Steps to get your holiday home license in Dubai
Dubai boasts the presence of alluring tourist destinations. The magnificent buildings and skyscrapers never disappoint visitors. If you love shopping, then Dubai is the prime destination. Giant shopping malls and shopping festivals offer a unique experience. When people bunch up in Dubai, it provides a lot of business opportunities in the city. Over several ideas, why don’t you consider a profitable business in tourism?
The holiday home is a cutting-edge business idea in Dubai. The Middle East is well-formulated to explore the glory of various tourist destinations. To promote tourism, the government provides several accommodation facilities. Luxury hotels, apartments, and vacation home rentals are the common choice in Dubai. Real estate investors earn profit from high rentals. Today, the city has more possibilities for holiday homes or short-term rentals. Even a single property owner earns better returns while renting their property as a holiday home.
What is a Holiday home in Dubai?
The holiday homes are fully-furnished accommodations. Individuals or management companies rent these accommodations on short-term or long terms without issuing a tenancy contract. But, it’s essential to register with the DTCM (Department of Tourism and commerce marketing).
The DTCM allows to rent holiday homes on an annual basis, monthly, weekly, or even daily. It’s not necessary to have an Ejari-regulated tenancy agreement. But, it is significant to register with DTCM through tenants or licensed operators, or individual owners. After registering with the DTCM, you can lease the property to a third party for a short term.
It’s a fruitful business idea, where you get net income higher than regular rentals or annual rentals.
Advantages of starting a holiday home in Dubai
A vacation rental home covers the mortgage loan.
It’s additional revenue for property owners.
The owners can increase the price during peak seasons and certain events
The rentals are popular and legal
Dubai Expo offers a lot of opportunities for holiday homeowners.
Steps to get a holiday home license in Dubai
To get your vacation home rental license or holiday home license, it’s best to partner with Flybiz. Our business setup experts ensure easy navigation through application and approval processes.
Explaining the steps to get a license,
List the business activities
As a first step, you have to list the business on the license application form. You can check for the official business activities allowed in Dubai. Short-term rentals may not have several business activities, but still you have to list the business activities. Failure to list business activities may result in penalties. Our business setup specialists align business activities before submitting the license application.
Find a unique name
You should find a unique name for the holiday home and register it in the UAE’s registry. You can give your full name as a company name but avoid initials or surnames. The business name should comply with all the naming policies in the UAE. Never use any offensive language or refer to Islam.
After the above steps, submit the relevant documents to concerned authorities.
The documents are,
DCTM and DETD application forms
Passport copy of property owners
2 passport-size photos of property owners.
Floorplan and details of property
NOC from employer – If necessary
After the property registration, the authorities inspect it from time to time. They check whether your property meets the required standards. Moreover, it’s essential to display the DTCM registration certificate on the rental property.
Apply for the visa
Visa is mandatory to run a holiday home business in the UAE. Working with a business setup expert makes the process quick and easy. In this stage, you can apply for the visas of your employees, family members, and domestic staff. The number of visa depends on the business size and location.
Additionally, you can open a corporate bank account in Dubai.
Our business setup consultants streamline the steps and complete the license application process.
Cost of holiday home license in Dubai
While starting a vacation home rental business, you have to meet several expenses. Starting a holiday home is quite expensive from the license fee to the DTCM approval fee. The cost depends on a wide range of factors and requirements.
The license holder should pay around AED 300 as a separate allowance fee. It’s calculated for each room you rent. In addition, you have to pay AED 10 to 15 per bedroom.
Our experts provide a personalized cost estimation based on your needs.
What are the requirements to open a holiday home in Dubai?
Check the following parameters before opening a vacation rental home,
DED and DTCM are the central licensing departments
The license holders can rent homes at different locations but it has to be registered under DTCM.
The license holders are restricted to provide the rental and telephone line in case of emergency.
Rent the holiday home as a whole, you cannot rent partly or bed space alone.
It’s compulsory to get NOC from the unit owner
The owner must have experience in the hospitality sector.
DTCM will inspect the holiday homes to comply with the rules.
The licensed property should display an official registration certificate within the property.
Ensure consistent management of the licensed property.
You should provide water and electricity at no additional cost.
All set to launch your holiday home business in Dubai – Contact Flybiz business setup experts!
If you have the right knowledge, it’s easy to set up a holiday home in Dubai. Having prior knowledge, it’s significant to move your license application within the given time and free from errors.
To make it hassle-free, you can approach Flybiz business setup consultants. We work as a team to establish your holiday home business.
Our professional team is passionate about handling your license application. We also assist in opening a corporate bank account and suggest the appropriate financial institution.
On the other hand, we offer visa services. Our experts speed up the government formalities and work permits to start your business in the UAE.
We establish the company on your behalf. Sit back and plan your core business activities.
For more information on holiday home licenses and business setup, consult our experts at Flybiz.