- Do you have a spare room, apartment, or villa in Dubai that you don’t use often?
- Do you want to make some extra cash from your property without committing to a long-term lease?
- Do you enjoy hosting guests from different countries and cultures?
If you answered yes to any of these questions, then you might want to consider renting out your home on a short-term basis.
Short-term rentals are properties that are rented out for a few days, weeks, or months, usually through online platforms like Airbnb or Booking.com. They are also known as holiday homes, vacation rentals, or home-sharing. They are becoming increasingly popular in Dubai, as they offer both hosts and guests many benefits.
As a host, you can earn more money from your property by setting flexible prices according to the season and demand. You can also have more control over your availability and the type of guests you accept. You can also showcase your hospitality and culture to travelers from around the world.
As a guest, you can enjoy more space, comfort, and privacy than a hotel room. You can also save money on accommodation and food, as you can cook your own meals in a fully-equipped kitchen. You can also experience the local lifestyle and culture of Dubai by staying in a residential area.
Sounds tempting, right?
But before you jump into the short-term rental business, there are some things you need to know and do to make it a successful and rewarding venture. In this blog post, we will guide you through the steps and tips on how to make money from your home in Dubai with short-term rentals.
Step 1: Check the rules and regulations
The first thing you need to do before renting out your home on a short-term basis is to check the rules and regulations that apply to your property and location.
Short-term rentals are regulated by the Department of Tourism and Commerce Marketing (DTCM) in Dubai, which issues licenses and permits for holiday homes.
You need to obtain a license from DTCM before you can list your property on any online platform or accept any bookings.
To get a license from DTCM, you need to meet certain criteria and requirements, such as:
- You must be the owner of the property or have the permission of the owner to rent it out.
- You must rent out the entire property, not just a part of it.
- You must provide all the necessary amenities and facilities for your guests, such as furniture, appliances, linens, towels, toiletries, etc.
- You must ensure that your property is clean, safe, and well-maintained at all times.
- You must comply with the health and safety standards and guidelines issued by DTCM.
- You must pay a fee of AED 1,500 per year for each property license.
- You must pay a tourism dirham fee of AED 10–20 per night for each guest.
- You must register each guest’s details with DTCM within 24 hours of their arrival.
- You must display your license number on your online listing and at your property.
You can apply for a license online through the DTCM website 1 or through authorized operators 2. The process may take up to 30 days to complete. If you fail to obtain a license or follow the rules and regulations, you may face fines or penalties from DTCM.
Step 2: Prepare your home for guests
The next thing you need to do is to prepare your home for guests. This means making sure that your property is attractive, comfortable, and functional for your potential customers. Here are some tips on how to prepare your home for guests:
- Clean and declutter: Nobody likes a dirty or messy place. Make sure that your home is spotless and tidy before each guest arrives. Hire a professional cleaning service if necessary. Remove any personal items or valuables that you don’t want to share or risk losing. Create some storage space for your guests’ belongings.
- Decorate and furnish: Make your home look inviting and cozy by adding some touches of style and personality. Choose neutral colors and simple designs that appeal to most people. Provide enough furniture and seating for your guests’ comfort. Add some plants, flowers, art, or accessories to create some ambiance.
- Equip and stock: Provide all the essential amenities and facilities that your guests may need during their stay. This includes appliances, utensils, cookware, dishes, cutlery, etc. In the kitchen; towels, soap, shampoo, toilet paper, etc., in the bathroom; bed sheets, pillows, blankets, etc. In the bedroom; and a TV, Wi-Fi, air conditioning, etc.,
in the living room. You can also stock some basic items such as water, coffee, tea, sugar, salt, etc., for your guests’ convenience. Make sure that everything is in good working order and replace or repair anything that is broken or damaged. - Secure and protect: Ensure that your home is safe and secure for your guests and yourself. Install locks on the doors and windows and provide keys or codes for your guests. You can also install smoke detectors, fire extinguishers, first aid kits, etc., for emergency situations. You can also get insurance for your property and belongings in case of any accidents or damages.
- Personalize and welcome: Make your guests feel welcome and appreciated by adding some personal touches to your home. You can leave a welcome note or a guidebook with some information and tips about your home and the neighborhood. You can also offer some complimentary gifts or snacks for your guests, such as chocolates, fruits, or dates. You can also greet your guests personally or through a phone call or message and offer them any assistance or guidance they may need.
