In terms of defining Holiday Home, it is classified as furnished accommodation owned by management companies or individuals which is rented on short or long terms without the issuance on tenancy contract, and should be registered with DTCM.
How Holiday Homes are the newest trend in Dubai, UAE?
Dubai always known for its Real Estate market, investors are heavily investing in both commercial and residential properties. Added with Tourism in Dubai increasing every year, apartment owners can benefit now from renting their own units as holiday homes in Dubai. With Expo 2020 short term rental demand has significantly increase in the market, investors and tourist prefer rather being engaging in hotels or annual lease terms.
According to the studies the net income from Holiday Homes are expected to be higher versus the annual rent as regular unit rental in Dubai.
Consider it a country estate, individual retreat, or a home far from home, holiday homes are trending the new approach on procuring a profit on your property.
Holiday Home Management Companies
In Dubai the properties are usually managed by Property Management Companies, however in the era of short terms renting Holiday Home Management Companies are having a bigger reach and adequate marketing to showcase your Holiday Home in Dubai.
As the market, UAE is well known to adapt newest trends and action to maintain the country to keep with top cities by being innovative and creative. Studies show Holiday Homes are soon becoming the important and fast moving concept in Dubai contributing to more tourism attraction and development.
Setting Up Holiday Home License in Dubai
The regulations of incorporating a company with License of Holiday Home is regulated by Department of Tourism and Commerce Marketing (DTCM), this license allows Holiday Home Management Companies to engage with home owners and market the properties for short term or long term rentals. Offering apartments in Dubai is only possible commercially with the license, allowing the apartments or units to be rented out on daily, weekly, monthly or annual basis. The agreement has to be signed between the Holiday Home Management Company and Tenant, registered with the authority to advertise it.
Holiday Home License Company has to register themselves with the authority with annual registration cost approx. AED 300 per room and AED 70 each room registration. Along with the room and agreement registration the Tourism Fees is payable.
Procedure to Setup Holiday Home License in Dubai
Mayank Bhagat, an expert on UAE Business setup and has hands on experience on opening corporate and individual structures in Dubai Mainland, facilitating immigration and other authority’s approval work.
Initiating from Trade Name Reservation, Initial approval from Department of Economic Development, Dubai to court notarizations and arranging Individual or Corporate Local Sponsor to safeguard your interest with all UAE laws and regulations, Mayank shall guide you to adequate interest.
Trade Name Reservations
In my opinion, an advice by a business consultant is highly recommended and if you feel that you need to get a right kickstart into getting your business startup in Dubai, I would love inviting you for coffee and giving you extra free tips on doing it just right.
About the author
Anoop is an expert on UAE Business setup and has hands-on experience on company incorporation, facilitating immigration and other authority’s approval work including Maid Visa, Family Visa and Resident/Investor Visa in Dubai. His other specialties include sole proprietorship investment in DIFC and Information Technology related setups in DSO. He is available via email on [email protected] or direct call on +971 50 911 0516