any abbreviations. Use your entire name.

 

Obtain a license for a holiday home

A few permits need to be obtained before starting the business. The Department of Economic Development’s (DED) trade license is the first license to be obtained. 

 

Finish the Visa Application.

Operating a vacation home rental service in Dubai requires a UAE visa. A business cannot function if the necessary residential permit is not obtained.

If one has a visa, doing business in the UAE is easy.

How Can Sharjah Research, Technology, and Innovation Park (SRTIP) Help You Start a Holiday Home Business in the UAE?

SRTIP is among the most respectable institutions that help foreigners form 100% foreign-owned companies in Dubai. You can feel empowered and launch your business on your terms with SRTIP. Our professionals will walk you through every decision and point you in the right direction of what is best for your business in obtaining the business license . The SRTIP Accelerator is committed to helping you identify the most advantageous business options from the beginning to finding the most suitable investors.

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