Step 3: Set competitive prices
The third thing you need to do is to set competitive prices for your home. This means finding the right balance between making a profit and attracting customers. Here are some tips on how to set competitive prices:
- Research the market: Compare your home with similar properties in your area and see how much they charge per night, week, or month. You can use online platforms like Airbnb or Booking.com to see the average rates and occupancy rates of your competitors. You can also use tools like AirDNA or Mashvisor to get more insights and analytics on the short-term rental market in Dubai.
- Consider the factors: Adjust your prices according to the factors that affect the demand and supply of your home, such as the season, the day of the week, the holidays, the events, the location, the size, the amenities, the reviews, etc. For example, you can charge more during peak seasons like winter or Eid, or during popular events like Expo 2020 or Dubai Shopping Festival. You can also charge more for larger or more luxurious properties or for properties with more features or facilities.
- Be flexible and dynamic: Change your prices frequently and strategically to optimize your revenue and occupancy. You can use tools like Beyond Pricing or PriceLabs to automate your pricing based on real-time data and algorithms. You can also offer discounts or incentives for longer stays, advance bookings, referrals, repeat customers, etc.
Step 4: Market your listing effectively
The fourth thing you need to do is to market your listing effectively. This means creating a compelling and attractive listing that showcases your home and attracts your target customers. Here are some tips on how to market your listing effectively:
- Write a catchy title: Your title is the first thing that potential guests see when they browse through the listings. Therefore, you should write a catchy title that summarizes the main selling points of your home, such as the location, the type, the size, the style, etc. For example, “Spacious 2-Bedroom Apartment with Sea View in Dubai Marina” or “Cozy Studio with Balcony near Burj Khalifa”.
- Write a detailed description: Your description is where you provide more information and details about your home and what you offer to your guests. Therefore, you should write a detailed description that covers all the aspects of your home, such as the features, the amenities, the rules, the check-in and check-out times, etc. You should also highlight the benefits and advantages of staying at your home, such as the convenience, comfort, value, etc. You should also mention the nearby attractions and activities that your guests can enjoy, such as the malls, the beaches, the parks, etc. You should also write in a clear, concise, and friendly tone that reflects your personality and brand.
- Add high-quality photos and videos: Your photos or videos are where you show your home to your potential guests. Therefore, you should add high-quality photos or videos that capture the best angles and features of your home. You should use natural light, bright colors, and wide shots to make your home look spacious and appealing. You should also include photos or videos of every room and area of your home, as well as the exterior and the surroundings. Check this link (bottom of page) for a free guide on 12 ways you can use video to sell more properties
Step 5: Manage your bookings and reviews
The last thing you need to do is to manage your bookings and reviews. This means handling the communication and transactions with your guests before, during, and after their stay. Here are some tips on how to manage your bookings and reviews:
- Communicate promptly and politely: Communication is key to building trust and rapport with your guests. Therefore, you should communicate promptly and politely with your guests throughout their booking process. You should respond to their inquiries, requests, or feedback within 24 hours or less. You should also confirm their bookings, send them directions and instructions for check-in and check-out, and thank them for their stay. You should also use a friendly and professional tone that matches your brand and personality.
- Accept or decline bookings wisely: As a host, you have the right to accept or decline any booking request that you receive. However, you should do so wisely and fairly. You should accept bookings that meet your criteria and expectations, such as the number of guests, the duration of stay, the purpose of visit, etc. You should also accept bookings that are likely to result in positive reviews and ratings for your home. You should decline bookings that do not meet your criteria or expectations, such as the ones that are too short or too long, too cheap or too expensive, too risky or too demanding, etc. You should also decline bookings that are likely to result in negative reviews or ratings for your home.
- Request or write reviews honestly: Reviews are crucial for your reputation and success as a host. Therefore, you should request reviews honestly for each guest who stays at your home. Request reviews from your guests within 14 days of their check-out date.
By following these steps and tips, you can make money from your home in Dubai with short-term rentals.
You can also enjoy the benefits of being your own boss, meeting new people, and sharing your home and culture with them.