How to guide: Turn your property into a holiday home!
Tuesday 25 April 2023Wed 16 Feb
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Interested in turning your investment home into a holiday home but don’t know where to start?
Well fear not, we’ve got you covered!
We know how important it is to maximise your investment and so are here to make sure you get the most out of it.
First of all, why work with us?
We have a team of experienced professionals to guide you through the short-term lettings process for holiday homes. You'll receive regular updates on your property, the revenue generated, reviews left by guests, and more. Our short-term lettings consultants will also give you advice on how to improve the guest experience and ensure that your property is working at its best.
What are the benefits?
You'll get greater revenue returns up to 30% more per annum, compared with traditional renting. when turning an investment property into a holiday home. Another great benefit is the flexibility you’ll have if you decide to sell your property in the future, as you’ll not be tied to a 12 month contract - this also looks better for viewings! Plus, your property will be fully managed and well maintained by our team so you don’t have to worry.
Wondering how the process works?
It all starts with a free consultation with one of our business development experts. They'll advise you on the potential earning of your property when transforming it into a holiday home, the onboarding process, and what to expect from there onwards. Our team is also available around the clock for any queries you may have regarding property management, marketing and handling the finances of your holiday home.
No furnishings? No problem!
We also offer a furnishing service where we can also install smart lock solutions offering maximum security.
From here our dedicated marketing team will take professional photos and videos that are boosted across our social media platforms and sent out to our extensive databases - maximising the visibility of your newly listed holiday home!
How do I know if my property is eligible for short-term lease?
As long as it's not a hotel apartment, all unit types are eligible for short-term leasing according to the Dubai Department of Tourism and Commerce Marketing (DTCM). Villa owners are also eligible to rent their properties as long as they are in a gated community consisting of at least four villas. The cost of obtaining a holiday home permit from DTCM is AED 1,520 a year on average.
What costs can I expect?
Under an Allsopp & Allsopp contract, property management is included but a fee of 20% to 25% is charged on the total of the short lease price. We'll fully manage your holiday home, including maintenance, cleaning, and general handyman tasks but utility bills are not included in the holiday home contract. That’s not all, we'll also take care of guest screening, inventory, and property inspections. The only extra is the DTCM charges a tourism Dirham tax for each rental which is paid by the guest.
How is tourism Dirham tax calculated for holiday homes rentals in Dubai?
It's calculated based on the number of rooms and nights, so the fee is charged per night and per room.
The classification of the holiday home is also considered, either standard or deluxe, and it's demonstrated while registering for the permit on the DTCM website. You should pay the total tourism Dirham fee of each month to the DTCM by the 15th of the upcoming month. The tourism Dirham fees per night and per room are AED 10 for standard and AED 15 for deluxe for holiday homes.