Why Did Dubai Regulate Short Term Rentals

For years holiday home rentals fell under an ambiguous area of Dubai’s property and real estate market. During that time, anyone who had the inkling could put their property, even a room within their residence, up for short-term rental. This lack of regulation created several issues:

• As this the popularity of this unregulated market grew, so did the problems and headaches. Internet scams increased with people receiving less than what was advertised, and no means of recourse when it happened.

• A number of property owners were not vetting their short-term tenants and it began to impact the long-term residents. As a result, many developers began to ban short-term rentals within their communities in response to the complaints they were receiving from those residents.

• The Dubai government through its DTCM (Dubai Tourism and Commerce Marketing) division has regulated the hotel industry. They have used that system of regulation to assist them in monitoring public safety. However, short-term rentals did not fall under the same terms of regulation as the hotels. This had created a small loophole that needed to be closed.

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