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August 1, 2023

How To Start Holiday Home Business in Dubai

Starting a holiday home business in Dubai can be a great way to make money while helping others have a memorable and enjoyable stay there.

Today, we’ll discuss some key steps to start a business of holiday home in Dubai. From understanding the local regulations to advertising your holiday home, we’ll cover everything you need to know to get your business off the ground.

DTCM holiday home registration

A holiday home business in Dubai can be a great investment opportunity. Holiday homes are furnished properties rented out to tourists on a short-term basis. To start a business of holiday home in Dubai, you must register your property with Dubai Tourism and Commerce Marketing (DTCM).

The process for registering a holiday home permit in Dubai is fairly simple.

Firstly, you need to log into the Holiday Home Portal. Next, you must add a unit, submit all the necessary documents, and fill out the application form. After this, you must add a self-classification of the unit and pay the required fees.

The DTCM also requires you to renew your holiday home permit yearly. Renewing a permit is the same as registering for the first time. If you fail to renew your permit on time, you must reapply for the permit and re-register the unit as a holiday home.

Remember, the DTCM has specific regulations and requirements to comply with before registering your holiday home. It’s important to read and understand all the regulations to avoid any legal issues in the future.

DTCM holiday homes regulations

Knowing the Department of Tourism and Commerce Marketing (DTCM) regulations is important if you plan to start a holiday home business in Dubai.

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The DTCM has published a comprehensive Guide for Holiday Homes, which addresses the details required by the Regulations and technical and operational procedures for undertaking the Holiday Home activity. All individuals, establishments, companies and parties must adhere to the Guide.

It is important to note that the Guide will be updated occasionally and that regular reference should be made to DET’s website for the updated version. The Guide is the first edition of 2022. Adherence to the DTCM regulations ensures that the business of holiday homes is legal and compliant and provides guests with a safe and enjoyable experience.

Some of the key requirements include,

  • Obtaining a DTCM permit
  • Adhering to safety and hygiene standards
  • Providing adequate insurance coverage
  • Following rules related to noise and nuisance

Note: check regularly for new updates about holiday home regulations.

DTCM permit for a holiday home

Once you have completed the registration process, the next step in starting your holiday home business is to obtain a permit from DTCM. The DTCM permit for a holiday home is necessary to operate your business in Dubai legally.

When applying for the permit, ensure you enter the DEWA account number, not the premises number.

If you are a tenant, the permit issue and expiry dates must match the tenancy contract dates, whereas, for operators, the permit issue and expiry dates must match the dates of the Property Management Letter if an attorney or representative signs the Property Management Letter, a formal Power of Attorney document and the representative’s passport copy must be attached.

In addition to this, additional individual unit documents may be requested if the title deed is for the entire building. Relevant documents, such as the building completion certificate and landlord NOC, must be submitted along with the application. By law, holiday home permits must be displayed in the unit, so make sure you display them properly.

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You also have to submit the essential documents after adding the units, including,

  • Title deed or sales purchase agreement copy and payment completion certificate
  • Passport copy or Emirates ID of the landlord
  • Trade License (if registering as a company)
  • Emirates ID or passport copy of the authorized signatory (if registering as a company)
  • Property Management Letter as a downloadable document (if you are an operator)
  • Current Dubai Electricity & Water Authority (DEWA) bill
  • Tenancy contract (for tenants)
  • Ejari documentation (for tenants)

Note: when entering the DEWA account, enter the account number, not the building or unit premises number.

How much is the DTCM holiday home permit fee?

To operate a business of holiday homes in Dubai, homeowners need to obtain a holiday home license from the Department of Tourism and Commerce Marketing (DTCM). Tenants can also apply for the DTCM holiday home permit, provided they have a no-objection letter from their landlord.

Regarding the DTCM holiday home registration fees, there are separate permit fees for apartments and villas. The permit fee for an apartment is AED 1,540 per unit, while for a villa, it is AED 3,080. These fees are also subject to change, so staying updated with the latest information from the DTCM is advisable.

It’s important to remember that the DTCM holiday home permit is valid for one year and must be renewed annually; otherwise, holiday home operators will have to register for the permit again. After a year, the applicants will receive a notification 30 days before the permit’s expiry.

What is the maximum number of units an individual can operate as holiday homes?

According to Dubai Tourism and Commerce Marketing (DTCM), homeowners can register up to 8 holiday home units. However, it is important to note that tenants can only add 1 unit. It is crucial to abide by the DTCM regulations and guidelines to avoid penalties or fines.

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In addition, the DTCM has a strict code of conduct that needs to be followed by holiday home operators. They need to ensure that their properties meet all safety and security requirements. Operators also need to provide adequate services and facilities to guests, including

  • Customer service
  • Clean and well-maintained properties
  • A detailed list of services and facilities provided

Before deciding on the number of units to operate as holiday homes, operators must consider the costs and resources required to manage each property effectively. It is recommended to start with one or two units initially and gradually expand once the business is established.

Overall, Dubai holiday home operators must follow the regulations and guidelines set by the DTCM to ensure a smooth and successful business.