8
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8
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You've listed your Dubai property for long-term rent. Weeks pass. Maybe months. Enquiries come and go. Negotiations stall. The right tenant never materialises.
Meanwhile, carrying costs accumulate. Service charges, utilities, maintenance, money flowing out with nothing coming in. If this sounds familiar, short-term rentals deserve consideration. Not as a last resort, but as a potentially better strategy for your property and market.
Dubai's long-term rental market is competitive. Vacancies occur for reasons often outside owner control.
What you expect may not match what the market will pay right now. Similar units in similar buildings compete for the same tenant pool. Corporate leasing cycles, seasonal demand shifts, and economic conditions affect tenant availability. And lengthy negotiation cycles often end with no commitment.
Extended vacancy isn't necessarily about your property. It's often about market dynamics.
Short-term rentals bypass many long-term market challenges.
Instead of competing for long-term tenants, you're accessing a different demand pool of tourists, business travellers, and relocators. Continuous booking opportunity means new bookings are possible daily rather than waiting for a single tenant. Price flexibility allows adjusting rates to current demand rather than negotiating fixed annual contracts. And market responsiveness lets you capture premium rates during peak periods while adjusting during slower times.
In prime locations, short-term rentals in Dubai often generate significantly more revenue than long-term leases, even accounting for operational differences.
A JBR 1-bedroom apartment generates approximately AED 80,000–100,000 annually as a long-term rental. The same unit as a short-term rental generates AED 292,000 annually when professionally managed.
A Downtown 1-bedroom converted from long-term rental previously generated around AED 80,000–100,000. It now generates AED 215,000 annually as a short-term rental.
On average, professionally managed short-term rentals in Dubai generate 27% higher returns than long-term leases. The premium reflects both market demand and operational execution.
Switching from long-term to short-term involves significant operational shifts.
Guest turnover means instead of one tenant for a year, potentially dozens of guests, each requiring check-in, check-out, and turnover preparation. Cleaning requirements mean professional cleaning after every stay, not occasional tenant-organised cleaning. Communication volume increases with ongoing guest messaging rather than periodic landlord-tenant interaction. Pricing management involves dynamic rate adjustments rather than fixed annual rent. And compliance requirements including DTCM licensing, guest registration, and tourism fees don't exist for long-term rentals.
These differences require either owner commitment or professional management.
Short-term rentals in Dubai require DTCM licensing before operation begins.
A holiday home licence application and approval is required, along with guest registration for every stay and tourism fee collection and remittance. With proper documentation, licensing typically completes within approximately two weeks.
Unlicensed operation risks fines, platform removal, and legal exposure. Compliance isn't optional.
Long-term rentals are often unfurnished, but short-term rentals require full furnishing to guest-ready standards. Professional listing images significantly impact booking rates. Accounts on Airbnb, Booking.com, and other channels need creation and optimisation. Initial rates and ongoing adjustments require market understanding. And cleaning, maintenance, and guest support systems need establishment.
The transition involves investment and effort, but so does continued vacancy.
Short-term rentals work best when the property is in a high-demand tourist or business location, when long-term tenant demand is weak or inconsistent, when you're comfortable with operational differences or delegating them, when revenue optimisation matters more than simplicity, and when the property is suitable for furnishing and guest stays.
Not every property suits short-term. Location, building rules, and property type all matter.
Some buildings prohibit holiday home use. Some locations have weak tourist or business demand. Some properties are unsuited to guest accommodation. Some owners prioritise simplicity over revenue optimisation. And sometimes a tenant is genuinely close to signing.
Evaluate honestly rather than assuming one approach fits all situations.
Self-managing a short-term rental requires significant time and attention. For owners converting from long-term, where involvement is minimal, this adjustment often surprises.
Professional short-term rental management absorbs operational demands entirely including guest communication and booking management, cleaning and turnover coordination, pricing optimisation and platform management, compliance handling, and maintenance response.
This allows owners to capture short-term revenue benefits without short-term operational burdens.
If long-term tenant search has stalled, short-term rentals may offer a better path forward. An assessment can clarify revenue potential for your specific property, licensing and compliance requirements, furnishing and setup needs, and management options. Request a short-term rental evaluation.
Experience stress-free property management with our top-tier service.
Estimate your revenueGet in touch with our team to discover the perfect solution for your real estate portfolio.
