Holiday Homes in Dubai: Licences, Costs and Returns

Short-term letting in Dubai is legal but licensed. You need a holiday home permit from Dubai's Department of Economy and Tourism, and the property must be registered before you can list it.

Done properly it can earn more than a long lease. Done casually it risks fines.

Short-term against long-term letting

	Short-term	Long-term
Income	Higher gross, variable	Lower, predictable
Costs	Cleaning, linen, utilities, platform fees	Minimal once let
Effort	Constant	Once or twice a year
Licence	Required	Ejari registration only
Void risk	Seasonal	Between tenancies

The gross figures look dramatic. The net gap is much narrower once you count cleaning between stays, utilities you now pay, furnishing, platform commission and empty nights in the summer.

What the licence involves

A holiday home permit from the Department of Economy and Tourism, renewed periodically.
Proof of ownership or the owner's written consent if you are the tenant.
The property registered and classified.
Tourism fees per occupied night, collected from guests.

Some buildings and communities also restrict short-term letting in their own rules, regardless of the licence. Check with the owners association before you furnish anything.

Where it works best

Locations with tourist demand: Downtown, Dubai Marina, Palm Jumeirah, JBR and Business Bay. A well-located one-bedroom does better than a large apartment in a residential suburb, because occupancy matters more than size.

The costs people forget

Furnishing to a standard guests expect, and replacing it.
Utilities and internet, which the owner pays.
Cleaning and laundry between every stay.
Platform commission, typically 15 to 20 percent.
Management, if you are not doing it yourself, often 20 percent or more.

Is it worth it?

If you have a well-located apartment, the appetite to run it like a small business, and you are here to manage it, the returns can beat a long lease. If you want income without involvement, a long tenancy with a managing agent is usually the better trade. Our guide to rental yields explains how to compare properly.