Subletting for Airbnb - A Profitable Business in Dubai

We've been following Ahmed's journey as he builds his airbnb business in Dubai. After successfully handling things like the Tourism Dirham Fee, Municipality Fee, and VAT registrations for holiday homes, Ahmed has now turned his sights to a new area: "subletting for Airbnb business." This means that he's renting beautiful apartments in the best parts of Dubai and then renting them out again to travelers. This is a really profitable business for Ahmed. He's already managing six different properties! In this article, we're going to explain how Ahmed manages his Airbnb subletting business, and how you can start your own in Dubai.

Understanding Subletting

Subletting occurs when a tenant leases their rental property to another individual with the consent of the landlord. It's important to note that subletting without the landlord's approval is not permissible in Dubai.

Steps to a Profitable Subletting Airbnb Business in Dubai

• Register Your Vacation Rental Business: First, register your vacation rental business in Dubai. Obtain the necessary trade license and ensure compliance with all local regulations.
• Choose an Ideal Location: Lease apartments in high-demand areas such as Dubai Downtown, Dubai Marina, Palm Jumeirah, among others.
• Obtain a NOC for Subletting: Ensure your lease agreement includes a No Objection Certificate (NOC) from the landlord, permitting subletting.
• Furnish Your Property: Invest in high-quality interior design and furniture to attract guests and offer a premium experience.
• Get DTCM Permit: Secure the necessary DTCM permit for holiday homes.
• List Your Property: List your property on holiday home rental platforms like Airbnb.
• Start Taking Bookings: With everything set, start taking bookings and watch your investment pay off.

Profit in Subletting for Airbnb Business

Let's say you rent a 2-bedroom apartment in Dubai Marina for AED 140,000 yearly. If you offer it as a short-term rental for AED 800 per day, your monthly earnings would be approximately AED 24,000. After subtracting your monthly rent (AED 11,666), you're left with a handsome profit. The demand for studio and one-bedroom apartments is even higher, which means more profits if you can secure such properties.

Promote Your Business

Create your own website and market your listings to reach a larger audience and maximize your profits.

Common FAQs

What is Subletting or Subleasing? 

Subleasing is the act of renting a property from a tenant rather than directly from the landlord.

Is Subletting allowed in Dubai? 

Yes, but only with the permission of the landlord.

What is the Penalty for Unauthorized Subletting in Dubai? 

Penalties for unauthorized subletting can range from AED 5,000 to AED 50,000 or more.

Can I Rent 2 Apartments in Dubai? 

Yes, there are no legal restrictions on the number of apartments you can rent.

Is Subletting Legal in Sharjah? 

Yes, subletting is legal in Sharjah, but only with the landlord's permission.

Can You Sublet Airbnb in Dubai? 

Yes, even tenants can sublet homes for short-term rental, but they must register the property through Dubai Tourism's Holiday Homes provision and obtain an NOC from the property owner.

In closing, we see that Ahmed's journey into subletting his leased properties for short-term rentals has proved to be an extremely profitable venture. Given Dubai's position as a global tourism hotspot, this business model can be highly rewarding. Just like Ahmed, you too can leverage this opportunity and make a fortune from the thriving holiday home market in Dubai.