Can I rent out a portion of my primary residence as a short-term rental?
Yes, you can rent out a portion of your primary residence as a short-term rental in Dubai, but there are specific regulations to follow. Dubai’s short-term rental market is governed by the Department of Tourism and Commerce Marketing (DTCM), which requires property owners to obtain a Holiday Home Permit before listing any portion of their residence for short-term stays.
Here are the steps and guidelines you should follow:
Obtain a Permit
You must apply for a Holiday Home Permit from the DTCM. The application can be completed online, and you'll need to submit documentation such as proof of ownership, your Emirates ID or passport, and in some cases, a No Objection Certificate (NOC) from your property developer if applicable. The cost for this permit starts at around AED 370 for a one-bedroom property.
Entire Property vs. Portion Rental
According to Dubai's regulations, only entire properties can be rented out as short-term rentals. This means you cannot rent out just a room or a part of your home while still occupying the property yourself during the rental period. The entire unit must be vacated and exclusively available to the short-term tenant for the duration of their stay.
Follow Licensing and Compliance Rules
Ensure that your rental complies with DTCM regulations, which include safety standards, cleanliness, and the proper registration of all guests. Additionally, you will need to remit the Tourism Dirham Fee, which is charged per room per night (typically AED 10-15 per room depending on the classification of the property).
Tax Considerations
While Dubai is known for its tax-free environment, short-term rental owners must still comply with certain regulations such as collecting and submitting the Tourism Dirham Fee and maintaining accurate records. There are no income taxes on rental earnings, but failure to comply with DTCM rules could lead to penalties.
By adhering to these guidelines, you can legally and profitably rent out your entire residence as a short-term rental in Dubai. Be sure to check with the DTCM regularly for any updates to regulations.
