Dubai is a top tourist destination. It offers a unique experience to its travelers by offering a variety of activities. Attractions like Dubai Mall, Burj Khalifa, and serene desert landscapes are a few of them. Tourists often prefer to shop from the Dubai Mall, and with the World Expo 2020, this trend has caught more fire. With the influx of more and more tourists, the holiday homes in Dubai have become a promising investment.
Dubai’s attractive tourist destinations, latest technological advancements, and thriving economy make investing in holiday houses a lucrative idea for generating huge profits.
The holiday homes in Dubai are residential buildings that are specially designed and equipped to host guests. These homes are usually rented out to travelers and visitors looking for a comfortable alternative to hotels on a daily, weekly, or sometimes monthly basis.
However, can you turn your residence or apartment into a holiday home just like that? No, there are some legal obligations, and you have to consider multiple aspects.
This in-depth guide will provide you with tips on how you can turn your property into a holiday home in Dubai.
What is a Holiday Home in Dubai?
Dubai offers a variety of holiday home options, such as townhouses, apartments, villas, and single rooms. A home away from home is what they offer in the best of forms, with all the amenities and services that are designed to meet the needs of visitors.
According to the guidelines established by Dubai Tourism and Commerce Marketing (DTCM), a holiday home is any fully furnished place that is leased out as an entire unit for short stays.
These short-term rentals in Dubai can be for a week, a month, or more. The primary difference lies in the fact that vacation rentals are exempt from the Ejari-regulated tenancy agreement, which is generally applied to long-term residential leases.
Owners or tenants of holiday homes in Dubai need to apply for a license from DTCM. It makes them eligible to rent the properties on a short-term basis. The vacation house must be registered with DTCM through tenants, licensed operators, or private owners.
Let’s understand the process for converting your property in Dubai into a luxury holiday home.
Step-By-Step Guide to Convert Your Property into a Holiday Home in Dubai
Making your property into a holiday home can be a highly lucrative decision if you target the ever-expanding tourism sector.
Similar to hotel apartments in the United Arab Emirates, holiday homes in Dubai are fully furnished, including cozy bedrooms, living rooms, kitchens, and toilets.
Additional facilities, like parking spots, gyms, swimming pools, and access to recreational facilities are also available.
Crafting an attractive design is a popular method for converting a residence into a holiday home in Dubai. These are the actions you should take to successfully transform your house into a sought-after vacation spot in Dubai.
Before proceeding further, make sure to look into the procedure for getting a holiday home permit in Dubai.
· Study the market dynamics
It is crucial to carry out in-depth research to determine the competition in the market of holiday homes in your area before starting your project. It will assist you in choosing the ideal location, kind of property, and pricing plan to draw in potential visitors. You can get help from registered real estate brokers or firms.
· Map your business plan
It is important to precisely identify your business plan for a holiday home. In order to ensure regulatory compliance and prevent fines or license revocation, this step is essential.
The specific activity that needs to be described in the case of operating a holiday home business is “Vacation Homes Rental.” This activity is covered by a tourism license, which allows you to legally rent out properties to tourists daily, weekly, monthly, or even annually.
You can carry out this commercial activity in compliance with UAE laws and within the legal framework by acquiring a tourism license.
· Apply for a holiday home trade license
You must first apply for a trade license, also referred to as a tourist license or holiday home trade license, in order to be granted permission to rent out holiday homes in Dubai. This license can be obtained from DED Dubai, the Department of Economic Development.
The following documents must be submitted with your application for a tourism license:
- A completely filled-out application.
- Copies of the owners’ passports.
- Two passport-sized, color pictures.
- Details about the property you plan to rent out for vacation.
· Apply for a Holiday Home Permit
For every holiday home, you have to acquire permission from the Dubai Tourism Authority DET in accordance with the guidelines and procedures (discussed later in the article).
Additionally, DET has launched a QR Code program for Dubai holiday homes. In the UAE, holiday homeowners are supposed to display a QR code at the entrance of their buildings.
It helps the visitors and guests scan the code and obtain information about the intended owner or operator of the holiday home.
The project also supports the DET authorities in control and inspection, guaranteeing adherence to protocols. The DET’s official website provides all the information about the QR code program.
Also, make sure to check the zoning regulations and to ensure compliance with all legal requirements, get guidance from a legal advisor who specializes in real estate and tourism legislation.
