With the emirate of Dubai burgeoning as a tourist hotspot and the upcoming Expo 2020 expected to bring in over 25 million visitors, the demand for short-term rentals or holiday homes in Dubai is also expected to grow. A lucrative opportunity for those looking to benefit from good rental yields, many homeowners and investors are taking the step to convert their property into a holiday home or purchase strategically located properties for the purpose of short-term rental. Today, MyBayut is in discussion with Khadija El Otmani, Co-Founder of Driven Holiday Homes, which specialises in short-term rentals in Dubai.
In this Expert Advice segment, Khadija sheds light on the necessary permits for holiday homes, protection for landlords of short-term rental properties and much more. Watch the video below to get a better idea about the short-term rental market in Dubai!
WHAT IS THE DIFFERENCE BETWEEN SERVICED APARTMENTS AND HOLIDAY HOMES IN DUBAI?
According to Khadija, there are a few notable differences between serviced apartments and holiday homes in Dubai. From the perspective of an owner, serviced apartments are usually located in the hotel buildings, which can push up the price per square foot of the property. On the other hand, guests or tenants will not find much difference between the two types of properties. However, Khadija mentions that holiday homes in Dubai will have more customised services for guests, excluding room service.
WHAT IS THE REQUIRED PROCESS TO LEASE HOLIDAY HOMES IN DUBAI?
Before renting out their property as a holiday home in Dubai, homeowners will need to obtain the relevant permit. This refers to the holiday home licence in Dubai, which is issued by the Department of Tourism and Commerce Marketing (DTCM). Homeowners can apply for the holiday home permit in Dubai through DTCM’s website, following the steps that are mentioned there. However, Khadija also reveals another fact that many homeowners and tenants are not aware of. Tenants can also apply for the DTCM holiday home permit if they obtain a no-objection letter from their landlord, and rent out the property on a short-term basis.
If you have a property that you would like to rent out as a holiday home, you would first need to connect the utilities and then apply for the DTCM holiday home licence online. The fees for the DTCM holiday home registration is AED 1,520. There will be an additional fee for the holiday home permit, which will depend on the size of the unit.
The DTCM holiday home permit fees for apartments and villas are as follows:
- Studio or 1-bedroom: AED 370
- 2-bedroom: AED 670
- 3-bedroom: AED 970
- 4-bedroom and above: AED 1,270
The holiday home licence by DTCM is valid for one year and must be renewed annually.
Alternatively, homeowners can seek the services of holiday home companies in Dubai such as Driven Properties, who will take care of the entire application process for them.
IS AN EJARI REQUIRED FOR HOLIDAY HOMES IN DUBAI?
Khadija provides an important clarification for holiday homes in Dubai and says that Ejari is not required for such properties, as they are managed by the DTCM.
When it comes to protection for landlords and tenants for holiday homes, Khadija mentions that certain steps need to be taken. Firstly, homeowners must have a good relationship with the holiday home operators in Dubai, which will ensure the smooth running and maintenance of their property. It’s also mandatory for homeowners to have insurance for their property. Finally, the operators must also establish a proper contract with the guests staying in the property, and a security deposit must be included in the price, to protect the landlord’s interests.
HOW CAN BUYERS IDENTIFY WHICH PROPERTY WILL PERFORM WELL AS A HOLIDAY HOME IN DUBAI?
There are certain key elements when it comes to identifying properties that will do well as Dubai holiday homes. First and most important, says Khadija, is the location of the property. Properties in residential leisure hotspots such as Dubai Marina and Palm Jumeirah are good choices for those who want to generate income from holiday homes. The facilities that are available to guests in the building or community are also essential in determining whether a property will work as a holiday home. Lastly, the best luxury holiday homes in Dubai will have popular landmarks nearby, whether it’s the Atlantis the Palm, The Beach at JBR, Dubai Mall or others.
Khadija is also optimistic about the stimulus that the Expo 2020 will bring to the holiday home market in Dubai. There will likely be new innovations and partnerships with other countries for holiday home operations. There are already new regulations being introduced by the government for the Dubai holiday home rental market to improve transparency and ease of operations. For instance, in January 2020, the DTCM clarified that developers and owner’s associations cannot restrict licensed holiday home operators from buildings and communities.
And that concludes Bayut’s Expert Advice segment on holiday homes in the emirate. We hope this discussion clarifies important aspects of owning holiday homes in the emirate, from obtaining the correct permits to identifying the best properties for short-term rentals.
ABOUT KHADIJA EL OTMANI
Khadija El Otmani has successfully worked within various fields such as freight and transport, logistics, food and beverage and real estate, among others. Inspired by the success of holiday homes in Paris, Khadija sought to bring the same to Dubai, by launching DXB Bound in 2014 before expanding the business through a partnership with Driven Properties, which led to the establishment of Driven Holiday Homes, which specialises in short-term and holiday home rental in Dubai.
ABOUT DRIVEN HOLIDAY HOMES
Driven Holiday Homes focus on short-term rentals in Dubai, allowing guests to enjoy the luxuries of a hotel in the comforts of a home. Whether it’s an apartment or villa, Driven Holiday Homes Dubai have a portfolio of upscale properties to choose from. Their comprehensive list of services includes finding occupants, taking care of legal agreements, scheduling cleaning and checkout, security checks and more. They also offer a range of services for the convenience of guests including chauffeurs, housekeepers, bookings for activities and more.
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