How to Start Airbnb Business in Dubai

The demand for Airbnb business in Dubai is never going to fade away as people are never going to stop visiting the city to be mesmerized by its cultural richness and jaw-dropping skylines. In fact, Dubai has emerged as a global tourist destination, setting a world record of millions of foreign visitors last year. These visitors, to make their vacation even more memorable, look for comfortable stays.

Other than tourists, let’s also talk about those who come to the city searching for job and business opportunities. During their hunt, these individuals also need short-term rentals where they can stay comfortably and safely. This creates a huge market for Airbnb businesses in Dubai to shine.

For someone looking to start an Airbnb business in the UAE, there is a great opportunity to earn steady income and potential returns from their property. In this guide, we will shed light on the process, legal requirements, and other essentials of running a Dubai Airbnb business.

Overview of short-term rental market in Dubai

The short-term rentals market in Dubai is a booming industry and has witnessed significant growth in recent years. Every year, a large number of properties are being added to the market. These professionally managed properties offer comfortable stays, amenities, and services to travelers coming to Dubai from different parts of the world.

In fact, in recent years, Dubai has become a luxury travel destination, and visitors are even willing to pay for high-end accommodations, increasing the profit-making capacity of the sector. Also, families and groups of people are now preferring to stay in larger short-term rental accommodations like apartments and villas for more spacious living.

Many travelers are looking for rental arrangements to suit their travel needs and budgets. The rising demand for short-term rentals in Dubai presents landlords and property managers with opportunities for high occupancy rates and attractive rental yields. They can earn a steady and profitable income stream from their properties.

Thus, we can say that Dubai has become one of the best destinations to start any sort of tourism business including an Airbnb business.

What is an Airbnb Business in Dubai

Airbnb is an online marketplace that connects people who want to rent out spaces with those who are looking for accommodations. Hosts can list their properties on the Airbnb platform and rent them out to individuals seeking a place to stay. The platform allows hosts to reach a vast network of potential guests.

Essentially, it acts as a middleman, helping property owners make money from their extra spaces, whether it is an entire apartment or a single room. In Dubai, since 2018, the government has allowed people to rent out their homes and properties on Airbnb. In fact, not just property owners but tenants can also participate.

Individuals are allowed to rent out up to 8 properties. Those looking to start a full-fledged Airbnb business in Dubai, can rent more than 8 units but they need to register with the Department of Economic Development (DET) to operate legally. To start and run a successful Airbnb business in UAE, there are proper legal requirements that must be met.

Legal Requirements for Airbnb Business in Dubai

Starting a Dubai Airbnb business is indeed profitable but remember there are proper legal requirements and regulations in place that are necessary to be met. Here are the essential legal requirements for starting an Airbnb business in Dubai:

1. Registration of Business:

You must get the Airbnb business registered with the Department of Economy and Tourism (DET). This step ensures that your business complies with the local regulations and safeguards interests for both the hosts and the guests.

2. Getting Approvals and Licenses:

For an Airbnb business, you must also secure approvals from the DET. You must mandatorily secure a proper trade license for your Airbnb business, which will be issued by the Department of Economic Development. The trade license listed activity is “Vacation Home Rentals.”

3. Registering the Property:

After getting the necessary approvals and license, it is important to register your property as a holiday home on the DET online portal. You will be required to submit documents such as:

• A copy of Emirates ID
• A passport copy
• A DEWA bill (not older than 3 months)
• A title deed copy (for owners)
• A trade license

Once DET approves your request, you will receive a certificate of approval, also known as Holiday Home Permit, that must be displaced on the property. The holiday home license gives assurance that your property meets the necessary standards of safety, amenities, and quality for the guests. It is issued by the department of Tourism and Commerce marketing (DTCM) under DET. You can also rent out a property as a tenant, but in that case, an NOC from the property owner may be needed and you can rent only one unit.

Remember: Holiday rental sector is primarily looked after by the DET, and you, as an Airbnb business owner, must always make sure you are meeting all the legal compliances and laws set for vacation home rentals.

