The Long and Short of Dubai Property Rentals

Short-term leasing is apparently a very popular activity in the Middle-East and this phenomenon holds true even in Dubai. Such is the wide-spread ‘popularity’ that a mere declaration that one is looking for property to rent in Dubai is enough to flood the inbox with various short term lease deals. Short term leasing can in reality put quite a strain on the community and surroundings. The residential market in Dubai has been the result of well thought out initiatives. Considerable planning has been involved in the design and development of each residential community. Every aspect and element is particularly geared towards offering a rich and involving residential experience. 

Short term leasing of Dubai property rentals can be quite disruptive in nature. With the residency patterns changing at frequent intervals, it may lead to increased interference with the living environment in the community. This potential instability can lead to increased friction among the long term residents as well as the community resources.

This is why the Dubai authorities have drafted in specific laws to govern the transactions involved in both short-term as well as long term residential rental activities. Short term lease agreements have been restricted to those entities that hold a specific trading license. This trading license has been made available only to hotel apartment companies. Thus is it them and them alone who can offer short term leases to those seeking a Dubai apartment for rent. 

In-fact, the Laws clearly state that only hotel apartment companies are in a position to offer apartments for a tenure that does not extend to beyond a year. Anyone beyond such entities, to offer short term rentals is sure to fall foul of the law and may be subject to prosecution and penalties from the authorities. Short term lease rentals are considered to be a tourist activity and are expected to be carried out only in areas or buildings that have been specifically demarcated for this purpose.

The authorities too have begun cracking down on such illegal activities. Shoreline communities have been particularly attractive for tourists and residents alike, with leases being in high demand. But residents have now reported to have been cautioned off by the authorities over indulging in short term rental activities. The Department of Economic Development, in an attempt to demonstrate that it means business, has even reportedly warned residents at high-end developments such as The Palm Jumeirah.

In light of developments such as this, it makes sense to proceed with caution when looking for residential apartments for rent in Dubai. It therefore would be wise to conduct a thorough research and background check before entering into any agreement.