Previously, we covered long-term rentals — their regulations, tenant protection, and limitations.

Now, let’s look at short-term rental in Dubai: how it differs from long-term leasing, its advantages and drawbacks, and how this format works from the perspective of both tenants and property owners.

Short-term rentals in Dubai operate under a hospitality framework, not traditional tenancy law.

How the Model Works

Short-term rental in Dubai operates under a hotel-style legal framework.

  • An Ejari contract is not used.
  • Instead, the apartment is registered through a licensed Holiday Homes operator with Dubai Economy & Tourism (DET).
  • A separate permit is issued for each individual apartment.
  • Property owners cannot rent out units independently — a valid Holiday Homes license is required.
  • This activity is classified as commercial, which means it is subject to VAT.

For the Property Owner (Landlord)

➕ Advantages

  • Flexible rent pricing and yield management
  • Faster removal of guests in case of non-payment
  • The property remains vacant from a sales perspective
  • Higher asset liquidity
  • A clear and legally protected operating model

Pro Tip

Pro tip: Holiday Homes allows owners to preserve resale flexibility, as the unit is not locked into long-term tenancy contracts.

➖ Disadvantages

  • Mandatory apartment preparation according to DET standards
  • Full furnishing and equipment requirements
  • Higher upfront investment compared to long-term leasing

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For the Tenant

➕ Advantages

  • Fast move-in process
  • Fully ready-to-live apartment
  • No need to purchase furniture or household items
  • Monthly payment options are often available
  • Flexible move-out conditions
  • Convenient for relocation and temporary stays

➖ Disadvantages

  • Rental price may be revised after the agreed rental period

Documentation

Registration with Dubai Economy & Tourism allows tenants to obtain official proof of residence.

Such documents are accepted by banks and certain institutions even when the stay is short-term.

What Tenants Should Pay Attention To

  • Deposit amount
  • Terms and timelines for deposit refunds
  • Apartment inspection at check-in
  • List of included services

📌 Key Takeaway

When structured correctly, a short-term rental strategy in Dubai preserves property liquidity for owners, minimizes litigation risks in cases of non-payment, and allows tenants to secure a fully furnished, ready-to-use apartment in a very short timeframe.