Due to the many tourists, you can start an Airbnb business in Dubai and earn huge profits. The government of UAE recently allowed Airbnb hosting services, which has opened many business opportunities in the city. For hosting homes or getting legal lease out homes for the short term, you’ll need to follow the guidelines of Dubai Tourism Holiday Homes Operators.
Dubai is a hub of tourism, and the number of tourists is increasing every year. Local hosts can take advantage of this opportunity by turning their homes into welcoming spaces for tourists. The main focus for Airbnb businesses should be the safety, quality, and satisfaction of the travelers. Let us look at the legal responsibilities and steps required to run a successful business
Overview of Airbnb Business in Dubai
Dubai is one of the famous places for travelers from around the world, which means many travelers are considering getting affordable accommodation for a short time. If you want to run a profitable Airbnb business, it is essential to have good management, location, and a pricing strategy.
In 2018, the UAE government allowed people to rent out their homes on Airbnb. Individuals can lease eight Airbnb properties, and they can rent out many more if they register their business with the Department of Economic Development.
Airbnb hosts must follow the required safety, health, insurance, and amenity rules set by the government to protect the standards of hospitality. The Tourism Ministry of Dubai constantly keeps a check to maintain quality standards. However, these inspections are only done on registered Airbnb properties in the UAE.
Is Airbnb Financially Profitable in Dubai?
Yes, Airbnb can be highly profitable in Dubai due to the rise in the number of tourists and the need for short-term rental homes. Any individual can rent out their property to earn extra money or start a real estate company via Airbnb. The main ingredients for a successful business are the location of your property, management, and pricing.
Another benefit of Airbnb rental homes is that they remain highly in demand all year. Additionally, it is essential to comply with the tourism regulations and get an Airbnb license. With the right strategy and well-managed Airbnb property, you can make your business successful.
How to Start an Airbnb Business in Dubai?
The first step in running your business legally in Dubai is registering your company with the authorities. Here are the necessary steps involved in the registration process for Airbnb.
Market Research
Start conducting market research of Dubai’s Airbnb market by doing the following,
- Analyze the existing Airbnb properties, their spaces, prices, and customer reviews.
- Please find your target customers, i.e., families, tourists, or business travelers.
- Assess the advantages of different locations. Popular locations and proximity to public transport will make your business profitable.
Market research lets you set a competitive price and set up your Airbnb business effectively.
Select Your Company Name
Select a unique name for your business and make sure it follows the regulations of the UAE government. The name must not contain any offensive words, reference to religions or known brands, and no use of abbreviation if you’re using your name.
Select a Jurisdiction & Business Activities
To get your business license, you must select business activities. The right activities will help you select the right trade license, which will help you legally operate your business in Dubai.
It is essential to remember that you can only carry out your selected business activities. If the authorities find out about your extra business activities, you may face severe fines.
Get your Airbnb License in Dubai
The next step is submitting a trade license application to Dubai’s Department of Economic Development. There are several options of license that you can choose from,
- Holiday Home Rental License. This license is required to list your property as a rental home.
- Department of Tourism and Commerce Marketing License. You can get your DTMC license by submitting your passport, tenancy contract, and title deed of your property.
- No Object Certificate. Get an NOC or landlord’s approval if you are a tenant.
Apply for your Visa and Open Bank Account
After getting your Airbnb license in Dubai, you can apply for a visa to live and work in the UAE. Additionally, opening a corporate bank account is crucial for your business.
Property Maintenance
Make sure your property is properly maintained for guests by investing in high-quality decor and household items and maintaining cleanliness. If your property is well maintained, you will get more customer reviews and attract future customers.
Registering Property with Dubai Tourism
To register your property with Dubai Tourism, create an online account on Holiday Homes Operators Website. You can either register as a property manager or assign a third party as manager along with your passport or Emirates ID. Additionally, you’ll need to submit proof of Ejari registration and the title deed of your property.
After completing your account process, you’ll get payment details from Dubai Tourism to complete the registration process. The registration fee will be a minimum of AED 1,590. After completing your payment, you’ll get your license and Holiday Homes Operators Account details.
Marketing Your Airbnb Business
By creating a good Airbnb Dubai business plan and marketing strategy, you can attract more customers. Market your business using social media and different websites, and collaborate with your local Airbnb business to boost its visibility.
Create an Interesting Listing
A detailed listing will help you distinguish yourself from your market competitors. You can create a good listing by writing a good description of your business, using high-quality pictures, and offering competitive prices.
Documents for Airbnb License Dubai
Below are the documents you must submit for your Airbnb license in Dubai.
- Photocopy of your passport
- Your passport-sized photographs
- Your UAE residence visa
- Proof of ownership of your property
- NOC from your owner if you are leasing the property
- Airbnb license Dubai
- Application from the Department of Tourism and Commerce Marketing
- High-quality images of your property
- Attested rental agreement (if applicable)
- Your property insurance documents
These documents are necessary to comply with the local regulations and get your trade license.
Cost of Starting a Dubai Airbnb Business
The cost of starting an Airbnb business in Dubai ranges between AED 15,000 and AED 30,000. The cost can be different depending on your license type, Dubai Tourism charges, and other local and governmental approvals.
Final Thoughts!
Setting up your Airbnb business in Dubai can be really fruitful due to the rise in the number of tourists and demand for rental homes. By understanding the local market, getting a business license, following regulations, and making proper strategies, you can earn good profits. Business setup in Dubai is simple if you work with Al-Riyady. Our expert team is here to guide you through setting up your Airbnb business in Dubai. We can help you get your trade license and necessary permits and understand the local regulations. We can also help you get a UAE Golden Visa, open a bank account, get your trade license, and more.
