Short-Term Rental Rush: Dubai Expats Cash In On Airbnb Boom For Extra Income

2025-09-16 11:20:24

(MENAFN- Khaleej Times)

In Dubai, residents as young as 23 are turning to Airbnb as a new source of income - taking on year-long leases, converting apartments into holiday homes , and documenting their journeys online.

Some are buying properties specifically for short-term rentals in Dubai, while others are learning the ropes through trial and error, sharing their experiences from house-hunting and furnishing to welcoming their guests.

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For Cheyne Hogan, 23, originally from the UK, the move was unexpected. She came to Dubai on a one-way flight with no job and no clear plan. Within months, she found herself running her own Airbnb business.

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"I had no knowledge or experience, I was figuring it out as I went along," she said. What started with one two-bedroom apartment has now grown into a portfolio of nearly 10 properties, some owned and others managed for clients.

Like many in the business, Hogan quickly learned that Dubai's short-term rental market is seasonal. Winter is the peak period, especially around New Year's Eve, when tourists flock to the city and rates surge. Summer, on the other hand, often brings losses or break-even returns. "You have to accept that profits in winter make up for the slow summer," she explained.

For her, the biggest hurdle was compliance. "You need to understand the rules, work with the building security and management, deal with cleaners, and handle guest expectations. The beginning is the hardest part, but once the systems are in place, it gets easier."

Hogan has also taken her experience online. She runs a TikTok page, @airbnbdiariesdxb, where she shares tips and insights about the business. She even offers one-on-one guidance calls for people who want to learn how to get started.

How people are getting started

Another Dubai resident, Mohammed (name changed on request), works in finance and runs his Airbnb side hustle alongside a 9-to-5 job. A frequent traveller, he was always impressed by the Airbnb model and often dreamed of becoming a "superhost."

"I remember once in Bali, I spoke to the host of the villa I stayed in. He told me he was making three times what he was paying in rent. That stuck with me. When I came back to Dubai, which is a global tourist hub, I thought, 'why not try the same here'?" he said.

Mohammed began researching on Airbnb in Dubai and how to do it correctly. "The first step is registering with Dubai's Department of Economy and Tourism (DET). You need to apply for a holiday home licence, which is mandatory for each property. Without it, your listing can be taken down, and you can face fines."

According to him, setting up involves:

Signing a tenancy contract or purchasing a property

Getting a no-objection certificate (NOC) from the building management

Applying for the DET holiday home permit online

Furnishing the apartment to guest-ready standards

Listing the property on platforms like Airbnb and Booking

"Furnishing is where most of the cost goes. You want it to feel like a hotel, yet also homely. Once you're set up, the key is to manage rates carefully and respond quickly to guests," he said.

Mohammed rented a studio in Jumeirah Village Circle for around Dh61,000 annually, negotiated in a single cheque to save money upfront. Furnishing cost him about Dh26,000, including furniture, appliances, and décor. "The trick is to negotiate fewer cheques and invest in good furnishings," he said. "In peak season, I can earn between Dh7,000 and Dh9,000 a month on the unit. Summer is slower, but overall the returns are higher than long-term rent."

A growing trend

Industry experts said Dubai's position as a global tourist hub makes the city particularly attractive for short-term rentals .

"Airbnb and similar platforms are no longer just for holidaymakers," said Amir Shihab, a property consultant in Dubai. "We are seeing more residents use them as a side income or even full-time businesses. The demand is strong in tourist-heavy areas like Dubai Marina, Downtown, and Palm Jumeirah. For investors who manage compliance and quality, the returns can exceed long-term rental income by 20 to 30 per cent."

Still, Shihab warned that the market is becoming crowded. "Competition is high, and guests have plenty of options. The difference comes down to service, reviews, and pricing strategy. Those who treat it like a business do well. Those who think it's passive income are usually disappointed."

For Hogan, the key lesson has been persistence. "The start is stressful and expensive. But if you understand the market, comply with the rules, and manage expectations, it's a business that can grow quickly in Dubai."

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