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Opening a Holiday Home business in Dubai

Открытие бизнеса Holiday Home в Дубае

Dubai, with its luxurious lifestyle, booming tourism industry, and diverse attractions, is an attractive destination for travelers. It is not surprising that the demand for holiday apartments and temporary accommodation is growing here. This market is projected to grow by $111.2 billion by 2030.

If you are considering starting a business in the UAE, now is the perfect time to open it by renting holiday homes, the so-called Holiday Homes.

About holiday homes

Holiday Home is a furnished apartment for rent to tourists for a short period of time. Suitable for fans of a personalized travel experience. Permits for such houses are issued by the Dubai Department of Economic Development and Tourism (DET) 

Luxury hotels, a variety of entertainment options, and a welcoming culture are the main reasons why the territory attracts visitors. As an alternative to hotels, DET has allowed the use of standard and deluxe villas, townhouses as resort apartments.

But it is not easy to start such a business here. You will have to follow certain steps.

How to Open a Business – step-by-step guide

Conduct marketing research

Conducting marketing research

Analyze the current market trends, including demand and supply for holiday apartments in various Dubai neighborhoods. Identify popular destinations and seasons to maximize potential. In addition, familiarize yourself with local legal regulations and legal requirements regarding vacation rental apartments.

Define your business model

You can choose the role of an individual owner by collaborating with online platforms such as Airbnb or Booking, or create your own brand to manage multiple homes. Determine which types of real estate you want to focus on, depending on your target audience and budget.

Select the correct location

Choose areas that are popular with tourists and offer convenient access to major attractions, shopping malls, restaurants, and public transport.

Popular among tourists are Downtown, Palm Jumeirah, Jumeirah Beach Residence (JBR), Dubai Marina.

Buy a property and get a license

Buying a property

When buying, take into account the preferences of the target audience. Also make sure that your facilities are maintained in good condition, furnished, and equipped with the necessary amenities.

Obtain the necessary licenses and permits to conduct business legally. They are provided by the Dubai Tourism and Commerce Authority (DTCM). Familiarize yourself with the licensing requirements, including real estate registration, classification, and compliance with safety standards.

Set competitive prices

Conduct a comparative analysis of similar properties in your chosen location to set competitive rental rates. Consider factors such as property size, amenities, location, and seasonal demand when setting prices. Offering promotional fares and discounts during off-season periods can help attract more guests and maintain occupancy levels.

Create an online presence for your business

Create a professional website or collaborate with well-known rental platforms to attract potential guests, as well as facilitate online booking. Use professional, high-quality descriptions to highlight the unique features of each home. Use social media platforms to interact with your target audience.

Provide an exceptional guest experience

Guest service

Focus on providing first–class customer service – from inquiry to discharge. Respond promptly to guests’ requests, provide detailed information about real estate, local attractions, and services. Consider providing additional services such as airport transfers, cleaning, tour bookings to enhance the guest experience.

Form a reliable service team

Cooperate with reliable maintenance and cleaning services. Choose experienced property management companies that can handle key aspects such as check-in, check-out, service requests on your behalf. Having a reliable team will help you solve any difficulties quickly, as well as provide a hassle-free experience for your guests.

Implement marketing and advertising strategies

Use both online and offline channels for promotion. Invest in optimizing your site in search engines to improve your site’s ranking in search results. Use social media and paid advertising campaigns in Google Ads or Yandex.Direct to reach the target audience. Collaborate with local travel agencies, tour operators and bloggers.

Collect guest reviews and feedback

Positive feedback

Encourage your guests to leave reviews and ratings after their stay. Respond promptly to feedback, whether positive or negative, and solve any problems that arise. Use their feedback to continuously improve your services and enhance the guest experience.

Once you get a commercial license, it can be your way of building trust in the market. It can also be demonstrated in reception rooms in front of guests to show the authenticity and reputation of your business.

Follow the rules and regulations of the UAE

Read the latest regulations and comply with all legal requirements. We are talking about fire safety rules, providing necessary information to guests about emergency contacts and procedures for maintaining accurate records of guests staying in your facilities.

Focus on customer retention and referral programs

Implement strategies to encourage repeat bookings and referrals. Offer incentives such as loyalty programs, discounts for regular guests, and referral bonuses.

Fees for a Holiday Home Rental license in Dubai

CollectingThe amountDetails
Registration feeAED 1 520One-time payment for an individual operator
DTCM ResolutionAED 670Annual facility fee for 2-bedroom apartments
Tourist taxAED 10 (standard objects)For each reservation per night
 AED 15 (luxury)It is paid every 16th day of the following month
Required documentsPassport
UAE Identification document/Visa
DEWA electricity bill (in the name of the owner)
Certificate of ownership (in the name of the owner)

The process of obtaining a Holiday Home business license

Signing of documents
  1. The choice of commercial activity.
  2. Choosing a name for your business.
  3. Obtaining a license to rent a resort house with the following documents:
  • completed application forms issued by the DET Department;
  • a copy of the passport of the property owners/professional operators;
  • color photos (the size as in the passport) of the owners of the real estate object /professional operators;
  • a certificate of no objection from your employer (if any).

To register with the Department of Tourism and Trade, you will need:

  1. Completed application forms issued by the WHOLE.
  2. A copy of the UAE passport, visa and identification document (for individual property owners).
  3. Professional operators must provide a copy of their commercial license, which clearly states “Holiday Home Rental” as an activity.
  4. Details and floor plan of the property.
  5. The certificate of ownership and the DEWA electricity bill.

Approximate cost of the DET license         

PositionEstimated Cost (AED)
License fee11 000 – 15 000 (depends on factors such as the amount of rent, the number of shareholders, etc.)
The founding card600
Registration fee in DTCM1 250
Tourist tax10 per day for standard facilities, 15 per day for luxury facilities

Annual DTCM Permit Fees:

One-bedroom houses:370
Two-bedroom houses:670
Three-bedroom houses:970
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Vladimir Sviridov
Vladimir Sviridov
General Manager RLC Consulting
With a Postgraduate Masters in Finance from The, Moscow State University, Russia. Vladimir started his professional career as an auditor of the financial sector of EY. After that, he worked for several years in senior positions in corporate banking. In 2018-2021, he managed the finances of a large agricultural holding, and is currently responsible for strategic planning, corporate partnership and financial management in the role of General Manager of RLC Consulting GROUP in the UAE.

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