Set Up a Vacation Homes Rental Company in UAE

by Zaara 16, Aug 2021

UAE is blessed with the quirky landscape of rocky mountains, rolling sand dunes, and sunny coastlines. UAE has much to attract tourists. Whether it’s a Dhow Cruise on Dubai creek, the rocky edges of Hajar Mountains ready for adventure, the audacious beauty of Fujairah, or the alluring moves of the belly dancer under the starry skies, this gorgeous country has something for the tourists to come for a vacation.

Dubai is the tourism hub of the UAE. If you are doing business in UAE, then Dubai is the location for you.

Dubai is absolutely the perfect place for you to set up a vacation home rental company with increasing tourism every year. As per the newest data produced by the Dubai Tourism, Dubai is nearing its 2020 tourism target as it greeted a total of 15.79 million visitors last year, which has increased by 6.2 per cent over a year earlier.

 With the Dubai Expo 2020 ahead, short term vacation homes rental demand has increased in the market. The net income from Vacation Rental Homes is expected to be much higher compared to the annual rent as regular unit rental in Dubai.

How to Get Your Vacation Homes Rental License?

Following are the steps that you need to follow:

Step 1: Outline your Business Activities

While setting up a business in UAE, leading up to Dubai Expo 2020, it’s important that you clearly figure out your business activities. Carrying out unlicensed activities can lead to hefty fines or even revocation of license.

Tou must choose the activities that you have stated from the official list published by the Dubai Department of Economic Development (DED). While setting up a holiday rental business in Dubai, the official DED activity is ‘Vacation Homes Rental’.

Step 2: Choosing your Company Name

There are certain key things that you should keep in mind while setting up a business in UAE. You must be aware that you must obey a strict set of naming conventions, or in other words, you should avoid any offensive language.

You must avoid the names of reputed organizations and abbreviations. You must also check that the name which you have chosen is available to register.

Step 3: Procedure to Get your Vacation Rental Home License

Following are the documents that you must submit while applying for the trade license:

  • Completed application form
  • Passport copy of the suggested owner or owners
  • Details of your property
  • Two passport size color photos.

You will also need to get approval from the Department of Tourism and Commerce Marketing (DTCM). You are allowed to start your business only when you receive your license and DTCM approval.  You will also get an official certificate of registration from the DTCM, which you must display within your rental property.

Step 4: Making Your Visa Applications

You need to have a UAE visa to run a Vacation home Rental business in Dubai. If you have one, then you don't have any problems with running the business. You can also subsidize others for their visas too, as the holder of a UAE business license.

Cost of a Vacation Home Rental License in Dubai

There are various costs involved in starting a Vacation home Rental business in Dubai, leading up to Dubai Expo 2020. There is also the DTCM approval cost along with the price of the license

There is also a separate allowance fee, which is calculated on the number of rooms for rent. For each room that you provide for rent, you will need to pay AED 300 per year. Also, you need to pay a tourism fee of AED 10-15 per bedroom.
There are so many factors involved in starting a Vacation home rental business in UAE. Our experts in UAE are ready to help you in outlining the requirements for setting up the business.

Hopefully, this blog has made clear that if you’re furnished with the right knowledge, setting up a Vacation Rental home business in Dubai doesn’t have to be overly complex.

Why us?

We, at Commitbiz, have been one of the business consultant players in the UAE region. We provide services for companies and business people interested in establishing their progress in the UAE. If you have any further queries, you can contact us.

We will be delighted to help you.


What are holiday homes in UAE?

They are furnished accommodations that are owned by individuals or management companies that are rented on long or short terms without issuing a contract of tenancy and must be registered with the Dubai Tourism and Commerce Marketing (DTCM).

What are the advantages of vacation homes in Dubai?

They are:

  • A holiday rental property can create additional revenue and cover the mortgage 

  • A vacation rental can help balance the costs of your awaited retirement home

  • You can increase the prices during certain events and high seasons.

What are the disadvantages of vacation homes rentals in Dubai?

They are:

  • Vacation homes are costly to manage sometimes, and seasonal maintenance must be considered

  • Vacation homes are affected by an economic recession, and you can be financially helpless if you rely on rental revenue

  • There can always be a change in the rules and regulations.

What are the central departments for obtaining a holiday home rental license?

 The central licensing departments are DTCM and DED (Department of Economic Development), Dubai.

What is the major requirement for the license holder?

The license holder must be an expert in the hospitality sector.