Dubai's Airbnb surge: Expatriates capitalize on the short-term rental boom for supplementary earnings
In the bustling city of Dubai, the concept of short-term rentals has become a lucrative opportunity for many residents. Two such individuals, Cheyne Hogan (23) and an unnamed finance professional named Mohammed, have transformed their apartments into holiday homes, using Airbnb as a platform to generate additional income.
Mohammed's inspiration for this venture came from a host he met during a trip to Bali, who was earning three times his rent through Airbnb. With this idea in mind, Mohammed embarked on his own Airbnb side hustle, complementing his 9-to-5 job.
During peak season, Mohammed can earn between Dh7,000 and Dh9,000 a month from his Airbnb rental unit. This figure is not far from industry predictions, which suggest that the demand for short-term rentals in tourist-heavy areas of Dubai can exceed long-term rental income by 20 to 30 per cent.
Before diving into the world of Airbnb, Mohammed undertook extensive research about the process of setting it up in Dubai. Cheyne Hogan, an expat from the UK, also ventured into the Airbnb business, managing nearly 10 properties within months of her arrival in Dubai.
The success of these individuals underscores the attractiveness of Dubai as a global tourist hub for short-term rentals. However, setting up an Airbnb business in Dubai requires compliance with certain rules. Obtaining a no-objection certificate (NOC) from the building management is necessary, and a holiday home licence is mandatory for each property listed on Airbnb.
Moreover, signing a tenancy contract or purchasing a property is a prerequisite for setting up an Airbnb business. Furnishing the apartment to guest-ready standards is also essential, ensuring a comfortable and inviting experience for guests.
Cheyne Hogan learned the importance of understanding rules, working with building security and management, dealing with cleaners, and handling guest expectations. She even shares tips and insights about the Airbnb business on her TikTok page, @airbnbdiariesdxb, and offers one-on-one guidance calls for those interested in learning how to get started.
Mohammed's rental properties are not specified in the article. As for Cheyne Hogan, no information about her manager in Dubai is publicly available. Despite the seasonal nature of Dubai's short-term rental market, with winter being the peak period, especially around New Year's Eve, and summer often bringing losses or break-even returns, the potential for income remains enticing for many.
