Vacation Home Rental Business in Dubai (2025): License, Cost & Step-by-Step Guide

Dubai is a premier travel destination, and each year, millions of people visit this city. Some of them are on a business trip, whereas others arrive to have fun, shop, or spend the holidays with the family. Nevertheless, not everyone prefers to stay in hotels when in Dubai. Today, the customer demands more space, comfort, and in many cases, a home away from home. They find them to be cheap, exclusive, and adjustable. To this effect, the vacation home rental business in Dubai is increasing at a high rate. All that is required of you is to follow simple steps and new rules, and it has now become very easy to establish this business in 2025.

What is the Vacation Home Rental?

A vacation home rental business refers to renting your property to travellers on a short-term basis. Visitors are able to rent the house for a day, a week, or even a month. These homes are more private and comfortable than hotels. Families, couples, and groups like and prefer them as they are more relaxed and homely. 

Moreover, vacation houses tend to be cheaper compared to luxury hotels, hence they are more favourable on trips that are limited in terms of budget. It can profit the owners as well since it allows them to receive consistent revenues from each reservation.

Such a business can also be referred to as a short-term rental business Dubai. Because tourism in Dubai is steadily increasing, vacation rentals have proved to be one of the greatest opportunities that can help property owners earn extra returns.

About the Vacation Home Rental Business in Dubai

Operating the vacation home rental business in Dubai is properly regulated, and that is relevant to its owners and guests. You cannot merely put your house on Airbnb or other services without prior authorization. To operate legally, a license from Dubai Economy and Tourism (DET) is required. Furthermore, the Department of Tourism and Commerce Marketing (DTCM) regularly inspects properties to ensure they comply with the regulations. It secures the rental sector securely and professionally.

Renting your property with the correct license is a worry-free process that can attract more customers. Besides, Dubai has a highly developed tourism industry, and millions of tourists visit Dubai annually, which implies that the growth in demand for vacation homes will remain high.

Benefits of Starting a Vacation Homes Business in Dubai, UAE

There are numerous benefits achieved in the launch of a vacation homes business in Dubai, UAE. The tourism in Dubai is witnessing a boom, and there are lucrative profits to enjoy without a specific use and guaranteed legal protection. These are the key advantages:

1. Strong tourist demand

Dubai hosts several million tourists each year, and property owners can expect a constant number of visitors, ensuring a regular rental possibility.

2. Greater Returns

Short-term rentals are known to result in 25 to 30% higher returns when compared to long-term rentals, making the investments highly productive for owners.

3. Low Taxes

The personal income tax in the UAE is 0% so vacation rental homeowners can retain more of the profits.

4. Flexible Occupancy

Rent your house during high-season tourist occupancy periods, and use the home whenever you desire flexibility.

5. International Platforms

Under a valid license, you can list the property on Airbnb or such other sites and increase the range of your guests.

6. Booming Economies

The Tourism industry in Dubai continues to increase, and this guarantees further growth in the number of vacation homes and subsequent occupancy rates.

7. Fees and Costs

Holiday home management companies in Dubai take care of all the costs, such as fees, marketing, and maintenance, thus making it easy to own without having any concerns.

Requirements for Opening a Holiday Home in Dubai, UAE

To make an opening of a holiday home in Dubai, you are obliged to comply with some rules and approvals. You have to get approval from Dubai Economy and Tourism (DET) and the Department of Tourism and Commerce Marketing (DTCM). In the absence of these approvals, renting is not legal.

Each of the units should incorporate safety items. You should see to it that you offer a fire extinguisher, a first aid kit, and a clear escape route in times of emergency. Holistic necessities like proper bedding and curtains are also needed.

Moreover, you are not allowed to add an extra charge for electricity and water. These should already have been factored into the rent. Lastly, none of the licensed properties should fail to show their license on holiday homes, and guests should be able to see that it is valid and legitimate.

How to Start a Vacation Rental Business in Dubai

The vacuum rental business in Dubai is not as complex as one would think, and you can start one as easily. It is a fairly simple procedure; with the right processes and the right authorities, you will be able to come up and start making money. What to do:

Step 1: Select Your Business Activity

DET requires you to select your business activity of your formal business with DET as Vacation Homes Rental. It guarantees the registration of your business properly under the law.

Step 2: Choose a business name

Next, you should select the name of a company. Comply with the naming rules of Dubai. Never use an offensive or religious name, but do use something unique.

Step 3: Submit Your Papers

In this case, you should prepare and give all the papers that are necessary, which may include things like your passport copies, photos, property, and your application for the license to the concerned authorities.

Step 4: Apply to Your Licensee

Once all documents are submitted, get your holiday licence through DET and DTCM. This license will render your rental business completely legal.

