How to Start a Holiday Homes Rental Business in Dubai?
Start a Holiday Homes Rental Business in Dubai
Dubai is famous for its luxurious lifestyle and vibrant tourism industry. The city is an attractive tourist destination for travellers globally. It is not a surprise that the demand for Holiday Homes Rental Business in Dubai is rising because of its stunning skyline, world-class attractions, and pristine beaches.
According to the stats, Dubai has received 4.67 million tourists in the first quarter of 2023. This stat is not the end: the global vacation rental market is booming. According to the other stats, the global vacation rental market is expected to increase by $111.2 by 2030.
As a business owner, it is the perfect time to set up Holiday Homes Rental Business in Dubai and become active in this thriving industry. However, starting a holiday rental business in this city is not an easy task because you must perform several steps and understand several aspects of this business.
We will provide an in-depth guide to Start a Holiday Homes Rental Business in Dubai. In addition, we will cover essential aspects of starting your holiday rental business in this city.
Benefits of starting a Holiday Homes Rental Business in Dubai
The hospitality industry is booming approximately twenty million tourists visit Dubai annually. Now, property owners have an easier time entering the vacation rental market due to the simplified laws governing licenses. In contrast to the long-term rental business in Dubai, it converts into an average 20 to 30 percent premium return on investment. This factor implies that demand for booking and vacation rental business in Dubai is on the rise.
Indeed, setting up a Holiday Homes Rental Business in Dubai is incredibly profitable. By starting this business in this city, you can immediately benefit from 0% corporate tax until a profit of AED 375,000* and no personal income tax.
There are uncountable benefits to establishing a holiday home rental business in the Dubai free zone. Zero currency restriction is the significant benefit you can enjoy by setting up a Holiday home rental business in Dubai Free Zones.
Dubai is one of the most-liked tourist and business destinations. Therefore, the tourism industry will further grow in the future. Hence, it is an ideal time to open a Holiday Homes Rental Business in Dubai.
Regulations for Holiday Homes Rental Business in Dubai
There are a few regulations that you must follow to operate the Holiday Homes Rental Business in Dubai. Below is the list of the regulations for Holiday Homes Rental Businesses in this city:
- The owner should provide necessities like water and electricity free of charge.
- Proper Care and Maintenance should be provided by the business to clients all the time.
- The visitors of the holiday home rental business must contribute 10% to the municipality tax.
- Standard and deluxe accommodations cost an extra AED 10 to AED 15 in tourism fees.
- Every vacation home business in Dubai must adhere to DTCM guidelines.
Requirements to Start a Holiday Homes Rental Business in Dubai
Apart from regulations, there are a few requirements that you must fulfill to start a Vacation home rental business in Dubai. Let us take a look at the requirements for beginning a holiday home rental business in this city:
- The authorities may enter and inspect your property to ensure compliance with extant regulations.
- You should submit data regarding the stays and visitors to the DTCM periodically.
- No business activity other than renting the home is allowed. You can install a telephone for the occupants to contact for emergencies. No other extra services are approved within the vacation or holiday home rental business license in Dubai.
- Partial renting is not allowed.
- Each rental home must be registered within the DTCM as a holiday home to obtain authorization to rent the homes for tourists and visitors.
- Registration certificates issued by the DTCM should be represented at each of the properties.
- There is no excuse for the maintenance and upkeep of the properties
- License issued by the DED and DTCM.
- Guests are liable to pay municipality tax at a 10 percent rate.
- You should have enough experience in the hospitality industry to begin a vacation or holiday home rental business in Dubai.
- NOC or No Objection Certificate from the owner is mandatory.
Documents required to Start a Holiday Homes Rental Business in Dubai
There are a few documents that you must gather before starting a Holiday Homes Rental Business in Dubai. The following is the list of all documents required for starting this business in this Emirate:
- Trade License from DED
- DTCM’s certification
- Your passport
- Duly Filed License application form
- Property Details
Apart from these documents, you might need more documents to start your Holiday Home rental business in Dubai based on several factors.
The process to start a Holiday Home rental business in Dubai
There are a few steps that you must follow to Start a Holiday Homes Rental Business in Dubai.Below is the list of steps to start your Holiday Homes Rental Business in this city:
1. Choose the business activities.
First, you must decide what business venture you want to commit to. Remember, any unlicensed business is illegal in Dubai, and performing these businesses can lead to consequences. Therefore, you must select business activities to get the license. If you decide to begin a Holiday home rental Business in Dubai, the business will fall under the “Vacation home rental” category in the DED.
2. Choose the business name.
After choosing the business activities, you should select an attractive business or trade name for your Holiday home rental Business in Dubai. Remember, the name must be registered with the relevant authority and abide by the laws of the company’s name in Dubai.
3. Obtain license
There are a few licenses that you must obtain before starting your Holiday Homes Rental Business in Dubai. The trade license is the most essential license for this business. However, you must also get the certificate from the Department of Tourism and Commerce Marketing (DTCM) because it is crucial for random inspections.
4. Get the visa
Lastly, you should apply for a UAE visa for yourself, your family members, or your employees. Remember, you are not allowed to start your Holiday Home Rental business without a residence visa in Dubai. Therefore, you should apply for this visa.
How Can Flyingcolour Help You?
Starting a Holiday Homes Rental Business in Dubai can be incredibly profitable. However, you must require expert guidance. Flyingcolour Business Setup comes with expertise to help you start your vacation home rental business in Dubai. In addition, we can clear any doubt about the formation of this business in Dubai.
To learn more about the Starting a Holiday Homes Rental Business in Dubai, book a free consultation with one of the Flying Colour team advisors, simply call +971 50 5585305 or send WhatsApp messages to +971 4 4542366. you can also drop an email to info (at) flyingcolour (dot) com.
*Please note that this article was published on 20/03/2024 by the federal policies and updates at the time of writing. For the latest info please talk to our consultant.
