How to Start a Vacation Homes Rental Business in DubaiMarch 14, 2022
Dubai, where the business world and the vacation world go hand in hand, a vacation home rental business in Dubai is sure to thrive. With the inauguration of Expo 2020 and the fact that Dubai attracts thousands of people to its shore every year for business and tourism, it’s no surprise that the demand for vacation home rentals has increased in the years.
What is a Vacation Homes Rental Business in Dubai?
As per the UAE department of economic development (DED), the businesses of vacation home rentals include well-furnished accommodations that can be rented to vacationers and tourists as a whole on a daily basis, weekly or monthly basis. These properties have a manager who holds a license that allows them to rent these properties out for a short term.
Dubai attracts tourists and vacationers from around the world; therefore, the rise in the home vacation rental business has increased and many people are joining in on the business prospect.
Benefits of Starting a Vacation Homes Business in Dubai
Only setting up your business in Dubai gives you profit. In UAE, you immediately benefit from the low tax regime of the emirates, which is 0% on all corporate and personal income. Another benefit that you get if you establish your business in the free zone is that you can make use of zero currency restrictions.
As Dubai is one of the most popular travel and business destinations, its tourism market will keep increasing. So, there is no better time to join than this. It regularly draws more than 15M+ visitors and with the establishment of Expo 2020, there's been a massive increase in tourist visits, making it a perfect time for you to join the vacation homes rental business in Dubai!
Vacations Homes Rental License in Dubai
First things first, in order to get your vacation homes rental business on board, you need to apply for your trade license. You already have your property, but to set up your business, you need to supply the following things to the DED:
- Complete and error-free application form
- A copy of the proposed owner(s) passport
- Property details
- 2 color passport photographs
In addition, you also need to get approval from the DTCM, the Department of Tourism and Commerce Marketing. This sector is responsible for overseeing the marketing and development of the tourism sector in Dubai.
After registration, your property will be inspected occasionally in order to ensure that your property is correctly coinciding with the required standards. It is also advised that you display your DTCM certificate in your rental property,
Documents required to Open a Vacation Homes Rental Business in Dubai
Some mandatory documents before starting your holiday home business in Dubai are:
- The passport of owners
- Application form for licenses
- Your property details
- The trade license from the DED
- The certificate from the DTCM
Steps to Start a Holiday Homes Rental Business in Dubai
When it comes to starting your vacation homes rental business in Dubai, you are required to follow a set of steps. These include:
- Setting Your Business Activity
First you need to decide what kind of business venture you're going to commit to. Any unlicensed work is illegal in Dubai and you can face some major consequences. If you have decided on opening a vacation home rental agency in Dubai, then in the DED, the business falls under the category of “Vacation Homes Rental.”
- Choose Your Company’s Name
The next thing is to choose your organization’s name. There are some rules and regulations that you must be aware of when you're naming your company. Firstly. It is important to note, that you cannot use any name in any language that might be offensive or blasphemous.
It is also necessary that you avoid any names that are already being used by well-known companies. It is also advised that you do not abbreviate your name if you are using it. Use a complete name, abbreviations are not allowed.
- Apply for the Holiday Home Licenses
Before establishing your business, there are a couple of licenses that you need to get. A trade license that you need to acquire from the Department of Economic Development and a certificate from the DTCM, the Department of Tourism and Commerce Marketing that you are required to present at all times in your rentals for occasional inspections.
- Get Your Visa Application Completed
If you want to run a vacation homes rental agency in Dubai, it is essential that you get a UAE visa. A company cannot work without you having the residential permit. If you already have one, you can easily run a business in UAE also get the advantage of subsidizing visas for your family and employees!
Cost of Vacation Homes Rental Business License in Dubai
When you are opening a vacation home rental business in Dubai, there are many costs that you have to think about. From the licensing fee to the fee for the DTCM approval, starting a holiday homes rental business in Dubai can be a little on the expensive side.
Some other fee includes the separate allowance fees that is calculated for each room you're renting; you will need to pay around AED 300 per year. You are also required to pay AED 10-15 per bedroom tourism fee. In order to understand all the fee cost structure, you can consult business consulting firms where experts can guide you through the entire process of starting your vacation homes rental business in Dubai.
Dubai holiday Homes Regulations
Some rules and regulations of Dubai that you should remember to follow before welcoming in your first tenants are:
- The owner is required to provide necessities like electricity and water without any extra charges
- Proper maintenance care should be given at all times
- All holiday homes are required to follow DTCM standards
- The guests are required to pay 10% of the municipality tax
- Additional Dubai tourism fees of AED 10 to 15 should be collected for standard and deluxe accommodations respectively.
How Avyanco Helps You Opening Holidays Home Business in Dubai
Avyanco is one of the most trusted establishments that help foreigners set up their businesses in Dubai with 100% ownership. With Avyanco, you feel empowered and initiate your business on your terms. We are dedicated to helping you find the right business for you and from establishing to finding the right investors, our experts are with you every step of the way, helping you make the best decisions for your business.
From trading and real estate to supply chain and tourism, Avyanco has assisted more than 1500 plus entrepreneurs in establishing their business in Dubai. Therefore, if you're looking for a consulting company that you'll know will point you in the right direction, come to us! Our experts know where to start and help your business reach the highest limits!
So, in the end, if you're thinking of opening your vacation homes rental agency in Dubai, then there won't be another perfect time to get started on this spectacular idea than now! You can consult our experts and we can help you in everything from getting your license and certificate to seeing to your visa and immigration processes. All you have to do is contact us!