Step 5: Get Your Visa

With an official license, you can request visas on your own behalf as well as your family or staff. It enables you to work and live in Dubai.

Step 6: Open a Bank Account in Dubai

Lastly, open a corporate bank account in the UAE. It will assist in rental according to the income and expenditure, as well as conveniently handle financial-related transactions.

In Dubai, you can be guided by the business setup experts. They facilitate steps more easily.

Documents Required for Holiday Home License Dubai

The documents needed to obtain a holiday home license in Dubai are:

• Copy of the passport of the owner.
• Two photos(passport size).
• The certificate of a filled license application
• Information on the property and floor plan.
• No Objection Certificate (as required).
• DET and DTCM approval.

Business Setup Consultants in Dubai assist in the preparation of these. It is time-saving.

Vacation Rental License Dubai

Legal renting requires a vacation rental license in Dubai. Without it, Airbnb or other listings will be illegal. DET issues this license. DTCM keeps track of compliance. The license is valid for 1 year. It has to be reconstituted.

1. Holiday Home License Dubai Cost

The cost of a license for a holiday home in Dubai varies depending on your property. You pay the license fee, the tourism fee, and the room allowance fee. The per-room annual average allowance fee is AED 300 (approx.). There are also tourism fees to be paid by guests, where they pay AED 10-15 per night. Business setup Dubai agents can explain costs.

2. Pros and Cons of Getting a Holiday Home License in Dubai, UAE

Pros

• Huge returns as opposed to a long-term rent.
• The flourishing tourist destination
• Licensed.

Cons

• Rules are subject to change at any time
• Maintenance costs- high
• During a crisis, reservations tend to be reduced

Nevertheless, the vacation home rental business in Dubai is lucrative.

Vacation Home Rental Regulations in Dubai

In Dubai, the laws of vacation home rental have been very explicit and should be observed by all homeowners. You must obtain a license with DET and also approval from the DTCM. In the absence of them, renting is prohibited.

You are not allowed to rent only a single room or part of the home. All the property has to be booked by the guests. Along with that, every unit is expected to comply with the safety regulations. As an example, you have to equip a fire extinguisher, medical kit, safe locker, prayer mat, adequate bedding, and an escape route.

In addition, proprietors are not allowed to bill water and electricity at a higher rate. There is also the municipality and tourism fee that guests have to pay. Properties should be viewed regularly, and the DTCM certificate has to be placed. These regulations are introduced in order to guarantee that the vacation home rental company in Dubai will remain secure, legal, and professional to both hosts and visitors.

Get Help From Us

The rental of vacation home business is confusing when it comes to starting it in Dubai. One must fill out forms, gain approvals, and follow rules. You also do not have to worry. Given the appropriate support, it is easy. Business setup experts in Dubai are fully aware of every step and direct one through it. They have your papers ready, processed, and authorizations, and save you time. Besides, business setup consultants in Dubai will give you guidance on how to go about registering your property. It renders the process of company formation in Dubai fast and painless. 

Most investors highly trust these specialists due to their avoidance of costly mistakes. Built-in systems and technologies eliminate the stressful elements involved in staying on top of paperwork. Now you can spend time building your rental business and serving satisfied guests.

FAQs

Q1 How much is the vacation rental license in Dubai?

What is the size of the property? You pay license costs, annual room costs of ca 300 AED, and nightly tourism charges by the guest.

Q2: Is it legal to start an Airbnb business setup Dubai?

There is a way you can. However, you have to obtain a DET holiday homes license in UAE first, without which your Airbnb activity is not legal.

Q3: What are the holiday home license Dubai documents?

To rent legally, you will require passport copies, passport photos (the size of a passport), property details, a filled license form, DET approvals, and DTCM approvals.

Q4: Do I require a vacation property management authority in Dubai?

Not always needed. However, these holiday home management companies in Dubai manage bookings, marketing, and property maintenance to make things run smoothly.

Q5 What makes the vacation home rental business in Dubai such a good option?

The tourism in Dubai increases annually. The business has low tax regulations, high customer demand, and improved profits, making it very lucrative.

Conclusion

Vacation home rental business in Dubai is one of the best opportunities in 2025, indeed. Tourism is expanding at a high rate, and travelers are seeking cheap yet comfortable accommodation. Having clear regulations and an easy licensing procedure, the beginning of this business has become as simple as ever before. Nevertheless, you should obey the laws, organize the correct documents, and have your license accepted. In this manner, you will not have to suffer penalties and will be protected in terms of conducting your business legally. In addition, the profits are lucrative as short-term rentals usually attract higher returns than long-term leasing.

To ensure that the procedure of business setup is smooth, it will be advisable to seek the help of the experts in business setup in Dubai. They do the paperwork, and you deal with guests. So Dubai is prepared- are you prepared to move on?