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Renting an apartment in Dubai: the way how to rent the property profitably, correctly, and safely

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Dubai is a major tourist and business center with a highly developed infrastructure. This town attracts tourists and investors from different countries. Many foreigners are considering buying a property in this luxurious megapolis, hoping to get a decent profit by leasing. The Government of the Emirates pays excellent attention to developing the short-term rental housing sector. All contracts are concluded under state control.

In the article, we are going to talk about the features of renting a property in Dubai, how the rental of real estate is regulated, the rules for monthly renting an apartment or for leasing for a long time, and whether it is worth buying and renting a house in Dubai.

Is it profitable to rent an apartment in Dubai?

The demand for rental property in Dubai is high. Many travelers are looking for such options, and citizens stay in this country for employment. About 80% of the inhabitants of the vast metropolis live in rented housing.

Short-term rent means the opportunity to rent a flat for a period of 1 day to a year. The tenants are tourists, business representatives, and citizens of Dubai who do not have resident visas. It is better to choose a house located in a tourist area or the city's business center for short-term rent.

Short-term rentals are considered the most profitable in comparison to long-term ones. It has a broader target audience. Long-term rentals are available only to residents, and it automatically reduces the number of potential tenants. The stagnation period is scarce in the case of short-term rentals — housing is rented quickly, even during the off-season.

Another benefit of short-term rent is higher profitability per day. On average, it is 30% more than long-term. In this case, the owner of the apartment receives monthly payments. In the case of a long-term lease, payment is made once a year or divided into several checks.

Laws that govern the rental property in Dubai

The short-term rental activity in Dubai is called Holiday Homes. It is regulated by the Department of Economy and Tourism (DET). It governs the requirements for licensing, the relationship of the parties, the list of services for renting, and real estate. Owners of the property (individuals) must obtain permission from a licensed DET operator for a short-term lease of real estate.

Renting apartments in Dubai is fully legalized and carried out by the published regulations:

  • Decree No. (41) of 2013 governing the core business of Holiday Homes rentals in the Emirate of Dubai.
  • Executive Order No. 1 of 2020 governing Holiday Homes licensing and permitting activities.
  • Executive Council Resolution No. (49) of 2014 approving the fees and penalties associated with Holiday Homes rental activities in the Emirate of Dubai.
  • The 2022 DET Holiday Homes Rental Regulation Guidelines detail the procedures for registering Holiday Homes, licensing activities, obtaining permits, and operating Holiday Homes, and the parties' relationship.

The features of short-term apartment rental in Dubai for a month

Foreign investors can purchase an apartment in Dubai for short-term rental, including daily rent. The contract prescribes the payment frequency and is determined by the parties' agreement.

The owner can rent an apartment in Dubai both independently and with the help of specialized real estate agencies. Qualified specialists provide such a service on commission, usually 5% of the annual rental value. Foreign investors should use specialists' services to avoid problems when renting a property in Dubai. Such professionals can help with the following options:

  1. Prepare an apartment for short-term rental (by law, the apartment must be equipped with the necessary furniture and inventory)
  2. Provide the connection in the apartment with electricity, water, gas, and internet
  3. Prepare a package of permits for government agencies
  4. Publish short-term apartment rental announcements on world portals where potential clients are looking for holiday homes apartments
  5. Provide interaction with the client, as well as cleaning, repair, and maintenance of equipment

Rad Holiday Homes company employs experienced specialists with a good reputation. We will provide comprehensive assistance with leasing your apartment at the desired price. You can count on competent advice on any issues — from preparing an ad to interacting with a client. Contact us by phone number or email address listed on the site.

Tip

Rad Holiday Homes company employs experienced specialists with a good reputation. We will provide comprehensive assistance with leasing your apartment at the desired price. You can count on competent advice on any issues — from preparing an ad to interacting with a client. Contact us by phone number or email address listed on the site.