Dubai is one of the most popular tourist destinations in the world, and for good reason. It has a vibrant culture, beautiful weather, and many interesting attractions to offer. However, it can be expensive to visit Dubai on vacation. Therefore, monthly short-term property rentals are popular amongst tourists and residents in Dubai past few years.
The Process
Whether you’re looking for a short-term holiday home, or to generate additional income from your property – renting on a yearly basis is something that more homeowners are now considering. With the benefits of flexibility and increased returns – Texture presents an overview of what it takes in Dubai to have properties be rented out as short-term rentals.
The process begins with understanding which permits one needs when leasing their property (e.g., tourist visa). After securing all necessary documentation, owners must then decide if they want monthly or shorter term rental contracts where prices vary accordingly based upon time contracted at rates per day/week/month etcetera depending on how long renters wish to stay at each location.
Renting a property for short-term stays in Dubai is very common. Residents of the United Arab Emirates enjoy all that this bustling city has to offer and want access anytime they please, which means renting it on an as needed basis. The properties usually come furnished or serviced with utilities such as water, electricity and internet included – at no extra charge!
Renting a property on Airbnb is much different than renting out your house for the holidays. For short-term rentals, you must rent the entire building or unit and not just part of it like an apartment in mixed use buildings.
What are the advantages?
What are the advantages of short-term rental contracts in
Dubai? Unlike long-term leases, they offer landlords more flexibility because
with a shorter lease period they can always rent their property for the
duration that suits them. What’s more is tenants get to enjoy lower prices as
well since it’s not uncommon for these days where you see demand and seasonal
changes!
Both landlords and tenants in Dubai benefit from renting out properties on a
short term basis like this. Landlords have an increased level of control over
how much money they make from each month by adjusting rents depending on season
or demands – but also giving themselves some cost certainty if needed too due
to being able to set up monthly payments instead than just one large upfront
payment. Tenants also
Furnished Property
Renting a furnished property in Dubai is an excellent idea,
but you may want to consider the short-term v. long-term rental dilemma before
signing on the dotted line!
In detail: Tenants living in rented accommodation are faced with two options
for home ownership – buying or renting their tenancy agreement and furnishing
it at their own expense. With this option comes hassle of set up costs
including things like utilities which can be expensive as well as furniture
shopping where prices vary drastically from store to store depending on what
type of product desired such as beds, dressers etc… The other alternative available
is opting for a short term contract by choosing one that has all these extras
included meaning no need purchase any household appliances (i.e fridge)
ourselves
Permits
For those looking to lease their properties on a short-term basis, Dubai is the perfect place. Homeowners in need of DTCM permits can either apply for them individually or employ the services of licensed operators who will take care all process work involved with obtaining these permits.
For individual operators, such as homeowners or tenants, the first step is to register themselves on the DTCM website. They can do so through our Holiday Homes section of their website and list that they are a ‘Homeowner’.
A registration on the DTCM website is a tedious process requiring meticulous attention to detail. For example, individuals will need copies of their Emirates ID or passport and fill out all required information in order to register as an individual operator. The fee for this service is AED 1,520- which can be costly if you are not careful!
Since registering with DTCM carries its own set of responsibilities and obligations that must be fulfilled before one becomes certified by them; it pays off knowing what’s involved beforehand so there won’t be any surprises down the line when these requirements come up again- like during reregistration periods every time your license expires (which would also require another round payment).
Once registered on the DTCM website, a homeowner can apply
for the necessary permit. In order to have more permits available, they will
need to get their hands dirty and register as a professional operator by
getting licensed with TREC.
Homeowners should bear in mind that they can apply for DTCM permits up until
eight properties before needing an additional trade license from TREC
Benefits
If you are an avid traveler, then this is the perfect opportunity for you to experience Dubai without having to leave your home. Homeowners can advertise their property on property portals which allows guests to filter between properties available for daily, weekly and monthly rental. Bear in mind that the entire unit must be rented out—the homeowner cannot occupy part of it at the same time!
As per the Dubai Tourism and Commerce Marketing (DTCM), operators for short-term rental properties in Dubai should have insurance that covers risks posed to guests, the property or building. For apartments in particular, tenants are advised by DTCM to inform management beforehand of their intent on renting out space through a third party site.
Contract
It’s important to know that there is no set template for short-term rental contracts, which must be drawn up between the operator and guest. However operators need to register all guests by checking them into their property on the DTCM system.
One of the taxes charged in Dubai is Tourism Dirham. It’s levied by hotels, hotel apartments and short-term rentals to help fund trade and tourism development.
Tourist Dirhams
Operators of properties on short-term lease in Dubai will now be required to collect Tourism Dirham from their guests, on behalf of the DTCM. Operators must pay the total amount collected for each month by 15th day following that month.
The Department’s recent addition mandates operators who own or operate property with a temporary license take responsibility for collecting and reporting tourism dirhams from visitors staying at their establishments as well as paying any taxes owed to authorities within 30 days after meeting these criteria
For short-term rentals in Dubai, Tourism Dirham is charged per night. The amount that is charged depends on the type of property: standard or deluxe. Properties are classified when applying for a DTCM permit to determine how much they should be taxed each month as well as what types of fees will apply.
The Tourism Dirham fee is a government program that calculates the cost of living for guests staying at hotels and motels. The operator must charge this additional amount to their guest in order not to break any laws or get fined by the DTCM system.
