Operating Short-Term Rental in Dubai
Once the short-term rental permit in Dubai has been issued by the DTCM, homeowners can start advertising their property, which allows guests to filter between properties available for daily, weekly, and monthly rental. Bear in mind that the entire unit must be rented out to the tenant, and the homeowner cannot occupy part of the property at the same time.
According to the DTCM, operators for short-term rental properties in Dubai should have insurance that covers risks posed to guests, the property, or the building. For short-term rental apartments in Dubai, DTCM also recommends informing the building management beforehand about the rental operations.
When guests check in to the property, the operator must upload either a copy for the National ID (for GCC Citizens) or the passport (for all other nationalities) for all the guests.
One of the taxes charged in the UAE, the Tourism Dirham is levied on guests by hotels, hotel apartments, and short-term rental properties in Dubai. Tourism Dirham is charged to develop the trade and tourism sector in the emirate.
Operators of properties on short-term lease in Dubai will also collect Tourism Dirham from their guests on the DTCM’s behalf. The total Tourism Dirham amount collected for each month must be paid to the DTCM by the 15th of the following month.
HOW IS THE TOURISM DIRHAM CALCULATED FOR SHORT-TERM RENTAL PROPERTIES?
For short-term rentals in Dubai, Tourism Dirham is charged per night per room occupied. The amount that is charged for Tourism Dirham depends on the category of the property: standard or deluxe. The classification of short-term rental properties in Dubai is done when applying for the DTCM permit.
The Tourism Dirham fee for standard or deluxe properties (per night per room) is as follows:
- Standard: AED 10
- Deluxe: AED 15
The Tourism Dirham fee for a guest’s stay will be calculated when the operator checks out the guest through the DTCM system. The operator must then present the Tourism Dirham fee as a separate charge when presenting the bill or invoice to the guest.
It’s important to note that Tourism Dirham is only charged for the first 30 consecutive days of the guest’s stay.