Short Term Rental Management Fees In Dubai: What You Need To Know

Managing a short-term rental in Dubai is tough.

It’s a 24/7 job that’ll have you juggling guest communications, dealing with last-minute cancellations — or racing to fix an AC that decides to quit in the middle of August. 

Sucks. :((

But here’s the good news: you don’t have to do it alone. Or even AT ALL.

Property management companies can take the wheel, but—and it’s a big BUT—you need to know what you’re signing up for. Management fees? They’re not just mere numbers. They can be for you or against you.

In this guide, we’ll tell you everything about short-term rental management fees in Dubai. By the time you’re done reading, you’ll be armed with enough knowledge to make sharp decisions.

Short Term Rental Management In Dubai: What Does It Look like?

So you’ve got a sweet little apartment in Dubai Marina, and you’re thinking, “Hey, why not make some extra cash while I’m not using it?” 

Photo by: Thirdman

There. That’s short-term rentals.

So, what’s short-term rental “management” all about? 

It’s pretty much what it sounds like—a company takes care of your property and rents it out to travellers for short stays. Think of it as your property’s personal assistant, bodyguard, and marketing team all rolled into one.

With a good property management company in Dubai — like Homevy (of course), you can sit back, relax, and watch your property work for you. It’s like having your cake and eating it too.

Property management companies carry out a ton of tasks like:

• Listing your property on OTA platforms like Airbnb and Booking.com
• Managing (and maximizing) your property’s finances
• Cleaning and maintaining your property
• Handling check-ins and check-outs
• Dealing with guest issues
• Screening guests 
• (and lots more)

Now, you might be thinking, “I could do all that myself.” And sure, you could. But let’s be real—do you have the time and mental fortitude it takes?

If not, continue reading this article.

Types of Vacation Rental Management Fees in Dubai

Alright, looks like you’re still interested in property management. Now let’s break down the different fees you might encounter when working with a vacation rental management company in Dubai. 

Photo by: Pixabay

1. Base Property Management Fee 

The base management fee is the cornerstone of your agreement with a property management company. It’s the bread and butter of management fees, typically ranging from 10% to 25% — and calculated as a percentage of your gross rental income, not profit. This means if your apartment makes AED 10,000 for a month, and the fee is 20%, you’ll be paying AED 2,000 to your management company.

Now, here’s where it gets interesting.

This fee covers a wide range of vacation rental services. We’re talking daily operations, guest communications, pricing strategy, and even marketing. It’s like paying for a full-time employee who’s an expert in hospitality, marketing, and property management all rolled into one.

2. Setup or Onboarding Fee 

Think of this as your property’s initiation fee. It covers the initial prep work—photography, listing creation, and getting your place guest-ready. Expect to pay anywhere from AED 1,000 to AED 5,000. Some companies (wink, wink, like Homevy) waive this fee to sweeten the deal for you.

3. Maintenance and Repair Fees 

These fees cover the “uh-oh” moments. A leaky faucet here, a broken AC there. Most companies charge on a case-by-case basis, while others might include a maintenance allowance in their base fee. Regardless, budget about 1-3% of your rental income for this.

4. Cleaning and Turnover Fees 

No one wants to sleep in yesterday’s sheets. Not you–not your guests either.

These fees ensure your place is spotless for EVERY guest. Costs vary based on property type and size but typically range from AED 150 to AED 500 per turnover. Oftentimes – if listing on OTA platforms like Airbnb, the cleaning costs are already paid for by the guest so it evens out.

5. Marketing and Advertising Fees 

Getting your property in front of eyeballs isn’t free. Some companies include this in their base fee, while others charge separately. If charged separately, expect to pay a flat fee anywhere from 500 to 1000 AED per month, or about 2-5% of your rental income.

6. Additional Services Fees 

Want to offer your guests VIP treatment? You totally should (it’s one of the ways we keep guests coming back for our property owners).

Additional guest services like concierge or 24/7 support might come with extra fees. These can range from AED 500 to AED 2,000 per month, depending on the level of service.

While these fees might seem like a lot, a good management company (like you-know-who Homevy) will more than make up for it by maximizing your bookings and rental rates. It’s not about finding the cheapest option—it’s about finding the best value for your money.

What Factors Affect Short Term Rental Management Fees In Dubai?

Ever wondered why Habibi’s studio in JLT costs less to manage than your 3-bedroom villa in Palm Jumeirah? We’ll tell you why.

1. Property Type and Size 

Your Airbnb property type matters.

Photo by: Max Vakhtbovycn

Bigger isn’t always better, but in this case, it usually means bigger fees. A studio needs less TLC than a massive penthouse. If you’ve got a larger place, ask if the company has tiered pricing. At Homevy, we believe in economies of scale (our CFO made us say that) — the more space you’ve got, the better deal we’ll swing your way.

2. Location 

Your property’s address isn’t just a status symbol—it’s a major player in fee calculations. 

Managing a place in Downtown Dubai is a different ball game compared to the one in Deira. This is due to higher property values, guest expectations, and operational costs in these areas.  Top spots command higher fees but also higher rental rates. On the flip side, less central locations may have lower fees but potentially lower rental income as well. 

It’s all about that ROI.

3. Seasonality and Demand 

Dubai’s a year-round destination, but let’s be real—July isn’t exactly peak season. Demand fluctuations can impact your management fees. High season (October to April) may see increased management fees due to higher workload. Especially if you didn’t sign a fixed % rate.

