Dubai’s real estate and tourism markets are booming, and with them, the opportunity to earn a steady income from short-term rentals. To legally rent out your property on platforms like Airbnb or Booking.com, you need a holiday home license. This license allows homeowners, tenants, or property management companies to operate short-term stays in compliance with Dubai Tourism & Commerce Marketing (DTCM) regulations.
Why a Holiday Home License in Dubai Is a Smart Move
Dubai is a global travel destination, welcoming over 17 million international tourists annually (source: DTCM). This makes short-term rental property a highly attractive business.
Here’s why getting a holiday home license is a smart idea:
- Legal Compliance: Avoid penalties and operate within Dubai’s regulations
- Higher Income Potential: Short-term rental yields can exceed long-term leases
- Greater Guest Trust: Tourists prefer licensed homes for safety and legitimacy
- More Flexibility: Rent for days, weeks, or months without long-term contracts
Licensed properties are also favored by online booking platforms, giving you better visibility and guest reviews.
Who Needs a Holiday Home License in the UAE?
In Dubai, any person or entity offering short-term property rentals must hold a valid holiday home license. There are different options depending on your situation.
Owner vs Renter vs Corporate Setup
- Property Owners: Can register up to 8 units under their name
- Tenants: Allowed to license only 1 unit and must present a valid NOC from the landlord
- Corporate Entities: Can manage multiple properties, but must register a mainland trade license with the relevant activity code
All license holders must follow DTCM guidelines for guest registration, safety, and cleanliness. Businesses must also use the official DTCM portal for renewals and updates.
Eligibility Checklist for Your Holiday Home License
Before applying, make sure you meet all the basic requirements. Here’s a quick checklist of what’s needed:
- Copy of passport and Emirates ID
- Title deed or tenancy contract with Ejari
- No Objection Certificate (NOC) from the landlord (if the tenant)
- Floor plan of the property
- Valid insurance coverage for the unit
- Installed fire alarms, a first-aid kit, and a fire extinguisher
Step-by-Step Application Process
Getting your holiday home license doesn’t have to be complicated.
Here’s how it works:
1. Set Up Your Business Entity (DED Mainland License)
If you plan to operate as a company or manage multiple properties, you must obtain a mainland trade license with the activity “Vacation Home Rental.” This license is issued by the Department of Economic Development (DED).
2. Submit License Application via DTCM/DXB
Once you have your business license or documents as an individual, register on the DTCM portal. Upload the required documents, pay the fees, and choose your property classification:
- Standard
- Deluxe
- Premier
3. Prepare for Inspection & Property Permit
After registration, your unit will undergo a compliance inspection. Inspectors check for cleanliness, safety, and required amenities. If approved, you’ll receive a property permit. Expect to pay around AED 1,500 to AED 2,000 in total licensing and inspection costs.
4. Activate and Renew Your License
Once approved, you can list your home on Airbnb, Booking.com, and other platforms. Each guest must be registered via DTCM’s platform. Licenses are valid for one year and must be renewed annually.
Calendar Tip: Mark your renewal dates early to avoid fines or suspension.
Common Pitfalls and How to Avoid Them
Even though the process is straightforward, many applicants run into issues. Here are common mistakes and how you can avoid them:
- Tenant NOC Issues: Without a proper No Objection Certificate from the landlord, tenants cannot apply
- Unlicensed Communities: Certain areas, like Emaar-managed communities, may not allow holiday rentals
- Documentation Errors: Incorrect or expired documents lead to delays
- Overpromising in Listings: Misleading ads may result in penalties and poor reviews
Many of these problems are shared on expat forums like Reddit. With Lukadah’s expert guidance, you can steer clear of these challenges.
How Much Does It Cost (and Pays Back)
Setting up a holiday home license in Dubai involves several steps, each with its own administrative and operational costs. These include obtaining a business license (if you’re applying as a company), registering your property with DTCM, securing the necessary approvals, and ensuring your home meets safety and insurance standards. Additional expenses may arise from listing setup, guest management tools, or professional photography to help your property stand out on booking platforms.
Although the process has initial investment requirements, many property owners find the returns worthwhile, especially when the property is located in a high-demand tourist area. Monthly rental income from short-term guests can often exceed long-term lease income, offering faster payback and higher annual yield.
Best Practices for Running a Successful Holiday Home
Operating a licensed holiday home involves more than just getting approvals. To keep guests happy and revenue flowing, follow these tips:
- Use dynamic pricing tools like PriceLabs or AirDNA
- Ensure hotel-style cleanliness and responsive communication
- Invest in a PMS (Property Management System) to manage bookings, cleaning, and guest messages
- Maintain updated, honest listings with high-quality photos
How Lukadah Can Help
At Lukadah, we offer complete support to help you launch and run your holiday home business stress-free.
- We handle everything from DED trade licenses to DTCM permits
- Full support for document collection, Ejari registration, and NOC assistance
- Inspection preparation and safety compliance checks
- Help with listing, guest handling, and renewals
Phone: +971 4 394 0800
Email: info@lukadah.com
WhatsApp: +971 5 4343 1112
Your Next Step: Start Your Holiday Home Journey
Ready to earn income from your property? Don’t let paperwork and processes slow you down. Book a free consultation with Lukadah today and let our team guide you step-by-step.
Get your eligibility check now →
FAQ
1. How do I get a holiday home license in Dubai?
You must register with DTCM, provide required documents, ensure the property meets safety standards, and get official approval to start renting.
2. Can I rent out my apartment as a holiday home in the UAE?
Yes, if you’re the owner or have a No Objection Certificate from your landlord, and the property is in an approved area.
3. What are the requirements for a Dubai holiday home license?
You’ll need a title deed or tenancy contract, Ejari, NOC (if renting), passport copy, floor plan, and proof of insurance and safety measures.
4. Is a holiday home business profitable in Dubai?
Yes, short-term rentals often generate higher income than long-term leases, especially in tourist-friendly areas.
5. Do I need a trade license to manage holiday homes in Dubai?
Yes, if you’re managing multiple properties as a business, you must set up a company and get a mainland trade license with the right activity.