Sublet and Earn with Airbnb Dubai

In this article, I’m going to show you exactly how Ahmed, a 34-year-old entrepreneur from the UK, is making AED 600,000 in yearly profit running a subletting business through Airbnb in Dubai. No property ownership. No massive investment upfront.

Just smart strategy, legal setup, and the right kind of hustle.

Ahmed started with one rental apartment. Today, he manages 15 fully-furnished holiday homes across key areas like Dubai Marina, Downtown and Business Bay - and his monthly profits continue to grow.

Want to know how he does it? Read this step-by-step breakdown of his business strategy - and learn how you can replicate it too.

First, What Is Subletting for Airbnb?

Before we dive into Ahmed’s numbers, let’s clear this up. Subletting for Airbnb means renting a property as a tenant, with permission from the landlord, and then listing it on Airbnb or similar platforms for short-term rental income.

In Dubai, Subleasing is 100% legal if:

a. You get the landlord’s written approval
b. You obtain a Holiday Home permit from Department of Tourism and Commerce Marketing(DTCM)
c. You follow the local tourism and tax regulations

This model is perfect for entrepreneurs who want to start lean - without buying property, but still tap into Dubai’s booming holiday rental market.

Meet Ahmed – From Side Hustle to Full-Time Subleasing Business

Ahmed moved to Dubai from the UK in 2023. He loved the city, saw the tourism numbers rising, and had a simple idea:

“What if I rented an apartment, furnished it well, and listed it on Airbnb?”

He started with one unit in Dubai Marina, then two, then five. Today, he manages 15 apartments across different areas - and his business is thriving.

Let’s break down the numbers so you can see what this really looks like.

Ahmed’s Profit Breakdown (Yes, It’s Real)

Let’s say each of Ahmed’s 15 apartments follows this structure: Please make a note that below number are from 2024. For current 2025 data and total number of units Ahmed is currently handling, please stay tuned, we will update this article in near future.

So, here is the breakdown of Ahmed's earning and expenses -

- Monthly rent to landlord: AED 13,000 (average of 15 properties)

- Daily Airbnb rate charged: AED 800

- Occupancy rate: 80% (which is 24 days/month)

Monthly revenue per unit: 24 days × 800 = AED 19200
Monthly profit per unit (after rent): 19200 – 13,000 = AED 6200

Operating expenses (cleaning, maintenance, platform fees): AED 2880 (15% of the monthly revenue)

Net profit per unit per month: 6200 – 2880 = AED 3400

Now multiply that:

15 units × AED 3400 = AED 51000/month

AED 51000/month × 12 months = AED 600k/year approx.

Now that’s a business.

How Does He Keep It Running Smoothly?

Running a subletting business isn’t just about putting a listing online. Ahmed built systems. Here's what makes his model work:

Legal Setup from Day One

Ahmed got every property approved by the DET with landlord consent and a valid Holiday Home permit. This allowed him to operate legally and scale without issues.

Smart Location Choices

He didn’t just go for flashy towers - he studied market demand. Areas like Business Bay, Dubai Marina, and Downtown offered high ROI, consistent occupancy, and tourist appeal.

Dynamic Pricing Strategy

Ahmed adjusts his rates based on demand, season, and competitor activity. During peak events and holidays, his daily rate goes up to AED 800–900.

Reliable Cleaning & Operations

He partnered with local cleaning and maintenance vendors to keep costs down but standards high. This is key to good reviews and repeat bookings.

Top-Notch Guest Experience

Welcome notes, fast replies, small touches like a bottle of water or city guide—Ahmed treats every guest like a VIP. That’s why his units average 4.9 stars across platforms.

What About Fees and Taxes?

This part is important and Ahmed handles it like a pro: Below are the fees and taxes you need to pay when running an airbnb subleasing business in Dubai:-

a. Turism Dirham Fee – AED 15 per night, per booking
b. VAT – 5% if annual revenue exceeds AED 375,000
c Service Charges – approx. 10% of total rental (cleaning, maintenance, etc.)

Corporate Tax - Corporate tax in Dubai is only applied when your business makes real profit. If your annual profit is below AED 375,000 - you pay nothing.

But once you cross that limit, you’ll need to pay 9% corporate tax on the profit above AED 375,000. This applies to all types of businesses, whether you're running an ecommerce store, a car rental company, or a consultancy.

Ahmed includes most of these in his nightly rate and keeps everything clean in his records. That’s how he stays compliant and profitable. Read full article about fees and taxes here.

Can You Do Subleasing for AIrBnB Too?

Absolutely. The model is simple. But success depends on doing it the right way.

a. Start with 1 or 2 properties
b. Get landlord approval and the proper license
c. Choose locations with steady demand
d. Deliver great service from day one
e. Partner with consultants who know the rules. That’s exactly where we come in.

Do You Need a Mainland License to Start Subletting on Airbnb?

If you're starting with just one unit, you do not need a vacation home rental license from Dubai Mainland. You can sublet a property legally for short-term stays as long as you have two things: a valid tenancy contract or Ejari, and an NOC letter from the landlord confirming they allow subleasing.

But once you manage multiple properties, it’s considered a full business activity. In that case, you’ll need to apply for a Mainland vacation home rental license and operate as a licensed entity.

Also, make a note of this - no matter how many properties you manage, you must get approval from DTCM (Dubai’s Department of Tourism and Commerce Marketing). They regulate all holiday home activity and issue the necessary unit permits. So even if you're starting small, DTCM compliance is a must.

How COFTT Can Help You Start Smart

At COFTT, we’re more than just business setup consultant in Dubai - we’re your launch partner.

We help entrepreneurs like you: Legally register your subletting or holiday home business, handle DTCM approvals and permits, do market research to choose the right areas and pricing and guide you on taxes, contracts, and day-to-day operations.

Whether you're starting with one unit or ready to manage a full portfolio, we simplify the setup so you can focus on growth.

Final Thought – Start Small, Think Big, Stay Legal

Ahmed didn’t get lucky. He got smart. He followed the rules, built a lean business, and scaled it with a clear strategy. Now, his subletting business earns him a full-time income, without owning a single apartment.

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If you’re ready to start your own Airbnb subletting business in Dubai, you don’t need to figure it out alone. Talk to us at COFTT. We’ll help you launch legally, grow steadily, and build a profitable business the smart way.