· File the Visa Application
In order to operate a holiday home rental business in Dubai, you must have a UAE visa. You can also sponsor other people’s visas if you hold a business license for the United Arab Emirates.
The choice to sponsor varies; it can be your partner, your parents, your kid, or even domestic helpers like housekeepers.
The number of visas which you can have is decided on the basis of your holiday home rental business. The significant factors considered in this case are company size, the business niche, and income.
In light of your circumstances, it is imperative that you seek the help of the appropriate authorities and follow the rules and regulations for filing the visa applications.
Procedure to Acquire a Holiday Home Permit in Dubai
The process for obtaining a Dubai holiday home permit is described below.
Required documents
- A photocopy of each owner’s passport
- Emirates ID of the property owner or tenants
- Tenancy agreement (for individual tenants)
- Letter of property management
- Certificate of Payment Completion
- A trade license in case the landlord is registered as a company.
- A photocopy of the Title Deed of the property and the owner’s authorization on the DET-approved form.
- An electricity bill by DEWA, either in the name of the owner or tenant of the unit, and it must be at least three months old as of the application date.
How to obtain a holiday home permit in Dubai
- Visit DTCM’s official website to log in to the Holiday Home system
- Log in to your account.
- Select “Add New.”
- After entering the required details regarding your real estate property, click “Continue Application” to proceed.
- Click “Continue Application” to proceed after uploading the required documents in accordance with the requirements.
- Wait for the acceptance or rejection of your application by a designated official.
- After receiving approval, finish the self-classification procedure and identify the mistakes, if any.
- Use the online payment method to complete your payment.
- An electronic permit will be generated upon payment of the fees. This permit must be clearly displayed at the property.
Cost of holiday home permit
You should expect the following charges in order to get a holiday home permit.
- The cost of the permit is 1,500 AED.
- The knowledge fee is 10 AED.
- The innovation fee is 10 AED.
Procedure for changing the permit information
If you want to make a few changes to the permit, you may follow the following steps.
- Go to DTCM’s official website to access the Holiday Home system.
- Open your account and log in.
- Select the “Amend” button, which must be placed next to the approved unit symbol.
- Choose a particular amendment, like changing the number of rooms, and fill out the necessary fields. Next, select “Continue Application” to move further.
- Use the online payment system to pay the fee.
- After the payment of the fee, the updated electronic permit will be generated. Printing this updated permit and displaying it in Holiday Home is important.
Procedure for canceling the holiday home permit
Read the instructions below to understand the procedure for canceling the permit of Holiday Home in Dubai.
- Login to DTCM’s official website to access the Holiday Home system.
- Sign in to your account.
- Click on the “Cancel” button, which must be placed near the approved unit symbol.
- Click “Continue Application” after selecting the reason for the cancellation.
- Use the online payment system to pay the fee.
- The system would update the information accordingly.
Procedures for Holiday Home Check-in and Check-Out
It is the duty of the owner of the property to register the check-in and check-out times of the guests on the DTCM website. The steps involved in following the procedure are listed below:
Check-in procedure
- Visit the DTCM website to access the Holiday Home portal.
- Open your account and log in.
- Select the “New check-in” button from the menu.
- After choosing “Add New” and entering all the necessary check-in and guest details, click “Continue Application” to move forward.
- Attach clear copies of the visitors’ passports (or, in the case of nationals, their GCC ID cards).
- After carefully reviewing the application details, click “Continue Application” to complete the guest check-in process.
Check-out procedure
- Visit the DTCM website to access the Holiday Home portal.
- Open your account and log in.
- Select “check-out” from the menu.
- Enter the necessary information to complete the check-out process.
- After carefully reviewing the application details, click “Continue Application” to complete the guest check-out process.
Apart from the aforementioned legal prerequisites, the owner of the property must also conform to the guidelines to make sure that their property is suitable for converting it into a holiday home.
How to Convert Your Property into a Holiday Home in Dubai—Expert Tips
A property needs to be prepared for a rental holiday home in Dubai in a few certain ways to make sure that visitors find it welcoming. Here is a guide on how you can convert a property in Dubai into a holiday home.