First Class Property Management
Office 301, Al Zarouni Business Centre,
606 Sheikh Zayed Road,
Al Barsha First, Dubai, UAE
4 min read
Dubai’s dynamic property market presents a clear choice for owners: stick with traditional long-term tenants or tap into the booming short-term rental market through platforms like Airbnb and Booking.com. But which option really gives you the best return on investment? With Dubai’s tourism on the rise and changing tenant behaviour, understanding the differences between short-term and long-term rentals can help you make a smarter decision for your property and your income goals.
Dubai's economy and tourism sector are experiencing remarkable growth, making this a pivotal moment for property investors. The city's Department of Economy and Tourism (DET) reported a record-breaking 18.72 million international overnight visitors in 2024, a 9% increase over the previous year. This surge, coupled with a strategic push to diversify the economy and the rise of remote work, has created a golden opportunity for property owners.
Short-term rentals typically refer to fully furnished properties available for stays ranging from a few days to several months. Dubai’s popularity as a global tourist and business hub has fueled demand for short-term accommodation options, attracting both holidaymakers and corporate travellers. Licensed through Dubai’s Department of Tourism and Commerce Marketing (DTCM), short-term rentals must meet specific quality and safety standards, giving owners a regulated legal path to higher earnings.
For landlords, this means the flexibility to adjust rates, use their property between guest bookings, and potentially earn up to 20–30% more than with a year-long lease. However, short-term rentals do require more active management, guest support, and regular maintenance, which is why many property owners turn to a specialist like First Class Property Management to take the hassle away.
A long-term rental in Dubai usually involves a 12-month Ejari-registered tenancy agreement, with many landlords offering unfurnished apartments or villas. This traditional route attracts residents, families, and professionals looking for stability and predictable housing costs. Long-term contracts can be appealing because they guarantee occupancy and steady cash flow, reducing the stress of managing constant guest turnover.
However, these leases come with their own challenges: finding reliable tenants, handling maintenance issues, and being tied to fixed rental prices for a full year - even if the market shifts. Owners must also factor in overhead costs such as security deposits, agency fees, and annual housing fees.
Short-term rentals offer maximum flexibility, letting owners reclaim their property for personal use between bookings. These arrangements usually include furnished spaces, housekeeping, and even concierge-style services. Platforms like Airbnb make marketing straightforward, but guest turnover requires ongoing time or a professional manager.
Long-term rentals, meanwhile, lock you into a yearly lease with fewer interruptions. You’ll typically leave tenants to handle their own bills and basic upkeep. However, if you need to move back in or sell unexpectedly, early lease termination can be costly and complicated.
Short-term tenants expect a “home away from home” - modern furnishings, equipped kitchens, strong Wi-Fi, and even premium extras like Netflix subscriptions or a welcome basket. First Class, for instance, uses its expert designers to stage properties to five-star hotel standards, creating a guest experience worthy of a 4.9 Superhost badge.
Long-term tenants usually bring their own furniture and sign for utilities in their name. While this means fewer upfront costs for the landlord, it can lower the property’s appeal to potential guests or premium renters in Dubai’s competitive market.
There is no one-size-fits-all answer. If you value stability, long-term rentals can be a safe bet. But if you want higher returns, flexibility, and the ability to adjust with Dubai’s booming tourism trends, short-term rentals can be a powerful strategy.
First Class Property Management offers a proven system - with luxury staging, seamless guest support, and 27% higher returns - to help property owners unlock the full earning potential of Dubai’s short-term rental market. Connect with our team to see how you could elevate your investment, stress-free.
Get in touch with our team to discover the perfect solution for your real estate portfolio.
First Class Property Management
Office 301, Al Zarouni Business Centre,
606 Sheikh Zayed Road,
Al Barsha First, Dubai, UAE
5 min read
Airbnb in Dubai is not just popular - it’s booming. But to stand out among thousands of listings and truly maximize your profit, you need to go beyond simply uploading photos and setting a nightly price. As a property owner, you can capture more bookings, higher nightly rates, and five-star reviews with a smart, data-led approach. Let’s dive into the strategies that will help you achieve that.
Dubai attracts millions of visitors every year, making it a perfect short-let hotspot. However, this also means intense competition. Tourist seasons, Expo events, and global conferences create surges in demand, while quieter months can see occupancy dip. Successful hosts stay ahead of these patterns with dynamic pricing and by partnering with expert management firms like First Class, who have proven systems to maintain 90%+ occupancy year-round.
Additionally, remember Dubai requires all short-term rentals to be licensed with DTCM, ensuring full compliance. Working with a professional operator guarantees your listing meets these strict requirements.
