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Short-term rentals in Dubai: The penalty for illegal rent is AED 5000

Thursday, 02 April 2015

Property owners in Dubai, who give short-term rental housing without a license will be punished by a fine of AED 5000.

The Dubai Municipality banned delivery of housing in the short-term lease without a license in June 2014, however, was not carried out any checks and penalties for violation of this rule does not apply.

Due to the excess of the hotel market of supply over demand and due to the neglect of this prohibition homeowners, Dubai Municipality tightens control over its execution and introduces a fine of AED 5000 (US $ 1362) for illegal delivery of apartments and villas for short term rentals.

The Department of Tourism and Commerce Marketing has issued 39 preliminary permits operators to guest suites. The cost of applying for a permit is 110 AED. Prior authorization will depend on a number of factors, including the lack of a formal objection by the Association of apartment owners. After obtaining the prior permission of the audit process should premises and issue the license operator guest suites.

The cost of a license depends on several factors, including - the number of managed apartments. In addition, the applicant must pay a fee of 300 AED per year from each bedroom and AED 50 for assigning classification (by analogy with the stars at the hotel).

The owner of one or a pair of flats can not get a license for the surrender of a short-term lease until he does sign a contract with a management licensed company. It necessary to have for management company in its portfolio of at least 20 housing units.