Low season (May to September) might have lower fees but also lower occupancy rates. However, some companies maintain a flat fee year-round, while others adjust seasonally.

Homevy Insider Tip: We use the best pricing algorithms to maximize earnings for our property owners so they keep on making dough — EVEN during slower months.

4. Level of Service 

Photo by: Pavel Danilyuk

Want the bare basics or the whole shebang? Hmmn, we already know the answer.

The more services you need, the more you’ll typically pay. Basic packages like listing, booking, cleaning are less expensive than comprehensive services like 24/7 concierge, regular maintenance checks, or professional photography.

It’s best to go with a company that offers a tiered service level to match different needs and budgets.

What Is The Average Property Management Fee in Dubai?

Photo by: Anna Shvets

There are two major fee ranges (and types) you can expect in Dubai’s short term rental management market:

1. Percentage-Based Fees

• Budget Properties: 10-17% of gross rental income
• Mid-Range Properties: 17-20% of gross rental income
• Luxury Properties: 20-25% of gross rental income

2. Common Flat-Rate Fees

• Setup Fee: AED 1,000 – AED 3,000 (one-time)
• Professional Photography: AED 500 – AED 1,500
• Deep Cleaning: AED 300 – AED 1,000 (depending on property size)
• Maintenance Call-Out: AED 100 – AED 250 (excluding repair costs)

Disclaimer: The vacation rental market in Dubai is super competitive. Cutthroat actually. Fees can fluctuate based on market conditions, property performance, and company policies. The ranges provided are based on current market averages but may vary. Always request a detailed breakdown of fees from your chosen management company and don’t hesitate to negotiate or ask for clarification.

Are There Hidden Costs Associated With Short Term Rental Management in Dubai?

Yes. There are. Now in more sentences;

1. Vacancy Periods

Empty apartments don’t make money. During low seasons or between bookings, your property might sit vacant. While you’re not paying for guest-related services, you’re still responsible for ongoing costs like mortgage, utilities, and maintenance.

How to minimize rental vacancy costs in Dubai:

• Work with Homevy (100% recommend)
• Implement dynamic pricing strategies
• Consider offering longer-term stays during slow periods
• Use vacancy periods for property upgrades or deep cleaning

2. Property Maintenance and Upgrades

Photo by: Ksenia Chernaya

Wear and tear is inevitable, especially with frequent guest turnover in short term rentals. Beyond regular cleaning, you might face unexpected repair costs or the need for periodic upgrades to stay competitive.

Common unexpected costs in Holiday Homes rentals:

• Plumbing or electrical issues
• Appliance repairs or replacements
• Furniture damage beyond normal wear

We recommend setting aside 1-3% of your annual rental income for maintenance and upgrades.

3. Utility Costs

Air conditioning isn’t a luxury in Dubai—it’s a necessity. Utility bills can fluctuate significantly based on guest usage, especially during summer months.

How to manage utility costs in Dubai Airbnbs:

• Install smart thermostats to regulate energy use
• Include a utility cap in your rental agreement
• Consider energy-efficient appliances and LED lighting

4. Taxes and Licensing Fees

The Holiday Homes rental market in Dubai is regulated, which means there are associated costs to operate legally. This includes the Dubai Tourism fee, Annual Rental License fee, and VAT.

By anticipating these costs, you can set realistic profit expectations and avoid unpleasant surprises. Do note that successful vacation rental management isn’t just about maximizing bookings—it’s about optimizing your overall return on investment.

FAQs on Short Term Rental Management Fees

1. How Can I Negotiate Vacation Rental Management Fees?

Negotiation is possible and often expected in Dubai’s property management market. Here’s how to approach it:

• Step 1: Do your homework. Research average fees for properties similar to yours. 
• Step 2: Identify your priorities. What services are non-negotiable for you? 
• Step 3: Prepare your case. Why should the company offer you a better rate? 
• Step 4: Set a realistic target. Aim for a fair deal, not just the lowest price.

To get the best property management deal, offer a longer contract in exchange for lower fees. Also ask about volume discounts if you have multiple properties.

2. Should I Use A Cheap Property Management Company?

It depends. The key is finding the sweet spot between cost and service quality. A cheaper service might save you money upfront but cost you in lower bookings or maintenance issues. Professional management can potentially increase your rental income by 20-30% through optimized pricing and marketing, which results in higher occupancy rates.

Professional management becomes cost-effective when:

• Your time is valuable
• You’re not locally based
• You have multiple properties

3. What Red Flags Should I  Watch Out For In Property Management Fees?

• Be wary of unusually low fees; if it seems too good to be true, it probably is. 
• A company’s reluctance to provide a detailed fee breakdown should raise concerns. 
• Look out for a lack of local Dubai market knowledge, as this is crucial for successful management. 
• Poor communication or responsiveness during your inquiry process can be indicative of future service issues. 
• Lastly, ensure they have a clear policy on handling guest issues or emergencies.

At Homevy, we welcome these questions. We believe an informed property owner makes for a great long-term partner. Our transparent approach means we’re always ready to discuss our fee structure, services, and track record in detail.

Take your time, ask tough questions, and trust your instincts. The right company will see your property’s potential as clearly as you do — and have a solid plan to maximize it.

Xoxo, Gossip Homevy girl 🙂