Too many Dubai hosts stick with a single rate throughout the year. This leaves profit on the table. Instead, dynamic pricing allows you to change nightly rates based on: Real-time demand, Competitor pricing, Local events, Holiday periods.
Using advanced software or a management partner’s pricing team can help you earn 20–30% more revenue. First Class, for example, uses data-driven algorithms to optimise rates daily, balancing maximum occupancy with top-tier nightly returns.
Travellers expect more than a place to sleep - they want an experience. Dubai’s Airbnb guests in particular are drawn to properties with luxury finishes, modern appliances, fast Wi-Fi, and hotel-level cleaning. Upgrades like smart locks, automated lighting, and energy-efficient appliances boost appeal while making operations smoother.
First Class ensures all managed properties meet a five-star standard, which is why the average review scores stand above 97.8% - a powerful signal that great features equal higher profits.
Great reviews drive repeat bookings and a stronger Airbnb ranking. That means you must go beyond simple hospitality: offer easy check-in and check-out, communicate proactively, resolve issues fast, provide local recommendations, add personal touches like welcome hampers.
First Class uses a dedicated Guest Experience Manager and 24/7 support so guests feel valued, cared for, and eager to book again. This strategy is what keeps review scores sky-high and maximizes repeat stays.
Automation is the backbone of any profitable Airbnb operation. Whether it’s syncing calendars to avoid double-bookings, scheduling cleaners, or sending automated guest messages, modern tools take the stress off your shoulders.
Combined with a management service like First Class - who handles everything from listing photography to guest reviews - automation ensures you can focus on growing your portfolio instead of fighting fires.
Dubai’s Airbnb market offers incredible profit potential if you do it right. A professional approach to pricing, luxury interiors, guest experience, and compliance can unlock far higher returns than you’d see from a long-term lease.
First Class Property Management helps property owners achieve up to 27% more revenue with a seamless, full-service solution. If you’re serious about maximising Dubai short-let profits, our expert team is ready to help you make it happen.
Get in touch with our team to discover the perfect solution for your real estate portfolio.
First Class Property Management
Office 301, Al Zarouni Business Centre,
606 Sheikh Zayed Road,
Al Barsha First, Dubai, UAE
What Owners Need to Know
4 min read
Dubai’s booming short-term rental market presents a major opportunity for property owners - but before listing your property on Airbnb or Booking.com, you’ll need to understand the legal requirements. The most important? Getting a holiday home license in Dubai. This guide breaks down the full process, costs, rules, and how to stay compliant in 2025.
A Holiday Home License is a government-issued permit that allows individual homeowners or professional operators to legally rent out furnished properties on a short-term basis. It’s issued and regulated by the Dubai Department of Economy and Tourism (DET, formerly DTCM)
Without this license, you cannot legally operate a holiday home or Airbnb in Dubai.
You’ll need a license if:
- You’re a homeowner looking to rent out your property on a short-term basis
- You’re a tenant renting with a No Objection Certificate (NOC) from your landlord
- You’re a management company running short-let properties on behalf of owners
Only individuals (up to 8 properties) and licensed operators can apply.
Step-by-Step Process:
e.g. title deed, passport copy, Emirates ID, DEWA bill
AED 1,500 for individuals (additional tourism fee applies)
Some units may be reviewed for safety and amenities
You can now list your property on platforms like Airbnb
Once licensed, you must:
Avoid hosting in buildings where short-term rentals are explicitly banned by the building management or developer
Operating without a license can lead to:
Yes, but:
- Individuals can license up to 8 units
- For more than 8, you must register as a Professional Operator
- Professional operators must meet additional staffing, office, and record-keeping requirements
The Dubai holiday home license process is straightforward - but getting it right is essential. Whether you manage your own listing or hire a professional operator like First Class, staying compliant ensures smooth operations and maximized returns.
Get in touch with our team to discover the perfect solution for your real estate portfolio.
First Class Property Management
Office 301, Al Zarouni Business Centre,
606 Sheikh Zayed Road,
Al Barsha First, Dubai, UAE
10 min read
Dubai's holiday home regulations aren't bureaucratic obstacles — they're the foundation that separates legitimate operators from those who eventually face fines, suspensions, or forced closure.
With enforcement tightening and regulatory expectations evolving, understanding compliance isn't just about avoiding penalties. It's about protecting your income stream, your asset, and your ability to operate long-term. This guide explains how the regulatory framework works, what's required, and how to stay protected as rules continue to develop.
