- Broker Directory
- My Tools
- News & Advice
- Market Trends
- Other GN Sites
The legal status of the holiday home sector in Dubai has opened up a new source of generating revenue for property owners who are jittery about leasing their properties for the long term.
Dubai's Department of Tourism and Commerce Marketing (DTCM) has unveiled a raft of measures which, it claims, will benefit visitors and homeowners while giving tourism a boost.
For the past few years, many property owners had rented out their homes in areas like Palm Jumeirah to short-term visitors. But many tourists complained that some of the amenities promised in the advertisements were not met. Since the arrangement had no legal sanction, the visitors could not complain to the authorities or claim compensation.
Under the new law, a homeowner cannot directly enter into an arrangement with tourists, but needs to enlist his property with a licensed holiday home operator. According to DTCM, by employing licensed holiday home operators, homeowners will be able to market their property better since it is handled by professionals. The move will also assure visitors that the properties handled by registered entities will have the facilities promised to them at the time of booking. To apply for a holiday home operator license, one has to have a minimum of 20 properties in its portfolio. Holiday homes will be classified into two categories: standard and deluxe, depending on the size of the beds and the amenities being provided.
According to experts, renting your home for the short term can fetch handsome rental yields more than long-term leases. However, the big challenge is to find takers during off season. The other disadvantage is the furniture and electronic items, like refrigerators and televisions, will undergo more wear and tear because of constant change of hands.
Hospitality industry experts believe residential properties located in Palm Jumeirah, Downtown Dubai and Jumeirah Beach Residence will attract visitors as these are located close to many of the tourist spots.
• Holiday homes will be classified into standard and deluxe as per amenities, etc.
• Owners of holiday homes are mandated to enlist their homes with an operator
• Palm Jumeirah, Downtown Dubai, etc. are popular holiday home destinations
Source: S. Dhar, Special to Properties
The writer is a freelancer