How holiday home income adds up
Short-term rentals earn a nightly rate instead of a yearly rent, so income depends on how many nights you fill and at what price. Costs are also higher than with a long-term tenant: you pay the utilities, cleaning between guests, platform fees and usually an operator to manage bookings and check-ins.
What this estimate includes
- Gross bookings. Nightly rate times nights booked, based on occupancy.
- Platform fees. What booking sites take from the host, often around 3%.
- Operator fee. Typically 15% to 25% of bookings for full management.
- Cleaning. A charge per stay, which adds up quickly with short stays.
- Utilities, service charges and licence. Fixed yearly costs you pay either way.
The Tourism Dirham of AED 10 to 15 per occupied bedroom per night is charged to guests and passed on to DET, so it is not taken from your income here.
Worked example
A one bedroom in Dubai Marina at AED 650 a night with 70% occupancy books about 255 nights, or AED 166,000 a year. After a 20% operator fee, 3% platform fees, cleaning, utilities, service charges and the permit, net income is around AED 81,000. Rented long term at AED 110,000, the same apartment nets about AED 92,000 after service charges, so in this case the long-term let wins unless occupancy or rates rise.
Before you switch
Check that your building allows holiday homes, register with DET, and use realistic occupancy for your area and season. Summer occupancy in Dubai can drop well below the yearly average.
Frequently asked questions
Do I need a licence to run a holiday home in Dubai?
Yes. Holiday homes must be registered with the Department of Economy and Tourism (DET), either by you or by a licensed operator, and each unit needs its own permit. The building may also need to give an NOC.
What is the Tourism Dirham for holiday homes?
It is AED 10 per occupied bedroom per night for standard units and AED 15 for deluxe. It is charged to guests and paid to DET each month, so it is not deducted from your income in this calculator.
How much do holiday home operators charge?
Full-service management usually costs 15% to 25% of booking revenue, often with cleaning and linen charged separately.
Is short-term letting more profitable than a long-term tenant?
It can be in well-located areas with high occupancy, but income is less predictable and costs are higher because you pay utilities, cleaning and management. Compare both using realistic occupancy.