Short-Term Rental

Short-term rental involves leasing residential property for periods under one month, typically managed as holiday homes requiring specific licensing, higher operational involvement, and generating potentially higher yields.

Regulatory RequirementsDubai Compliance
DET licenseMandatory for all short-term rentals
Annual feeAED 1,520 registration plus per-unit fees
Tourism dirhamAED 7-20 per night collected
Building permissionManagement company NOC required
Operational CostsTypical Expense
Platform fees15-20% (Airbnb, Booking.com)
Management20-30% if professional operator
UtilitiesAED 500-1,500 monthly
FurnishingAED 30,000-80,000 initial
CleaningAED 150-300 per turnover
MaintenanceHigher due to guest turnover
Financial PerformanceRange
Gross yield10-18%
Net yield6-10% after costs
Occupancy rate60-75% typical
Seasonal variation20-30% high to low season

Related Terms

Holiday Home PermitProperty ManagementProperty Management AgreementFurnished PropertyTourism Dirham Investment Property

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