The trend of renting through Airbnb has been gaining speed in Dubai. This rise in popularity of the alternative accommodation site has taken off since the Department of Tourism and Commerce Marketing (DTCM) allowed homeowners to use their properties as short-term rentals or holiday homes. If you own a home in Dubai, you can rent through Airbnb to tourists and city-visitors on a day-to-day basis.
While the idea of renting through Airbnb looks attractive, it is not easy to manage a short-term rental. Maintaining a holiday home is much more challenging. It’s imperative that you are aware of these challenges and prepared to take them on before listing your Dubai home on Airbnb or any other short-term rental websites.
Here is a detailed guide to renting your home through Airbnb in Dubai:
Step#1: Get your property registered with DTCM
The first step is to obtain permission from DTCM. It is mandatory for homeowners to register their properties with DTCM before renting them on a short-term basis. Fortunately, you can register online.
- Go to DTCM’s website and find the link for registration of holiday homes.
- There will be detailed instructions on how to fill out forms, documents needed and the steps you will need to take to register your home online.
- You may be required to visit the DTCM office and appear in person even after applying online.
- Tenants can also sublet properties. However, they are required to obtain a no-objection certificate from the landlord and provide it to DTCM.
- A registration fee will need to be paid to DCTM as well as various taxes.
- Keep a thorough record of each tenant staying in your home. You are required to obtain a copy of passport identification if the tenant is a foreign national.
Make sure that you follow all legal obligations before listing your Dubai home on Airbnb. The authorities have put stringent laws in place for renting out holiday homes. You will have to pay hefty penalties if you are caught violating these regulations.
Step#2: Determine your daily rental amount
Before listing your home on Airbnb, it is important to decide how much rent to charge per day. Perform comparative market analysis to come up with the best possible price. Research properties of similar sizes value and location already listed on Airbnb. Then you can find out how much rent other hosts are charging and how to assign a competitive price to your own. Once you build your profile on Airbnb and get positive feedback from guests, you may be able to charge a premium for your positive reputation and hospitality.
Step#3: List your Dubai home on Airbnb
It’s a simple and straightforward process to list your home on Airbnb. However, you need to make sure that your listing stands out.
- Verify your Airbnb account.
- Write a powerful listing that describes the most attractive features of the property and neighborhood. Your listing should provide details of nearby attractions and activities.
- Provide details of the amenities you are offering. For example, free WiFi, air-conditioning, modern kitchen, bathroom appliances, etc.
- Upload quality photographs of the property and its surroundings. You can even hire a photographer to highlight the most attractive features. Keep in mind that your guests will rent your apartment remotely. Meaning, the photographs play a crucial role in helping decide whether your property is the right fit for their needs. Investing in a skilled, but inexpensive photographer will ultimately pay off.
- For most Airbnb guests, the profile of the hosts is almost as important as the property itself. It’s a good idea to personalize your profile. Describe how you always go out of your way to create a memorable experience for your guests and a bit of your life story in Dubai.
Step#4: Determine whether you will manage the property on your own or hire an agency
Ensure that you can personally manage the property when using it as a short-term rental. You need to determine if you have enough time and resources to look after the property’s upkeep on a day-to-day basis as well as greeting guests around the clock.
You can hire a property management agency in Dubai. They will take care of all your obligations. Including the marketing and managing of your holiday home. They will determine the rent price, update your listing, collect necessary documents from tenants, verify their background, and take care of cleaning when a tenant moves out. You will only need to pay a percentage of the rent as a commission to your manager.
Lastly, an alternative to renting your home on Airbnb would be to rent it directly to Blueground. Blueground is a licensed company that rents apartments in some of the most premium locations around the world. Currently, we operate in Dubai, Athens, and six American cities spanning from New York to San Francisco. Our business model offers a wide array of benefits to property owners. For example, a fixed and steady income, property maintenance, and a flexible contract. Best yet, when you rent out your apartment with us, the minimum stay is one month or longer. We put an emphasis on long term occupancy and therefore Dubai’s low season will not have any effect on your rental income.
The Landlord Resources blog is Blueground’s information hub for landlords and property owners.
Through tailored articles, landlords can find relevant information relating to renting out their apartments, decorating, maintenance & renovation, property management and rental laws specific to their city.
