The lucrative nature of Dubai’s tourism sector makes it a desirable location for tourists looking for a distinctive experience. Because of Dubai’s cutting-edge technology, opulent tourism attractions, and thriving economy, investing in vacation homes could be a smart way to make an investment.
Holiday homes in Dubai are residential homes that have been decorated and furnished to house short-term visitors either on holiday or for business. These homes are often rented out on a daily, weekly, or monthly basis to vacationers and business travellers seeking a convenient and comfortable lodging option. Want to convert your property into a holiday home? – You can consult property management services to aid you in further procedures for a better return on investment.
Find out if your property is eligible for a short-term lease
The very first step would be to find out if your property is eligible for a short-term lease or not. According to the Dubai Department of Tourism and Commerce Marketing (DTCM), all unit types are acceptable for short-term leasing as long as they are not hotel apartments. Villa owners are also permitted to rent their homes given that they are located in a gated neighbourhood with at least four other villas. Read on to know what are the essential steps.
Get a holiday home permit
The next step would be to get a holiday home permit. Owners must obtain the necessary permit before renting out their home as a vacation rental in Dubai. The Department of Tourism and Commerce Marketing (DTCM) issues the holiday home licence in Dubai. You can apply for a holiday house permit in Dubai through the DTCM website. If a tenant secures a no-objection certificate/letter from their landlord, they can also apply for a DTCM holiday home permit and turn it into a temporary rental unit.
The cost to register a DTCM vacation home is AED 1,520. The cost of the holiday home permit will be additional and will be determined by the size of the unit.
Calculating the expenses
It is important to know the expenses you will be having while leasing out your property as a vacation home. The tourism Dirham tax for holiday home rentals in Dubai is calculated on the basis of the nights spent by the visitors and the number of rooms occupied. Thus, per night and per room fees will be applicable.
The classification of the vacation home (regular or deluxe) is also taken into account. The monthly tourism Dirham fee is to be paid to the DTCM by the 15th of the next month. The cost of a room per night at a Deluxe Holiday Home is AED 15, whereas a room at a Standard Holiday Home is AED 10.
To reduce expenses, investors opt for off-plan properties as they have a higher return on investment than ready properties. It is advised to be on the lookout for an off-plan property for sale in Dubai if you are seeking to rent out a holiday home.
Preparing the property
Preparing your property is one of the most necessary aspects if you want a successful vacation home since the aesthetics, services, and comfort will attract visitors. Provide the tenants with the same bedding and amenities as a hotel room. Pay attention to the electrical setup and maintenance of the rooms.
In order to maintain a high reputation, the following should be present in the rooms:
- Coat hooks
- Blackout curtains
- A laundry basket
- A vanity bag having grooming supplies and toiletries.
List your property
Now that you are done with all the above-mentioned procedures, attracting tenants is the final task. Post an intriguing listing with a thorough description, eye-catching photographs, and affordable pricing. Select from the best real estate agents in Dubai to facilitate the listing procedure.
Owning a vacation house in the cosmopolitan city of Dubai can be a profitable investment due to Dubai’s booming real estate market, numerous cultural experiences, and extravagant lifestyles. Make sure to follow our guide properly and consult professionals to gain the best out of your property.