Subletting Regulations in Dubai for Short-Term Rental Hosts 

Looking to start an Airbnb business in Dubai by subletting your rental property? You’re DEFINITELY not alone.

With Dubai’s booming tourism sector and lucrative short-term rental market, many aspiring hosts are exploring this business model as well. 

But wait.

Just before you dive into this short term rental business model, there’s one question that’s probably keeping you up at night: Is subleasing legal in Dubai?

Is Subletting Legal In Dubai?

Yes, subletting is legal in Dubai — but only when you follow the proper channels and regulations.

The Dubai Department of Tourism and Commerce Marketing (DTCM) officially recognizes and regulates short-term rental activities, including those operated through subleasing arrangements.

In 2023, Dubai strengthened its subletting regulations to accommodate the growing short-term rental market. The Emirate now operates under a structured system that balances property owners’ rights, tenant opportunities, and guest safety.

Key regulatory bodies overseeing subletting regulations in Dubai include:

• Dubai Tourism and Commerce Marketing (DTCM) – Primary regulator
• Dubai Land Department (DLD) – Property registration oversight
• Dubai Municipality – Safety and building compliance
• Department of Economic Development
• Dubai Police – Security regulations

Essential Legal Requirements For Subleasing In Dubai

Photo by August de Richelieu

Before you start dreaming about your perfect Airbnb setup, let’s tackle the legal stufffff. Here’s what you need to know about Dubai’s subleasing regulations and laws:

1. Mandatory Permits: You’ll need a DTCM Holiday Home Permit, Trade License (if operating as a business), and NOC (No Objection Certificate) from your landlord.

2. Documentation Requirements which includes:

• Tenancy contract
• Building security clearance
• Valid Emirates ID or passport
• A DEWA bill less than three months old
• Property title deed or valid lease agreement
• Civil Defense approval for safety standards

3. The current fee structure for vacation rental permits in Dubai:

• Initial DTCM registration: AED 1,520
• Annual renewal: AED 720
• Trade license: Starting from AED 10,000 (varies based on business structure)

HOMEVY Tip: While individual operators can register directly with DTCM, it’s advisable to register as a company for better legal protection and scalability options.

How To Get a DTCM Holiday Home Permit in Dubai

Companies must complete all steps below, while individual owners can skip directly to Step 4. If you plan to sublet apartments from multiple landlords, do yourself a favor and just register as a company.

Photo by Mikhail Nilov

Here’s your step-by-step roadmap:

Step 1 – Get DED’s Initial Approval: Before anything else, companies must secure approval through Dubai’s Department of Economic Development. This involves submitting your business registration documents and getting preliminary clearance. You can reach DED at 009714 445 5555 or [email protected].

Step 2 – Register Your Trade Name: Your next step is securing your business identity. Submit your proposed trade name to DED for approval and obtain your No Objection Certificate. This ensures your chosen company name complies with UAE regulations and isn’t already taken.

Step 3 – Get Commercial Licensing: With your trade name approved, you’ll need to secure your holiday home commercial license. DED will process your application and issue the license specifically for holiday home activities in Dubai.

Step 4 – DTCM System Registration: This is where both companies and individuals start their journey. Visit DTCM’s official portal and submit your passport or UAE ID copy, property documentation, and a DEWA bill less than three months old. You’ll receive payment instructions once your application is approved.

Step 5 – Property Permit Application: After system registration, log into the DTCM portal to submit your property details. You’ll need to complete a self-classification checklist, upload required documents, and pay the permit fees. DTCM will then schedule an inspection of your property.

Step 6 – Final Inspection and Approval: DTCM will visit your property to verify compliance with all requirements. Once approved, you’ll receive an electronic permit that must be displayed prominently in your holiday home. This permit validates your legal operation in Dubai’s holiday home market.

PS:

• Individual owners are limited to managing 8 properties
• Tenants can only manage 1 property with explicit owner approval
• Apartments need “Residential” title deeds
• Villas require “Residential/Commercial” title deeds
• All permits are valid only for the agreed period between owner and operator

What Permissions Do You Need From Your Landlord Before Subletting In Dubai?

This is where many aspiring hosts hit their first roadblock. Your landlord’s permission IS a legal requirement under Dubai’s subletting laws. The landlord’s approval must be included in your subleasing agreement or contract.

Photo by Kindel Media

Required Permissions include:

• Written consent for short-term rental activities
• Specific approval for property modifications
• Agreement on maintenance responsibilities
• Clear understanding of profit-sharing (if applicable)

Sample clause for landlord agreement: “The Landlord hereby grants permission to the Tenant to operate a short-term rental business on the Property, subject to compliance with all applicable DTCM regulations and maintaining appropriate insurance coverage.“

What Areas Are Permitted for Subletting In Dubai?

Not all areas in Dubai are created equal when it comes to subleasing laws. Here’s where you can (and can’t) operate:

Approved Areas: Downtown Dubai, Dubai Marina, JBR, Palm Jumeirah, Business Bay, JLT, DIFC.

Restricted Areas:

• Staff accommodation zones
• Industrial areas
• Certain residential communities with specific regulations

HOMEVY TIP: Some master developers may have additional requirements or restrictions, even in approved areas. So be on the extra lookout for this.

Short Term Rental Regulations in Dubai For Subletting Hosts

DTCM actively monitors these requirements through regular inspections and system checks. 

1. Daily Operating Regulations: Every guest stay must last at least 24 hours, and you’re required to register all guests within 24 hours of their arrival.
2. Guest Management Regulations: Each guest must be properly registered in DTCM’s system with their passport copy on file. You’re responsible for collecting and remitting the Tourism Dirham fee, which varies based on your property’s classification (AED 10-15 per bedroom per night). All guest records must be maintained securely, respecting privacy protection measures according to UAE law.

Failure to comply with any of these regulations can result in fines or permit suspension. DTCM maintains the right to conduct unannounced inspections to ensure continuous compliance with all standards.

How To Protect Your Subletting Business In Dubai

Stay on the right side of Dubai’s subleasing laws with these protective measures:

1. Document Aggressively: Keep digital copies of all permits, licenses, and any official documents readily accessible. Dubai law requires you to preserve guest records for a minimum of five years, including their identification documents and stay details.

Also document every maintenance activity performed on your property, from routine upkeep to emergency repairs. Maintain an organized archive of all guest communications. These records can protect you in case of disputes or regulatory inspections.

2. Stay Compliant: Your permits and certificates require regular renewal – mark these dates in your calendar and start the renewal process early. Keep your safety certificates current, including fire safety and emergency equipment certifications. Maintain active insurance policies that specifically cover holiday homes in Dubai.

3. Conduct Regular System Checks: Implement a robust guest registration system that complies with DTCM requirements. Schedule regular property inspections, documenting each visit with photos and reports. This proactive approach helps you identify and address potential issues before they become regulatory violations.

Outro Thoughts On Subleasing Regulations in Dubai

Success in Dubai’s short-term rental market isn’t just about great properties and happy guests — it’s ALSO about staying compliant with laws.

Keep this blog handy, stay updated on regulations, and you’ll be well-equipped to build a thriving, legal subletting business in Dubai.

And if you need help managing your short-term rental property in Dubai — Homevy’s got you. We’ll handle all legal compliance aspects while maximizing your property’s potential. 

See you in the next blog post!