Step by Step Guide for Starting Airbnb Business in Dubai

Let us now have a look at the process of getting started with an Airbnb business in Dubai. Here is how to start Airbnb in Dubai:

Step 1 – Analyze the Market:

Begin by understanding the short-term rental market in Dubai. Look into the current demand for accommodations, types of properties people are looking for, similar properties being rented, their occupancy rates, rental pricing, and overall guest preferences and needs. This will help you understand what travelers want and allow you to define your target market.

As an Airbnb business in Dubai, you can cater to families, business travelers, and tourists. Also, research areas with high demand and high yields, such as Downtown Dubai, Jumeirah, DAMAC Hills, and Dubai Marina. Being close to these areas will help you set competitive pricing.

Step 2 – Understand the Local Regulations:

As discussed earlier, familiarize yourself with the regulatory framework for Airbnb and vacation rentals in Dubai. The market is overseen by the Department of Economy and Tourism (DET), and you must understand the rules and laws they set before starting your business. This knowledge will help you start on the right foot.

Step 3 – Name Your Business:

Choose a unique name for your Airbnb business that complies with UAE naming rules and reflects the services you are offering. Ensure the name is not offensive, does not harm moral or religious sentiments, and is not already in use by another company.

Step 4 – Register with DET and Obtain a Trade License:

Apply with the Department of Economic Development to obtain a trade license for your Airbnb business in Dubai. For this, you need to submit the license application, provide the required documents, and pay the necessary fees.

Step 5 – Get a Visa and Corporate Bank Account:

Obtain a Dubai residency visa to legally stay and work in Dubai as a foreigner. You can also sponsor visas for your family and staff. Once the visa process is complete, open a business bank account to manage finances for your Airbnb business.

Step 6 – Register the Property with Dubai Tourism:

The property you intend to rent must be registered with the DET. Create an account on the Dubai Tourism Holiday Home Portal and register the property there. The registration fees start at AED 1,520*. Once you submit the required details, wait for DET’s approval. Once approved, you will receive a certificate of approval, which must be displayed on the property.

Finally, you can create account on Airbnb platform and list the properties after fulfilling the requirements and enjoy hosting! In case you need any further assistance, please reach out to Dubiz Business Setup.

Preparing and listing the Airbnb Property for Guests

The Airbnb business essentially revolves around properties being leased, so making the property attractive is crucial. The better maintained and more thoughtfully listed your property is, the more bookings you will receive! Here are some important considerations for preparing your property to be rented to guests:

1. Offering Range of Accommodations:

You can offer a range of accommodations to meet different budgets and suit various types of travelers, including single rooms, entire apartments, and more. Ensure the area is tidy and welcoming with basic sleeping and bathroom facilities.

2. Invest in Quality Furnishings and Decor:

Invest in high-quality furnishings, decor, and amenities that will appeal to the eyes of your potential guests, creating a comfortable and inviting atmosphere.

3. Ensure Safety and Quality Standards:

Safety and quality cannot be compromised at any cost. Make sure the guests’ stay is as comfortable and secure as possible by having proper facilities in place, such as CCTV surveillance, comfortable furnishings, and available utilities.

4. Incorporate Smart Home Features:

Smart home features can enhance guest convenience and safety. Consider installing tech controls like fire control systems, smart locks and doors, voice-controlled speakers, and motion sensors. These features improve the overall experience for the guests.

5. Create a Memorable Customer Experience:

Small gestures matter in the hospitality sector. For example, consider presenting a small welcome basket to guests. These small things can make a big difference and help create a positive impression.

6. Create an Attractive Listing on Airbnb:

Take professional photos that cover every angle of your property and highlight its best features. Be transparent by including pictures of every room and area, ensuring potential guests can get a clear idea of what to expect.

7. Engaging and Optimized Descriptions:

Write an engaging, concise description that is optimized for keywords to improve visibility on the Airbnb platform. Be sure to provide all the relevant details about the space that guests may be looking for. Rules related to pets, check-in/check-out times, and other essential information must be comminated openly to avoid misunderstandings.

8. Use Competitive Pricing Strategies:

Charging too high initially is not recommended. Start with lower rates, and based on demand, service quality, and feedback, you can increase your rates over time. Airbnb’s smart pricing tool helps adjust rates automatically based on demand.

