Dubai’s Holiday Homes Market: Getting Started as an Airbnb Host & Maximizing Success in Your Airbnb Business

Dubai Holiday Homes - Starting an Airbnb Business

Congratulations on your Dubai property investment! As the city continues to attract millions of visitors each year, turning your holiday homes into a vacation rental can be lucrative. This comprehensive guide will walk you through the steps to transforming your investment into an Airbnb business.

First Step: Setting Up Your Vacation Rental

1. Legal Requirements (Your Top Priority)

Before diving into the short term rental business in Dubai, you’ll need to know the essentials:

1. Obtain a Dubai Department of Tourism and Commerce Marketing (DTCM) License

Keep in mind: You will be responsible for collecting the Tourism Dirham from your guests and report to DET. Current fees are AED 15 per night for Deluxe bedroom and AED 10 per night for Standard bedroom. 

2. Get Necessary Insurance Coverage

While online platforms like Airbnb includes host protection insurance, they may not meet your insurance coverage needs.

Review your renter’s or homeowner’s policy with your insurance broker and make sure you have adequate coverage.

3. Property Preparation

Once your license is sorted, it’s time to get your holiday homes guest-ready.

Essential Furnishings:

  • Living spaces: Comfortable, modern furniture
  • Bedroom: Quality mattresses and linens
  • Kitchen: Full set of appliances and cookware
  • Estimated budget: AED 30,000-100,000 (Varies by property size and luxury level)

Safety Requirements – Ensure your property meets all safety standards:

  • Fire extinguishers and smoke detectors
  • First aid kit
  • Emergency contact list
  • Building security access cards/codes
  • See The Guide for further details

Smart Additions That Boost Bookings:

  • High-speed WiFi (essential!)
  • Smart TV with streaming services (i.e. Netflix)
  • Keyless entry system to make check-in easier
  • Basic cleaning supplies
  • Provide items that make the space more comfortable for long-term guests (fridge, microwave and coffee maker)
  • Provide clean sheets, towels and toilet paper. (To score the highest ratings, you’ll need to go above and beyond those basics.)
  • Providing cleaning services between reservations.

Second Step: List Your Property

1. Vacation Rental Sites for Dubai Holiday Homes

If you are listing your holiday homes in Dubai, you will be quite the outlier if you are not using at least one of these. To help you find which website is best for short term rentals, we’ve compiled a list (ranked in no particular order) of the vacation rental sites:

Global Vacation Rental Website

  • Airbnb
  • Booking.com
  • VRBO (Vacation Rental By Owner)
  • Agoda
  • Expedia

Local Vacation Rental Website

  • Bayut
  • Property Finder
  • Dubizzle

List through a Property Management Company

Investors also frequently engage property management companies to oversee their holiday homes, leveraging their comprehensive services and expertise. For a 15-25% cut, they do all the heavy lifting and handle the nitty-gritty.

  • Multi-site listing on local and global platforms
  • Offer interior design and professional photography services
  • Get your property set up, listed and DTCM compliance ready
  • Local market and regulations understanding
  • Handles housekeeping and cleaning
  • Concierge services available
  • Pricing optimization tool

2. Creating a Standout Listing

Authenticity sells.

Your listing’s honesty directly impacts guest satisfaction, review quality, and booking frequency. Instead of hiding flaws or overselling features, focus on what makes your property genuinely special.

And, when guests know exactly what to expect, they’re more likely to leave positive reviews and become repeat customers.

Highlight what’s unique about your holiday homes:

  • Location advantages – prime spots near attraction
  • Exclusive amenities – from rooftop pools to smart home features
  • Stunning views – facing Burj Kalifa, beach, or Marina view
  • Local experiences – walking distance to restaurants, shops, and entertainment

Invest in professional photography (AED 1,000-2,000):

  • Build instant trust with potential guests
  • Reduce pre-booking questions
  • Show accurate space dimensions (no deceptive wide-angle shots!)
  • Highlight accessibility features like step-free access

3. Master Your Pricing Strategy

In Dubai’s dynamic short term rental market, having access to accurate market data isn’t just helpful – it’s essential for success. Here are some strategies you can use to maximize your property’s earning potential.

Smart Seasonal Pricing

  • High Season (October-April): Capitalize with 30-50% rate increases
  • Low Season (May-September): Offer competitive (lower) rates
  • Special Events: Implement premium pricing during Expo, festivals
  • Extended Stays: Attract longer bookings with strategic discounts

Leverage on Powerful Pricing Tools

1. For example, if you list with Airbnb, their pricing tool can:

  • Show you exactly what nearby properties are charging.
  • Give you the heads-up when adjust rates based on demand surges
  • Set minimum stay requirements to reduce turnover. Less cleaning costs, more longer bookings.
  • Offer extra service (cleaning, equipment rental, pet-friendliness or local tours) to boost income

Source: Airdna

2. Consider using AirDNA, it can be a game-changer for your rental strategy. AirDNA helps property investors to:

  • Set optimal pricing strategies based on real market data
  • Choose profitable locations for new investments
  • Identify high-demand amenities that increase bookings
  • Adjust rates during seasonal changes and local events

Ultimately, your earning potential depends on:

  • Pricing – How much you charge for your space
  • Occupancy – How often you can rent it out

Both of those things depend on how much time and money you spend on furnishing and maintaining your Airbnb property.

Third Step: Hire Help

Running an Airbnb business can take up more time than you expect. Your ranking depends on stellar reviews across experience, cleanliness, communication, and more. The higher you rank, the more bookings you’ll attract.

The more effort you put into your space to make it as beautiful, functional and comfortable as possible — and the more time you allot to responding to guest concerns — the better your reviews and ratings will be. Responding to inquiries quickly is key.

So you may want to get help with guest experience who can:

  • Answer guest messages within an hour
  • Handle check-ins smoothly
  • Tackle repairs and emergencies
  • Share insider local tips that wow guests
  • Manage guest reviews

Pro Tips for New Hosts

  • Start with one platform (recommended: Airbnb) and expand later
  • Price slightly below market for first few months to build reviews
  • Create a guest communication template library
  • Build relationships with reliable service providers
  • Consider hiring a property manager if you’re not locally based
  • Consider hiring a dedicated property assistant if you don’t want to hire a property manager company
  • Join local Airbnb host groups or connect with experienced holiday homes owners for additional insights and support.

Common Pitfalls to Avoid

  • Underestimating setup costs
  • Skipping professional photos
  • Insufficient guest screening
  • Poor pricing research
  • Delayed maintenance
  • Inadequate guest communication

The Bottom Line

Starting an Airbnb business in Dubai isn’t rocket science, but you definitely need to put in the work. Focus on creating an exceptional guest experience, maintain high standards, and stay compliant with local regulations. Dubai offers incredible rental opportunities, and the well-managed holiday homes will consistently deliver strong returns for property investors.

Next: Interview with Dubai Property Investor Kristina Bazzy

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