Holiday Home License Dubai : Benefits and Process Guide 2024

Holiday Home License Dubai

Table of Contents

The Holiday Home License Dubai opens new doors for businesses looking to provide these budget-friendly accommodations with a controlled and prosperous market. Dubai is known as a top destination for travelers worldwide, annually attracting a crowd of tourists from different countries looking for holiday enjoyment.

While the city offers numerous family-friendly hotels, their high prices are not always affordable for everyone. Therefore, tourists often opt for more economical options like rented apartments and homes. A vacation home rental business is a great option for property owners in Dubai.

What are Holiday Homes?

Holiday homes, often known as vacation properties, are retreats where people go to escape the routine of their daily lives. Typically located in destinations famous for their natural beauty or tourist appeal, these residences offer a home-like environment.

Unlike hotels, holiday homes provide more privacy and space, often featuring amenities like kitchens, living rooms, and multiple bedrooms. They are ideal for families or groups seeking a comfortable stay during their vacations.

The appeal of holiday homes is in their ability to provide a personalized, cozy experience. Unlike the nature of hotel rooms, these homes are designed to feel welcoming and intimate, often reflecting the local culture and aesthetics.

Holiday homes can range from beachfront villas, rustic mountain cabins, to chic urban apartments, offering a wide budget, offering a unique way to experience a destination, allowing travelers to live like locals.

Benefits of Starting Dubai Vacation Homes Business

Dubai Vacation Home Business

Dubai is ranked as one of the world’s top cities for holiday homes. A recent Khaleej Times study ranked Dubai as one of the best cities globally for holiday homes, with the cost of living for families much lower than in other popular vacation spots like Rome, New York, Lisbon, and Marbella. Following are a few more benefits that you can enjoy if you obtain a holiday home license in Dubai and start a vacation home business.

1. Increasing Prices in Demanding Season

Dubai year-round popularity means there are times when vacation homes are in high demand, making them rare. During these peak periods, prices can be raised as reservations are made regardless of cost.

2. Holiday Homes Generate Higher ROI

The vibrant city life of Dubai ensures that holiday homes are not just a source of stable income but also a profitable investment in every sense.

3. Retirement Plan

Considering the growing economy and future plans of Dubai, owning a property that generates income can provide considerable returns today and more in the future. This opens the door for a comfortable and worry-free retirement.

4. The Rise in Demand

As the city enhances its infrastructure, natural beauty, and a vast shopping market, it continues to draw more tourists, making vacation rentals increasingly popular.

5. Qualify for Golden Visa

Owning a property in Dubai worth over 2 million dirhams qualifies you for a golden visa in the UAE, offering numerous fantastic benefits. This means you can enjoy two benefits altogether, a golden visa and a steady income from your holiday home.

6. 100% Ownership

New regulations by the Dubai government now allow for full ownership of homes on the mainland, which is a noteworthy and attractive change.

How to apply for a Holiday Home License Dubai – Process

Dubai Vacation Homes Business

Obtaining a holiday home license in Dubai is quite easy, and RFZ can help you get the license in no time. Following are the basic steps for opening a holiday home in Dubai.

Step 1: Choose Your Business Activities

Decide on the specific services your holiday home business will offer in Dubai. This could include property rental, guest management, and additional amenities or experiences for guests.

Step 2: Select a Company Name

Choose a unique and relevant name for your holiday home business. Ensure it follows Dubai naming conventions, avoiding offensive language and references to religious or political groups.

Step 3: Submit Documents

Gather and submit the required documents, such as proof of identity, business plan, and property details, to the relevant Dubai authorities for your holiday home license application.

Step 4: Apply for a Visa

If you are not a UAE resident, you need to apply for a visa. This step is important for managing your holiday home business in Dubai legally and involves providing personal and business-related documents.

Step 5: Open Business Bank Account

The next thing to do is to open a business bank account for your holiday home rental business. This will facilitate effective financial management and simplify the year-end tax preparation process if applicable.

Documents Required to Start Dubai Vacation Home Rental Business

Following are the documents that are required to get the holiday home license in Dubai.

