Dubai flat on short-term lease? Dh100,000 fine if not licenced

Are you leasing your apartment on a short-term basis in Dubai?

If so, then apply for a licence now, or you will face a fine that could go up to Dh100,000.

A regulation issued under Decree No. (41) of 2013, regulating the activity of leasing out holiday homes in Dubai, stipulates offenders can face fines of up to Dh100,000 if they have repeated the same violation within one year from the date of the previous offence.

“The amount of the fine will be doubled, provided the fine does not exceed Dh100,000.

“The Chairman of the Executive Council will determine, pursuant to a resolution issued by him in this regard, the prohibited acts and the fines to be imposed on the perpetrators of these acts,” states the decree.

Caught, first-time offenders will face a fine of not less than Dh200 and not more than Dh20,000, the decree states.

Last week, the Department of Tourism and Commerce Marketing (Dubai Tourism) said 37 operators have been licenced to rent out holiday homes, with close to 800 units registered in the holiday home system.

However, hundreds of individuals are still advertising their apartments online as holiday homes, with monthly rentals almost twice what normally rented-out apartments cost.

“We have made great progress in setting up regulations for holiday homes.

“These are designed to benefit both home owners and guests, by ensuring the holiday home market is aligned with the rest of Dubai’s tourism industry and maintains the high standards for which the emirate is known,” said Khaled Bin Touq, Executive Director, Licensing & Classification Sector at Dubai Tourism.

“Visitors can choose from a wide range of holiday homes throughout the city, knowing that the property and operator are fully licenced and will meet all of their requirements.

“We, therefore, urge all operators and owners renting out holiday homes to ensure their properties are licensed through Dubai Tourism in order to benefit from being part of Dubai’s tourism framework and from the city’s increasing number of visitors.”

The decree ensures visitors booking their accommodation through licensed operators are assured that the property they are booking is of a certain quality, has the appropriate insurances and is managed by a qualified party.

Dubai Tourism is responsible for regulating the holiday home market with the objective of bringing the segment in line with the regulation of the hotel sector as the emirate is aiming to welcome 20 million visitors per year by the start of the next decade.


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