1. Deep cleaning
Begin by giving the entire house, including the bedrooms, common areas, and bathrooms, a deep cleaning. Don’t overlook the little things, like windows, upholstery, and carpeting, to make the space feel new and inviting. To get professional deep cleaning services, you may also contact house cleaning services.
2. Interior design and furnishings
One of the best ways to make a holiday home in Dubai is to décor it with good furniture. Provide short-term visitors with cozy and useful furniture for the property. Opt for a neutral design or a contemporary, aesthetically beautiful decor that pays homage to the local way of life.
3. Add essential facilities
Add basic facilities like kitchenware, towels, bedding, and toiletries. Make sure that every utility, gadget, and appliance is operational. For greater comfort, include amenities like Wi-Fi, a TV, and an air conditioning system.
Consider adding noise insulation to different parts of your vacation house to create a happy and serene atmosphere. It will improve the overall experience by reducing noise disturbances from outside.
4. Safety
Install smoke detectors, fire extinguishers, and a first-aid kit to ensure the safety of guests. Make sure every lock, including the ones on windows and entry doors, is reliable and safe.
5. Maintenance and repairs
In order to determine the house maintenance checklist, make sure to do a thorough inspection of the property. This includes making sure the HVAC units, electrical, and plumbing systems are in operating order.
Additionally, hiring professional house painting companies in Dubai is advised if you see chipping paint in your holiday home. By hiring a professional, you can be confident that your property will be repainted to a high standard, improving its appeal and general outlook.
6. Security
To improve the visitors’ safety and security, consider installing a security system or working with a reliable security company.
7. Regular guest communication
Be responsive to guest inquiries and provide them with all the information they need. Clear communication can lead to positive reviews and repeat business.
8. Insurance
Ensure your property is properly insured for short-term rentals, as traditional home insurance in Dubai may not cover the specific risks associated with holiday rentals.
9. Comply with tax regulations
Be aware of tax regulations related to short-term rentals. In many places, you may need to collect and remit local occupancy or tourist taxes.
10. Professional Photography and Marketing to attract customers
Your Holiday Home needs to be successfully marketed to attract potential customers. Follow these tips and tricks for effectively marketing your property.
· Professional photography
Hire an experienced photographer to take attractive, high-definition pictures that showcase the special qualities and features of your house from the inside as well as outside.
· Online listings
To broaden your audience and draw in a diverse range of potential customers, use well-known short-term rental marketplaces or real estate brokers such as Orchid Homes Real Estate. Make a compelling listing with a thorough explanation, captivating images, and reasonable pricing.
· Social media presence
To advertise your holiday home, it is important to have a significant online presence on social media sites. Engage prospective customers by sharing eye-catching photos, guest reviews, and vital details about the resort and neighboring activities.
· Reviews from Guests
Ask your guests to share their reviews and comments regarding their experience while staying at your property. Positive reviews are essential for attracting potential customers.
11. Enhance the guest experience and hospitality in holiday home
In order to improve the quality of the guest experience and offer outstanding hospitality at your holiday home, think about following these strategies:
· Include a Welcome Package
Set up a welcoming package for guests to help create a cozy and welcoming environment. Welcome them with essentials like drinks, food, personalized notes, and maps of the area so they feel important and appreciated.
· House rules and guest manuals
Make a guest guidebook with all the important information, including how to use the appliances and connect the Wi-Fi, emergency contacts, a list of neighboring attractions, and suggested dining spots. It will add value to the experience of the guests.
· Concierge Services
Provide guests with assistance with reservations, transportation, tours, and other needs by communicating with local service providers or by offering concierge services yourself. Adding convenience would improve the experience of the guests.
· Regular Improvements
Assess your property on a regular basis to find places that might need upgrades. Stay updated about the latest market developments and visitor preferences to make sure your holiday home stays competitive and desirable.
Advantages of Owning a Holiday Home in Dubai
A holiday home in Dubai is a beneficial investment in different ways. Here are some notable benefits.
Available for personal use
Owning a holiday home in Dubai allows you to relish the activities of the city at any time of your convenience. You can create a home away from home by retreating to your property for weekends or vacations and then rent it whenever you feel like it.
Rental income
Dubai is the ultimate destination for tourists, and the number of tourists it attracts is increasing day by day. Your holiday home can be rented out for a consistent rental income, particularly during the peak times of the year.