  • A floorplan and specifics of your property
  • A completed application forms
  • Two passport-sized color photographs
  • Photocopies of the passports of the intended shareholders
  • Authorizations from the Dubai Department of Tourism and Commerce Marketing (DTCM)

Cost of Setting Up a Holiday Home Company in Dubai

Starting a holiday home company in Dubai has some basic costs. First, you need to pay for the right licenses, like the one from the Dubai Tourism Department. You also have to spend money on legal stuff and setting up your business. It is smart to think about these costs when planning your budget.

The starting cost of the holiday home license in Dubai starts from AED 13,000. Also, there are regular costs to keep the business going. This includes looking after the homes, advertising them, and paying people who work for you. These costs change depending on how big your business is. Having a plan for these expenses is important so your holiday home company can do well in Dubai.

The license cost doesn’t include the cost of the property and approvals cost, this cost only covers the cost of the holiday home license Dubai.

DTCM Holiday Home Rental Regulations

If you are interested in leasing your home as a vacation rental in Dubai, you are required to apply for a holiday home license through DETD and DTCM, with an annual renewal. There are a few regulations by the DTCM department.

  • As per Dubai regulations, holiday rentals specify that a building must have a permit to be used for holiday home leasing.
  • Licenses are also mandatory for property owners.
  • It is compulsory for each holiday homeowner to have insurance for their property. Many opt for services from holiday home operator companies to manage their property’s reservations, maintenance, and marketing. These operators are responsible for drafting agreements with guests, including a security deposit to protect the owner’s investment.
  • During the validity of their license, vacation homeowners are not permitted to stop renting their properties, whether temporarily or permanently, without previous approval from DTCM.
  • A holiday home in Dubai must be equipped with:
    1. Bedding
    2. A fire extinguisher
    3. Linens
    4. A first aid kit
    5. An emergency exit plan
    6. Beds
    7. A prayer mat
    8. A safe
    9. Fully opaque curtains
    10. A telephone

FAQ’s

Q1. What is a DTCM License?

Ans: A DTCM License is a permit issued by Dubai Department of Tourism and Commerce Marketing (DTCM). This license is essential for businesses operating in the tourism sector, including hotels, tour operators, travel agents, and holiday home rentals. Obtaining a DTCM License confirms agreement with Dubai tourism industry regulations and standards and is important for legally operating such businesses in Dubai.

Q2. What are the types of holiday Homes Properties?

Ans: Holiday home properties in Dubai can be categorized mainly into Standard and Deluxe.

  • Standard holiday homes offer basic amenities and services suitable for budget-conscious travelers.
  • Deluxe holiday homes are more chic, offering premium amenities and services for those seeking luxury accommodation.

These classifications help guests in choosing properties that match their needs and expectations.

Q3. Do I need a License from DED to start a holiday home business in Dubai?

Ans: Yes, to start a holiday home business in Dubai, you need to obtain a license from the Department of Economic Development (DED) in addition to the DTCM license. The DED license is a general business license required for any commercial activity in Dubai. It ensures that your business observes local economic regulations and standards.

Q4. Which Approvals Required to Start a Vacation Rental Business?

Ans: Approval required to setup a vacation rental business are:

  • Smart Social Platform Approval
  • DTCM Holiday Homes Approval
  • RERA Approval

Summary

Renting a holiday home in Dubai involves a clear process. Property owners must obtain specific licenses and approvals, particularly from the Department of Tourism and Commerce Marketing (DTCM) and the Real Estate Regulatory Agency (RERA). These regulations ensure that properties meet safety, health, and zoning standards, providing a secure and enjoyable tourist experience.

Compliance with these rules not only upholds Dubai high standards in tourism but also promotes sustainability and environmental responsibility. For anyone looking to rent out their property in Dubai, understanding and following these guidelines is necessary for a successful holiday home business.

Setup your holiday home business in Dubai with RFZ

If you are planning to set up a holiday home company in Dubai or obtain a license, a trusted Corporate Service Provider, RFZ is the best choice!

At RFZ, we offer personalized help to people according to their requirements. We can assist with everything from creating a company to providing PRO services, obtaining any business license, managing finances, and ensuring everything is as per the regulations of the UAE government.

Our experienced team will give you trustworthy advice at every step of your business journey in the UAE. Are you ready to make your business dreams a reality? Partner with RFZ, and let us do it together.

For a free consultation, contact us at +971 4 589 0815. You can also send us a WhatsApp message at +971 4 589 0815 or email your questions to info@rfz.ae. We are here to assist you!

Umber Awan
Umber Awan

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