As incredible as it may sound, the world’s largest accommodation provider doesn’t own any hotels. Thanks to its technology model, Airbnb has grown from a single listing – the couch of the founder – to over seven million lodgings available at any given time. That’s more than the world’s top five hotel companies combined.
This success has presented an enormous opportunity to property owners worldwide. As long as it takes to snap a few pictures and upload a listing, you can start earning money by renting your space.
Demand for such services is constant and increasing in the UAE, which attracts over 15 million visitors a year. If you’re looking to start an Airbnb company in Dubai, this article contains all the key considerations and processes you need to know.
Starting an Airbnb company in Dubai: step-by-step
Before starting your Airbnb business, you should familiarise yourself with Dubai’s rules and regulations regarding real estate. Unlike many other jurisdictions, Dubai’s Department of Economy and Tourism (DET) stipulates that all Airbnbs listed in the emirate must be licensed.
As part of this licensing process, the owner or owners of any Airbnb properties must agree to comply with all building covenants and rules regarding tenancy contracts and landlord permissions. Property owners must also abide by all laws and regulations regarding safety and guest privacy.
After helping you get to grips with the short-term rental regulation here in Dubai, the team at Creative Zone will guide you through the following company formation process.
Step 1: Choosing a company name
Before submitting a license application, it is important to choose a compliant name for your business. There are a few key things to keep in mind throughout this process – many that would not apply anywhere else in the world.
Be aware that you must abide by a strict set of naming conventions. In short, you should avoid any offensive or blasphemous language. Avoid names of well-known organisations and avoid abbreviations if naming your company after yourself – i.e. Dave Mann Consulting, rather than D Mann Consulting. You must also check that your chosen name is available to register.
Step 2: Submit your license application
The next step is to apply for a license to let property in the UAE. The process here will differ slightly depending on whether you set up in a free zone or the mainland.
When setting up in the mainland, applications are made directly to Dubai’s Department of Economic Development (DED) or equivalent. When setting up in a free zone, applications are managed by the governing authority. In either case, we’ll manage your application on your behalf, liaising with all relevant stakeholders along the way.
Step 3: Make your visa application
To operate an Airbnb business in Dubai, you will require a visa in addition to a trade license. While some extra steps are involved, such as a medical and fitness test, with the right guidance, the visa application process can be incredibly straightforward. Once again, the team at Creative Zone will assist you through this step.
As the holder of a UAE business license, you can also sponsor others for their visas too. This could be a spouse, parent or child, or a domestic worker such as a housekeeper. The maximum number of visas you can apply for will depend on the size of your company, your chosen setup and, for dependant visas, your personal earnings.
Step 4: Register your properties with the DET
Finally, you must register any properties you intend to rent out with the DET before listing them on Airbnb.
This can be done online by submitting various documents, such as lease agreements and your Emirates ID number, along with details about the properties in question. In some cases, the DET may wish to inspect your accommodation before issuing your permit.
Benefits of starting an Airbnb business in Dubai
Strong tourism industry
An average of 327,000 people per week visited Dubai in 2023. This demand vastly outstrips the number of available hotel rooms in the emirate. Therefore, Airbnb landlords stand to benefit by providing accommodation to the millions of tourists and business travellers who arrive in the UAE every year.
Attractive returns
Average rental yields in Dubai are higher than in most major tourist hubs, including New York and London. With short-term rentals generating even higher returns, there is significant potential for profit in Airbnb properties.
Favourable regulations
While major cities worldwide are cracking down on Airbnb rentals, Dubai remains open for business. Short-term lets regulations are transparent and built to support landlords, property businesses and visitors to the UAE.
Tips for running a successful Airbnb business in Dubai
Perfect your listing
With tens of thousands of Dubai properties available on Airbnb, competition is fierce. So, it’s vital that your listing stands out. Make sure to take hi-res, professional-looking pictures of your accommodation and highlight any unique aspects or notable local amenities in your description.
Offer stellar service
Be sure to respond promptly to any queries or bookings. Offer advice on the local area as well as clear instructions for getting to the property and checking in.
Price competitively
Check out other listings in your area to ensure that you remain competitive on price. You can also use dynamic pricing tools to adjust rates based on demand and offer discounts for low season or extended bookings.
About Creative Zone
If you are new to the region, starting an Airbnb business in Dubai may seem like a complex operation.
That’s why selecting the right partner is critical when launching your business out here. As the most trusted business setup advisor in the Middle East, Creative Zone has been empowering entrepreneurs and SMEs with comprehensive support since 2010.
We offer a complete range of solutions for all your business setup needs – from licensing and visas to tax, accounting and legal support.
When you work with us, you get fast, reliable and unbiased advice on your unique business setup requirements. We can help you choose the right kind of license for your business activity and take you through the entire process from start to finish.
We’re here to assist every step of the way. Whatever your chosen activities, legal entity or visa requirements, we’re on hand with support, guidance and expertise. So, if you’re looking to lay the foundations for life in the UAE, Creative Zone is your ideal starting point.
Contact us today to kickstart your business in Dubai.