The Department of Tourism and Commerce Marketing (DTCM) oversees all holiday home operations in Dubai. Their jurisdiction covers licensing and permit issuance, operational standards and inspections, guest registration requirements, tourism fee collection and remittance, and enforcement and penalties.
There are no exemptions for small operators, occasional rentals, or owner-managed properties. The rules apply equally to everyone.
Operating a holiday home without a valid DTCM licence is illegal. Full stop.
Anyone renting property short-term in Dubai needs a licence, whether properties are listed on Airbnb, Booking.com, or any platform, or marketed privately. This applies to individual owners and professional operators alike.
The process involves application through the DTCM portal, documentation submission including title deed, ID, and property details, property inspection in some cases, and permit issuance upon approval. With correct documentation, most licences are approved within approximately two weeks. Licences require annual renewal, and lapses create immediate compliance exposure.
Not every property automatically qualifies for holiday home licensing.
Eligibility depends on building approval status for short-term rentals, community and master developer rules, safety and access requirements, and property classification and condition. Both apartments and villas can be licensed, but requirements may differ. Some buildings prohibit short-term rentals entirely, while others have specific approval processes.
Verifying eligibility before investing in furnishing or marketing prevents wasted resources.
Guest registration is where enforcement is most active. Owners must register every guest with DTCM, collect and verify valid identification, submit registration within required timeframes, and maintain accurate records.
Failed registrations are among the most common triggers for penalties. Authorities cross-reference platform bookings against registration records. Automated registration systems eliminate manual errors and ensure every stay is properly documented.
Holiday home operators must collect and remit Tourism Dirham fees. These are charged per room, per night, with amounts varying by property classification. Fees must be collected from guests and remitted to authorities on schedule.
Late payments trigger penalties. Incorrect calculations create audit exposure. Non-remittance can result in licence suspension. This is an area where small errors compound into significant problems, making systematic handling essential.
Dubai actively enforces holiday home regulations. Common triggers for penalties include operating without valid licence, failed or late guest registrations, tourism fee errors or non-payment, breaching building or community rules, and safety standard violations.
Consequences range from financial penalties varying by violation severity, to licence suspension, platform delisting, and in serious cases, forced operational closure. A zero-fines compliance record is only achievable with consistent systems and oversight.
Beyond DTCM requirements, individual buildings and communities may impose additional rules covering short-term rental restrictions or prohibitions, guest access and security procedures, noise and behaviour policies, and parking and common area usage.
Violating building rules can result in fines from building management, complaints triggering DTCM attention, operational restrictions, or forced exit from short-term rental activity. Understanding tower-level policies before committing to a property prevents costly surprises.
While specific 2026 regulatory updates are still being finalised, enforcement trends indicate increased scrutiny of guest registration accuracy, tighter auditing of Tourism Dirham compliance, greater coordination between platforms and regulators, and reduced tolerance for operational errors.
Owners relying on informal approaches or hoping issues won't be noticed face increasing risk. The regulatory environment is maturing, not loosening.
Many owners fall into non-compliance unintentionally. Frequent issues include assuming Airbnb handles compliance automatically (it doesn't), missing guest registrations during busy periods, delaying Tourism Dirham submissions, operating during licence renewal gaps, misunderstanding villa eligibility requirements, and ignoring building-specific restrictions.
Each mistake creates exposure. Compounded over time, they create serious operational risk.
Compliance isn't a one-time task — it's ongoing operational discipline. Professional management protects owners through automated guest registration workflows, systematic tourism fee handling, licence renewal tracking, building rule monitoring, audit-ready documentation, and regulatory update monitoring.
Properties under professional compliance management maintain clean records — zero fines, zero suspensions, zero disruptions
Compliance isn't just about avoiding penalties. It's about protecting income. Licenced properties list on all platforms without restriction. Clean records prevent sudden delisting or suspension. Strong compliance supports premium pricing and guest trust. Regulatory protection becomes a competitive advantage.
Owners who treat compliance as an afterthought eventually pay — through fines, lost bookings, or operational shutdown.
Unsure whether your property meets current requirements? A compliance review identifies gaps, clarifies obligations, and ensures your operation is protected before issues arise. Request an assessment of your regulatory position.
Look for a partner who’s proactive, transparent, and aligned with your goals.
Get in touch with our team to discover the perfect solution for your real estate portfolio.
First Class Property Management
Office 301, Al Zarouni Business Centre,
606 Sheikh Zayed Road,
Al Barsha First, Dubai, UAE
