Dubai’s tourism sector attracts millions of visitors annually. This creates a high demand for short-term rental accommodations that provide quality holiday home service. Many people have started running such businesses as these are quite feasible when it comes to generating income. This blog details all the requirements for starting a holiday home business.
Steps to Converting Your Property Into a Holiday Home
If you are also considering converting your secondary property into a holiday home in Dubai, follow these essential steps to have a successful start:
1. Understand the Regulatory Framework
Operating a holiday home in Dubai requires compliance with specific regulations set by the Department of Tourism and Commerce Marketing (DTCM) and the Dubai Economy and Tourism Department (DETD). Securing the appropriate licenses is crucial to operate legally and maintain high standards for guests.
2. Determine Property Eligibility
Not all properties qualify as holiday homes. Eligible properties typically include fully furnished apartments and villas that meet health and safety standards and are also well-maintained. Do not ignore this because adhering to the Holiday Home Rental Regulation guidelines is mandatory.
Additionally, it would be a good idea to consult the owners’ association (OA) if your property is in a managed community. You must confirm that there are no restrictions on short-term rentals in that area.
3. Obtain Necessary Licenses
Holiday Home License
Apply for a holiday home license through the DTCM. For this process, you will have to submit the following documents:
- Your Emirates ID
- Title deed,
- A No Objection Certificate (NOC) from your landlord – if applicable
Trade License
If you plan to manage multiple properties or operate professionally, obtaining a trade license is necessary to ensure compliance with business regulations in Dubai.
4. Comply with Safety and Quality Standards
Your property must meet specific safety and quality standards, including:
- Installing fire extinguishers and first aid kits.
- Providing essential amenities like beds, bedding, and linen.
- Ensuring the property is clean, well-maintained, and equipped with necessary facilities.
Keep in mind that regular inspections may be conducted to verify compliance.
5. Understand the Costs Involved
Operating a holiday home involves various fees that you will have to plan for, such as:
Tourism Dirham Fee
It is charged per room per night. Deluxe homeowners incur around AED 15 and for standard homes, it is AED 10 for the first 30 nights (of a guest’s stay). It is crucial to update the online Tourism Dirham system no later than the 15th of each month in order to avoid late fees.
Note: DTCM imposes a municipality fee of 10% on all bookings.
Annual Permit Fees
The DETD enforces annual fees of AED 300 per room plus AED 70 per listed home. For example, a 1-bedroom home incurs a fee of AED 370, while a 2-bedroom home is AED 670.
6. Register with the DTCM
Create an account on the DTCM Holiday Homes system and submit your application along with the necessary documents. The approval process typically takes about one business day. Ensure all information is accurate to avoid delays.
7. List Your Property
Once licensed, you can list your property on various platforms to attract guests. Ensure your listings are accurate, highlighting amenities and nearby attractions. High-quality photos and detailed descriptions can enhance appeal.
8. Manage Bookings and Guest Relations
To run your holiday home, you need efficient management of all the operations:
- Booking System: Use reliable booking management software to keep track of reservations.
- Guest Communication: Maintain prompt and courteous communication with guests.
- Cleaning Services: Ensure the property is cleaned and prepared before each guest’s arrival – ServiceMarket can help you get quality holiday home cleaning services.
9. Consider Hiring a Holiday Home Operator
If managing the property yourself is too much hassle, or is complicated, you may look into hiring a licensed operator. They can handle maintenance, marketing, as well as bookings for you. They also make sure your property is compliant with local regulations.
10. Stay Informed on Legal Obligations
Adhere to local laws, including timely payment of applicable fees and taxes. Maintain accurate records of all transactions and stay updated on any regulatory changes to ensure ongoing compliance.
11. Evaluate Financial Returns
During peak tourist seasons, a holiday home or an Airbnb can be quite profitable. So, converting your property into a holiday home and getting it all ready for the season would be wise. Make sure you consider the associated costs very carefully so that you have competitive pricing to get maximum bookings and profitability.
Once your holiday home is completely set up, all you need is efficient Airbnb cleaning management. For that, you can visit the ServiceMarket website, and book professional holiday home cleaning according to your preferred schedule.