Starting AirBnB Business in Dubai - License Cost & Approvals

Have you ever thought about turning your Dubai property into a steady stream of income?

With short-term rentals booming and platforms like Airbnb leading the way, Dubai has become a hotspot for holiday homes. In fact, the city already has over 25,000 registered holiday homes and averages an 80% occupancy rate. That’s not just hype - it’s real opportunity.

At COFTT, we’ve helped countless property owners do this successfully. Today, let’s walk you through the journey of Mr. Ahmed, one of our clients who turned his apartment in Dubai Marina into a fully legal, highly profitable Airbnb business.

What Is an Airbnb Business in Dubai?

Let’s start with the basics. Running an Airbnb business in Dubai means offering a furnished property - apartment, villa, or townhouse - for short-term stays to tourists, business travelers, and visitors.

Guests prefer the comfort, privacy, and space of these homes compared to traditional hotels. And the good news? It’s 100% legal, as long as you follow the regulations.

And here’s what makes it exciting - it’s not just legal, it’s seriously profitable when done right.

Is Airbnb Business in Dubai Really Profitable?

Let’s break it down using Mr. Ahmed’s case. You can read his full story here

He owns a two-bedroom apartment in Dubai Marina that comfortably hosts four guests. His nightly rate is AED 800, and with an average 85% occupancy rate, his monthly revenue hits around AED 18,000.

After deducting AED 3,500 for cleaning, maintenance, and utilities, he still clears a monthly profit of AED 14,350. That’s over AED 170,000 per year - from just one property.

Now imagine scaling to three, five, or even ten properties. This is why so many are diving into Airbnb in Dubai right now.

Step One: Understand the Market Before You Start

Our journey with Mr. Ahmed began with market research. We helped him evaluate Dubai Marina’s short-term rental market - looking at seasonal trends, competing listings, pricing, tourist volume, and more.

The data showed clear demand, high nightly rates, and excellent review activity in that area. In short, it was the right market - and that made all the difference.

We always tell our clients: guesswork is risky. Research is powerful.

Step Two: Get Legally Licensed and Approved

Getting proper trade license is important to run any business in Dubai. For Airbnb business, you also need license and approvals but here are two cases -

Start Airbnb Business with One Unit as an Individual

You can legally start an Airbnb business in Dubai with just one unit - and the good news is, you don’t need a full vacation home rental license for it. As an individual, this setup is perfect if you want to test the waters without big investment. All you need is a valid tenancy contract or Ejari and a No Objection Certificate (NOC) from the landlord allowing subleasing.

This model works really well for beginners. Many expats in Dubai start with a single apartment, get the necessary approvals, and list it on Airbnb. Once bookings grow and you’re ready to manage multiple properties, switching to a licensed vacation rental business becomes the next smart move.

What If You Have More Than One Airbnb Unit?

In Dubai, you can manage up to 3 Airbnb units without a vacation home rental license - but there’s a catch. You can only manage one unit yourself. The other two must be handled by a licensed property management company approved by DTCM.

If you want to manage more than 3 units, you’ll need to set up a mainland company and apply for a Vacation Home Rental License. This gives you full control to operate legally as a business.

DED Trade License

Mr. Ahmed first applied for a Dubai Department of Economy and Tourism (DET) license because he knew that he is going to scale his AirBnB business in the future. This allows him to operate as a short-term rental host legally

DTCM Certification

Then, we helped him get certified by the Dubai Tourism and Commerce Marketing (DTCM) authority. This registration officially lists your property as a licensed holiday home.

These are both non-negotiable. Without them, you risk serious fines and can even get banned from rental platforms.

Want a full guide? Check out our detailed article on how to get DTCM Permit for Holiday Homes

Step Three: Understand the Fees and Taxes

Here’s what many new hosts miss: Dubai has specific short-term rental fees, and you need to price your listing accordingly.

Before you decide on your pricing strategy, it’s important to understand the various fees and taxes that apply to holiday homes in Dubai. These charges - like the, tourism dirhamfee, and VAT - can impact your margins if not planned for correctly.

To help you stay ahead, we’ve broken everything down clearly in our dedicated article on understanding tourism fees and taxes in Dubai’s holiday home business, so you know exactly what to expect and how to price your Airbnb listing the smart way.

You’ll be required to account for:

Tourism Dirham Fee

A fixed AED 15 per night goes directly to Dubai’s tourism promotion.

Service Charges and VAT

Depending on the services you offer (cleaning, concierge, etc.), you might charge 10% in service fees.

Plus, there’s 5% VAT on the total amount collected.

We helped Mr. Ahmed set the right pricing to stay competitive while remaining profitable after all these fees.

Step Four: Create a High-Performing Listing

Once the legal work was done, we moved on to the creative part - setting up the perfect Airbnb listing.

We arranged a professional photo shoot, wrote a clean and compelling description, and crafted headlines that focused on lifestyle, convenience, and guest experience.

But here’s the key detail - you can't publish your listing without the trade license and DTCM approval. Airbnb and similar platforms require legal registration proof in Dubai.

Step Five: Adopt the Right Hosting Habits

Mr. Ahmed didn’t just stop after listing his property - he followed best practices that we’ve seen top hosts use across Dubai.

License cost

The cost to get a Vacation Home Rental License in Dubai usually starts from around AED 15,000, but that’s just the base. Other charges come into play too - like trade name approval, initial approval, and the number of visas you want under the license. Your total cost will depend on your setup and business plan.

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At COFTT, we guide you step by step and provide the exact pricing based on your needs. Want a clear breakdown? Get in touch with us today and let’s get you started the right way.

Maintain high standards

He kept his apartment spotless and ready for guests at any time.

Respond fast

Speedy replies to booking inquiries and guest questions boosted his rating.

Adjust pricing smartly

He optimized nightly rates during peak seasons like Expo months and holidays.

Add extra touches

We encouraged him to provide fast Wi-Fi, a welcome kit, and a printed local guide - small efforts that led to glowing reviews.

Mr. Ahmed’s Airbnb Business Is Now Fully Booked

Today, Mr. Ahmed’s calendar is packed. His apartment stays booked year-round, and he’s now exploring expanding into a second property.

What made the difference? He followed a clear roadmap, stayed compliant, and focused on guest experience.

And he didn’t do it alone. He partnered with COFTT, and we handled the heavy lifting - so he could focus on income, not paperwork.

Let COFTT Launch Your Airbnb Business in Dubai - The Smart Way

We’ve helped dozens of property owners in Dubai turn their homes into income-generating Airbnb businesses - and we can do the same for you.

From:

a. Legal setup

b. Licensing and DTCM approvals

c. Profitability planning

d. To listing strategy and ongoing support

We take care of it all - so you don’t have to figure it out alone.

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Are you ready to turn your Dubai property into a smart income stream? Talk to COFTT today and let’s build your Airbnb business - legally, professionally, and profitably.