Documents needed for Starting Dubai Airbnb Business

For getting the necessary licenses and registration, you must keep certain documents ready. Here are the general documents you will need to start an Airbnb business in Dubai:

• Copy of valid passport
• Passport size photographs
• Copy of Emirates ID
• Property title deed
• NOC from landlord, if renting as tenant.
• Valid trade license
• DTCM registration
• DEWA bill, not older than 3 months
• Images of the property to be listed
• Rental agreement, if applicable
• Insurance documents
• Any additional document as may be needed

Cost of starting an Airbnb Business in UAE

The cost of starting an Airbnb business in Dubai generally starts from AED 15,000*. The overall cost of business setup may vary based on specific business needs and property requirements. Here are the typical costs involved:

• License and permit cost
• Property setup costs
• Marketing expenses
• Airbnb platform fees
• Utilities and maintenance fees
• Other expenses
• Visa costs

To ascertain accurate budget, we recommend getting in touch with our professional consultants at Dubiz Business Setup.

Advantages of short-term Rental Business in Dubai

Given the bustling tourism sector of Dubai and influx of travelers, starting Airbnb business in Dubai can be very profitable:

High rental yields: Dubai’s short term rental properties yield very high returns as compared to other regions.

Expanding platforms: Platforms such as Airbnb and Booking.com make it very convenient for hosts to rent out their properties to wide range of potential guests.

Simple licensing process: The licensing for the short-term rental properties has been streamlined by the Dubai tourism. Hosts can lease their units legally with ease.

Investor friendly policies: Dubai offers a very tax friendly environment for the businesses letting them save more.

Increased flexibility: Airbnb business can be managed from anywhere. Incase you have other commitments, you can still run your rental business on side.

Steady source of side income: Homeowners and hosts can rent out the extra spaces which they don’t use and turn it into steady stream of income.

Additional marketing strategies for you

• Look at these additional tips for making your Airbnb business in Dubai stand out:
• Prioritize exceptional customer service and effective communication with guests.
• Leverage social media to increase your business’s online presence.
• Use multiple platforms to expand your reach to potential guests.
• Collaborate with local tourism companies to develop networks.
• Collect reviews from your guests and continuously improve your services.
• Always stay compliant with Dubai Tourism’s laws and regulations.

Take a leap into Airbnb Business in UAE

Dubai’s thriving tourism industry combined with high demand, high rental yields, and investor-friendly policies, makes the Airbnb business in Dubai one of the highest-paying and profitable opportunities for property investors and homeowners.

However, there are certain legal requirements set out by the Department of Economy and Tourism (DET) that must be met. That’s where you can rely on Dubiz Business Setup. We can help you with licensing, approvals, permits, bank account opening, visas, and much more.

Don not look any further for guidance on business setup in Dubai. Reach out to Dubiz. We assure you will receive the best company formation services at the best prices.

Call: +971 56 369 5485
WhatsApp: +971 56 369 5485
Email: info@dubiz.co

Frequently Asked Questions (FAQs)

1. Is it legal to rent out properties short term in Dubai?

Yes, it is legal to rent out properties for short term in Dubai. However, proper permit and license from the Dubai Tourism Department must be secured.

2. Is Airbnb profitable in Dubai?

Yes, starting and running an Airbnb in Dubai can be highly profitable given the rising demand for short term rentals and huge influx of visitors. Your property location, pricing strategy and marketing will decide how much profit you will make.

3. Is Airbnb business legal in Dubai?

Many people wonder is Airbnb legal in Dubai. Well, absolutely it is. The hosts must follow the local regulations, and get proper registration and licensing from the DET.

4. Do we need a license for Airbnb in Dubai?

Yes, to run an Airbnb business in Dubai, you need to get proper trade license from the Department of Economic Development.

5. Can I start an Airbnb without owning property in Dubai?

Yes, one can operate an Airbnb without being the owner of the property, provided they receive an NOC from the owner and holiday home permit from the DET.

6. How to get Airbnb license in Dubai?

To get an Airbnb license in Dubai, follow these steps:

1. Gather the necessary documents
2. Register with the DET
3. Apply for the trade license
4. Pay the fees
5. Receive the license after approval