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What Does It Take to Create a Successful Airbnb in Dubai?

Updated: Nov 30, 2023

There is sufficient demand for short- and long-term rentals in Dubai and in the UAE, making it one of the most lucrative locations for Airbnb. It receives millions of tourists and businesspeople annually, with popular areas like those close to the Burj Khalifa particularly attractive. That said, the Dubai government is working to make other areas as attractive, meaning that starting an Airbnb is a good idea. But how do you start one, and how do you make it successful and profitable in the UAE?

Making it a prime location for successful Airbnb rentals in the UAE
Discover the thriving market for short- and long-term rentals in Dubai! 🏙️ With millions of tourists and businesspeople visiting each year, Airbnb is a lucrative option for property owners in the UAE.

Understand the Rules and Regulations

Dubai’s home and property market is regulated by the government, which requires all property owners and investors wishing to rent their properties to register with the Dubai Department of Tourism and Commerce Marketing (DTCM). The DTCM ensures that all listed properties meet set standards and that their owners have the required permits to list them.

This requirement is advantageous for short- and long-term rentals where guests who know the properties they will stay in meet these requirements. They also know that their owners meet strict local legislation, so they are more likely to follow Airbnb rules Dubai.

For property owners, obtaining a licence involves registering for a “Homeowner” account on the DTCM Holiday Homes Website. They are required to provide various documents and then go through the approval process. There are two things to note here. First, a person can list their property even if they are not the landlord as long as they have registered and obtained permission from the landlord or property owners.

Second, you can only lease more than eight units if you do so as an agency or under an agency. If you own eight units or more, it's best to engage the services of an Airbnb management company to handle everything for you.

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Prepare Your Property for Airbnb

Your property is critical for Airbnb success as a holiday home. If you already own a property in the UAE, you can carry out the necessary repairs and upgrades to make it more appealing. Investors can purchase properties in ideal locations to ensure the best returns for their investments.

When preparing the property to rent on Airbnb, considering a fair price is vital. Guests weigh up the cost per night heavily when choosing where to stay, and you should find a balance between value and revenue. Setting the price too high might mean the guests expect a lot, or you risking your revenue, while setting a price too low could lead to low revenue.

Providing competitive rates can attract more guests and lead to a successful rental experience in the UAE
Stand out on Airbnb with value-driven pricing in the UAE!

Represent Your Listing the Best Way Possible

Once you have an Airbnb account, it is time to start attracting guests. The best way to do so is by preparing the photographs you use on the platform and on other marketing platforms. Good photographs help sell your property and are the key to a high Airbnb Dubai occupancy rate.

It is important to ensure that the photographs are a fair and accurate representation of a unit or property. Doing so ensures guests are not disappointed if the property or unit does not match their expectations set by the photographs they have seen.

A Great First Impression

First impressions matter, especially in locations where people expect luxury, such as Dubai. Start by imagining yourself as the guest and consider the interaction you expect from a host. This is the same level of interaction you should provide your guests.

Second, provide your guests with amenities, and let them know that you do so in your listing. Listing the basics, like toiletries, blankets, towels, and clean sheets, can go a long way in convincing a guest to book. Just be sure to consider your guests’ social and religious needs when putting everything together.

Providing a considerate and inclusive environment will make your listing more appealing and create a positive impression
Embrace diversity in Dubai and cater to your guests' social and religious needs.

Fast Response Times

Short- and long-term rentals work differently from hotels because hosts typically interact with guests multiple times before their stay. Responding promptly is crucial for the success of an Airbnb. If you cannot set aside enough time to handle guest communications, consider managing the property remotely or leveraging UpperKey Dubai Airbnb concierge services in the UAE so the property management company can handle everything for you.

Make sure to respond quickly and efficiently to guest inquiries and requests
Being a successful Airbnb host in Dubai requires prompt and attentive guest communication.

Frequently Asked Questions About Airbnb in Dubai

How Much Can You Make on Airbnb In Dubai?

Dubai is one of the best and profitable locations in the world for Airbnb hosts. However, the sum you can make depends on several factors, the most important being proximity to the Burj Khalifa. Landlords and hosts who host guests at ideal locations earn an average of £930 ($1,150), translating to about £339,000 per year for a full year of hosting.

This price goes as low as £180 per night in other locations. However, the good news is that the Dubai Airbnb market is growing rapidly, with areas like Dubai Marina, Downtown Dubai, Palm Jumeirah, and Jumeirah Village seeing a lot of growth in recent years. The Dubai Airbnb market is also very seasonal, which means the cost usually goes up in the winter months of November to April.

To increase Airbnb revenue, property owners and investors partner with companies that provide an Airbnb concierge service Dubai like UpperKey. They manage whole properties or become primary tenants, guaranteeing the owners and landlords a high return.

Partner with UpperKey for expert management, high returns, and stress-free hosting
Maximize your Dubai Airbnb revenue with a trusted Airbnb concierge service!

How Much Does Airbnb Charge Hosts in Dubai?

Airbnb charges hosts a flat 3% fee on the booking subtotal. This subtotal comprises the nightly rate plus the cleaning fee. This fee is paid per reservation, with Airbnb saying it goes towards keeping their business and platform running.

How Much Should I Pay Someone to Manage My Airbnb?

Numerous of the factors determine your payment to someone to manage your Airbnb. One of these is pricing mode. The most common pricing models are guaranteed, fixed-rate and commission-based models.

The guaranteed model ensures an income regardless of the occupancy rate, seasonality or other factors. Properties management companies in Dubai like UpperKey will check out your property and then negotiate with you on how much they will pay you and how much they will charge you for managing your property.

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In a fixed rate arrangement, the company charges a flat rate for property management. It may also charge additional fees for add-ons like marketing and maintenance. This is very different from the guaranteed income arrangement, where the property management company takes care of everything.

The commission-based plan is the easiest to understand. The company will charge you between 25 to 50% of all rent collected. The fee will vary depending on the property’s location and the services you want from the company. It is important to go through the property management agreement Dubai carefully and negotiate everything in it including the fee to ensure you get as many services as possible for what you pay.

Apart from location and the property management company’s services, other factors that affect how much property owners pay include the property’s condition, type, and size.

Choose the right plan for your property needs and location
Learn about the different pricing models: fixed rate, commission-based, and guaranteed income arrangements.

Is An Airbnb in Dubai a Good Investment?

Dubai remains one of the best locations on Airbnb around the world. The main reasons for this are:

  • The massive number of people who visit Dubai every year, especially in the winter.

  • Its appeal to both tourists and businesspeople.

  • The flexibility and luxury people expect that opens up numerous opportunities for property owners.

Dubai's thriving Airbnb market offers numerous locations and strong rental demand
Partner with a reliable property management company like UpperKey for hassle-free success.

On the lower end, property owners who charge £180 per night for 300 days per year can expect to earn more than £50,000 from a single unit. Such a return means that investors who are looking to recoup their investment quickly and then start making a profit will find Dubai very attractive.

Dubai is a prime location for an Airbnb business, with numerous locations, demand for rentals and a high return on investment. However, property owners and investors who want to create a successful Airbnb in Dubai should remember the principles discussed above. You can also talk to an Airbnb management company Dubai like UpperKey who will handle everything for you.


Determine your property's rental value with UpperKey as your tenant

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