Diversification of the investment portfolio
Investing in a vacation property in Dubai is no less than an opportunity to invest beyond traditional assets. Short-term rental home in Dubai is one of the safest physical assets that might offer stability and consistent profits, mainly due to a highly growing Dubai real estate market.
Lifestyle benefits
Dubai provides top-notch facilities, entertainment, and cultural experiences together with a luxury lifestyle. Owning a holiday home allows you to relish the attractions of the city, restaurants, retail centers, and recreational activities.
Retirement option
Having a Holiday home in Dubai can be a great retirement choice, giving you a cozy and familiar spot in your post-retirement life. It provides the chance to enjoy freedom while relishing the city’s facilities, attractions, and services.
Real estate appreciation
Dubai’s real estate market has historically shown strong appreciation over the years, which can be an attractive investment opportunity. However, it’s essential to conduct thorough research and consider market conditions.
Business/networking opportunities
Dubai’s status as a global business hub means you may find opportunities to conduct business or expand your network in the region. Businessmen and professionals often choose Dubai for vacations; a short-term rental house gives you the opportunity to connect with such people.
Disadvantages of Investing in Holiday Homes in Dubai
While there are a large number of potential benefits to having short-term vacation homes in Dubai, there are some drawbacks to consider as well.
Seasonal Demand
Demand for holiday homes in Dubai can be seasonal, with peak periods during the tourist season. During off-peak times, it can be challenging to find renters, potentially leading to lower rental income.
High initial cost
Dubai’s real estate market is known for its high property prices. Investing in a holiday home in a prime location may require you to have a massive upfront investment, which may be beyond the reach of many investors.
Property management expenses
Managing a holiday home in Dubai can be complex. You’ll need to either hire a property management company or deal with maintenance, cleaning, and guest inquiries yourself, which can be time-consuming and costly.
Vacancy rates
High competition and an excessive supply of holiday homes can lead to elevated vacancy rates, which can negatively impact your rental income. You may find it difficult to consistently rent out your vacation home in Dubai.
Difficulty in selling
Selling your holiday home in Dubai may not be as straightforward as other types of real estate investments. It may take time to find a buyer; you can avoid such troubles by hiring a reliable real estate agent in Dubai.
FAQs
What are the possible restrictions to be considered before renting a Holiday Home in Dubai?
Yes, there are rules for the rental of vacation houses in Dubai. Owners of real estate must register their properties with Dubai Tourism and Commerce Marketing (DTCM) and acquire a holiday home permit. They have to abide by certain rules for guest registration, rental durations, and safety requirements.
Is there any tourism fee applicable for the Holiday Homes in Dubai?
Yes, there is a Tourism Dirham fee for vacation rentals. It is charged per room per night, irrespective of the number of guests. The fee varies based on the category of the vacation home.
The cost per room per night for Deluxe Holiday Homes is AED 15, whereas the cost per room per night for Standard Holiday Homes is AED 10.
What is the duration of validity for a Holiday Home permit in Dubai?
The duration of the holiday home rental permit is three months at the lowest and twelve months at the highest.
Can I sell my Holiday Home in Dubai?
Yes, holiday homes in Dubai are sellable. Owners of real estate are free to sell their homes whenever they want to. It is advised to consult a reputable, registered real estate agent to help with the sales process and guarantee a seamless transaction.
Which areas are popular for Holiday home investments in Dubai?
The Dubai Rental Market Report 2022 states that Jumeirah Village Circle, Dubai Marina, Dubai International City, and Deiraare are among the most sought-after locations in Dubai for holiday home investments. These locations attract tourists with a variety of facilities, activities, and scenic views.
Summing it up
We hope that now you know the process of converting your property into a vacation rental in Dubai. You can really experience the growing tourism business and generate profits by transforming your Dubai holiday home property.
You can start and run a holiday home rental business in Dubai if you follow the legal requirements, get the permissions, and abide by the rules devised by the government.
Every step of the process, from making your property ready to offering outstanding guest experiences, is vital to the success of your business.
Owing to Dubai’s rich lifestyle, varied culture, and expanding real estate market, purchasing a vacation property in this vibrant city can prove to be quite a wise financial decision.
Need help with your real estate investments in Dubai? Feel free to contact Orchid Homes Real Estate.
You can also read our Detailed Guide on How to Buy Hotel Apartments in Dubai