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  • April 7, 2025

How to Turn Your Apartment into a Profitable Short-Term Rental?

If you have a property in Dubai and you’re feeling a bit lost about what to do with it, there’s one important question you should ask yourself: How can you turn your apartment into a profitable short-term rental? That’s where we come in—to help you convert your apartment into a profitable business and show you what you can do to attract potential renters. 

To help you get started, here are some important tips and benefits you need to consider when renting your apartment as a short-term rental in Dubai.

The Growing Demand for Short-Term Rentals 

Dubai is a land of short-term rentals and holiday homes. Of course, considering the more happy visitors, the more the demand for short-term stays. And the best part is that it’s a place for investors to shine a light on their profit-maximizing journey.

How to Turn Your Apartment into a Profitable Short-Term Rental

For real estate investors, these returns are usually promising because defining short-term rental strategies to attract renters or foreigners coming to Dubai to visit isn’t too hard. So it’s really not surprising how popular the city has become, especially considering how, in 2025, Dubai had between 30,000 and 45,000 short-term rentals listed online.

But remember, you can’t just rent out any apartment for short-term rental just like that because people are looking for high-end amenities, luxurious living, and lifestyle-oriented assets for enhanced living. For example, something like a premium spa or a gaming room facility is a bonus.

Therefore, for a successful short-term rental or holiday home strategy, it is essential to gain a clear understanding of who is interested in utilising our space and what we can do to improve the state of our apartment space.

Understanding Your Market: Who Will Stay in Your Space? 

A profitable short-term rental is one that understands its audience. Think from the point of view of people who are coming back from long flights, business associates coming for temporary attendance, digital nomads or remote workers, and families coming to visit Dubai for vacation. Therefore, it is important to set up your apartment or space according to what is truly needed and desired by people during their visit to Dubai.

For instance, Keyless entry is increasingly popular in holiday homes and short-term rentals, as many guests prefer an automated system for check-in and check-out.

Additionally, members of Gen Z are showing a growing preference for rooms that resemble resort-style amenities, which are also Instagram-friendly.

Let’s Make Your Room Guest-Ready

Make Your Room Guest-Ready for holiday home

Now that you have an overview of the major benefits, let’s carefully break down crucial information on how to convert your apartment into short-term rentals to help you get started right away:

1. You need a licence

It’s the Department of Economy and Tourism (DET) (formerly DTCM) that is responsible for issuing licenses and permits for holiday homes and short-term rentals. This license is your official certification for renting out your property for business purposes. Also, you can’t rent just any part of your apartment or space; it’s entirely for the guests for temporary accommodation. You may apply for the license through the DET website, and processing times may vary.  This means you should display the license number of your property for it to be listed online. 

But keep in mind that your property must be cleaned and well-maintained for short-term rental usage in compliance with health and safety standards set by DET. You must also rightfully give guests their essential amenities: furniture, appliances, linens, towels, toiletries, etc.

(Note: Each guest’s details must be registered with DET within 24 hours of their arrival.)

2. Make your guests feel at home

It’s not a hotel; it’s a short-term rental, and people should feel welcome in a new space in a new location. A good apartment is fully accessible and functional and has fewer hassles or maintenance concerns. So get the good reviews coming by doing the necessary:

  • Declutter deeply: Not just basic cleaning—remove any stains, bacteria, and odors which can exist in the room. To be on the safe side, opt for professional cleaning services.
  • Functional amenities: A cupboard with less space? A lamp that barely lights up the room? You may not realize this, but as a host, you must take care of the quality of the modern amenities you are providing. Take care of any issues like slow Wi-Fi, spacing, bathroom water leaks, and drains, as these are common concerns addressed by people.
  • Decorate like a PRO: Keep your room super clean and friendly. From a beautifully designed welcome mat to walls decorated in eye-pleasing colors, it is all about giving your guests a good feeling. Also, understand how the location of your short-term rental resonates with your decoration or design concept (e.g., you can add beachy colors and decor for rooms in Jumeirah).
  • Have the necessary things in stock: Keep kettles, sugar sachets, extra towels, bed pillows, and blankets ready. Never put yourself in a situation where a guest has to inquire specifically about a particular asset. Giving snacks, guides, and personalized notes is a bonus and can put a smile on the guest’s face.
  • Security measures: Locks and keys for doors and windows, smoke detectors, and first aid kits should be placed and set up in the right way because a guest should feel safe no matter what.

3. Set your prices right

It’s not entirely up to your preference to set the price because there’s something called competitive price, the fine line between profit and what’s the relevant price set in the market. Use popular booking platforms to see their set prices, compare, and outline the factors of your apartment’s price according to market standards. (For example, for summer holidays, you may set seasonal charges.)

If you have a knack for understanding what really sells, you will know how to set prices, give discounts without losing out, and create a good timeframe for check-in and check-out.

4. Market and manage effectively

Ensure that your rental is worth the price guests are willing to pay. When renting out a spare room, highlight the unique selling points that make your short-term rental appealing (e.g., a 3-bedroom apartment conveniently situated near the Burj Khalifa and just 500 meters from the metro station). Additionally, upload high-quality photos of your property taken in good lighting. Avoid using misleading images, as this could be considered a fraudulent listing.

5. Take care of your online reputation: Your guests are testimonials of a good experience in a short-term rental. Therefore, you should do everything to streamline communication for both potential customers and the existing fan base. So, respond to inquiries within a 24/7 timeframe, make booking convenient, accept or decline booking requests promptly, and manage visit timings according to maintenance timings.

Also, add readable and fair terms and conditions for guests, and ask your existing customers to leave reviews a few days after they leave your stay.

|| Also Read: Top 10 Tips for Booking the Best Short-Term Apartments in Dubai ||

Choosing the right property management Company

Choosing the right property management Company

Let the experts take care of it! Property management companies in Dubai can save you time and effort, as well as help you navigate the lengthy licensing process involved in renting out your apartment for short-term rentals. If you have questions like “How do I start a holiday home?” or “How can I make money with vacation rentals?”, the answers and solutions are in the hands of property management professionals.

If you’re looking for top property management advisors in Dubai, AZCO is the company for you. We guarantee a profitable short-term rental experience without the hassle of searching for properties, making inquiries, setting up facilities, or managing check-in times. We simplify the process for hosts by taking care of everything for you.

Final Thoughts

After reading this blog, you should have a clear understanding of how to make your apartment “short-term rental ready.”

To summarize, make it guest-friendly, provide the best fully furnished amenities, conduct thorough research, set competitive prices, and ensure a positive experience for your guests.

Frequently Asked Questions

1. Is a short-term rental profitable in Dubai?

Yes. Short-term rentals are currently one of the most profitable businesses, with the tourism and hospitality sector booming and apartment stay demand rising in Dubai.

2. How much is a holiday home permit in Dubai?

The cost of a holiday home license in Dubai can range between AED 10,000 and AED 12,000 (inclusive of a Knowledge fee of AED 10 and an Innovation fee of AED 10).

3. Why do people do short-term rentals?

They offer more flexibility and convenience, as you can choose the days, weeks or months to rent. Also, most of them are family-friendly and provide a homely experience.

You might be interested in 

  • Apartment May 7, 2024

How Dubai Holiday Homes Market Is Bringing the Best Yields for Holiday Rental Service Investors?...

  • Apartment December 14, 2023

Furnished Or Unfurnished Apartments: Which One Is Better For You?...

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