It’s no secret that Dubai offers rental yields as high as 10% in some residential localities and the average percentage being at 7% also gets a commendable investor interest in the market. While people can benefit from the said yields by buying apartments in specific location and placing them on rents, they can only reap their rewards once a year since rents are paid annually in Dubai. But here is another way that can allow you to reap those rewards on monthly, weekly or even daily basis, and you don’t even have to own a property in Dubai to do that.
Holiday Homes is the name of the game in Dubai these days. At first, one was supposed to buy an apartment, furnish it and secure a holiday home license through an approved Dubai Tourism operator, but now things have changed for the better. Thanks to new rules, even tenants can sublet their units as holiday homes and all they need is a holiday home licence. The best part, one doesn’t have to go through an approved Dubai Tourism operator to secure a licence as Dubai’s Department of Tourism & Commerce Marketing is entertaining direct application from all property owners and tenants now.
A news source has recently reported that Dubai Tourism’s Online Permitting System was allowing users to submit and update information, pay fees, schedule inspections, track the status of their application, and print their final record 24×7.
Per government regulations, a Holiday Home is a furnished accommodation which could be rented as a whole unit on a daily, weekly, monthly or annual basis without the issuance of an Ejari agreement and should be registered with DTCM through either licensed operators or individual homeowners or tenants.
Here are the necessary steps for being a home-owner in Dubai.
- Register at Dubai’s Department of Tourism & Commerce Marketing Holiday Homes website.
- In the ‘Registration Type’ column choose ‘Home Owner’.
- In the Manager List tab, click on Add New and provide details such as passport and Emirates ID numbers and contact details of the property’s proposed manager. This can be either the homeowner or any other person appointed by the homeowner on his behalf as the authorised personnel.
- Upload scanned copies of the manager’s Emirates ID.
- Once the application is submitted successfully, the applicant will receive a record number and an e-mailed acknowledgement along with the username/password for his/her account. The account will be activated within 2 working days.
- Once the account is activated, the applicant may log on to the same website. Dubai Tourism will shortly allow for all e-commerce payments to be done digitally.
- Until that’s done, one can visit the Dubai Tourism office in Garhoud between 8am and 5pm with the required documents to pay the fees.
- Once that is done, the applicant will get his/her final licence depending on the number of rooms in their property, as well as the term intend to let the property out as a holiday home.
The following documents are required to be submitted
- For homeowners, proof of homeownership (copy of Title Deed + Dewa bill/s).
- For tenants, a No Objection Certificate from homeowner (and homeowner’s relevant documents like Title Deed, Passport Copy), Authorisation Letter from homeowner, Ejari registration, Dewa bill/s.
Additional information: The annual registration fee is AED 1,500 and unit classification fee is AED 50. Apart from that, Relevant Knowledge Fee of AED 10 and Innovation Fee of AED 10 is also payable with all government-related transactions, bringing the total to AED 1,570.
(Source:blog.bayut.com) (Picture Courtesy: DAKUOGRPAHY 2015 | ammarhzaidi@gmail.com)
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