Holiday Home Management Fees in Dubai

Two managers quoting 20% can cost you very different amounts. The difference is the base the percentage is applied to.

Airbnb, Booking.com and other booking channels each deduct a commission or service fee before they pay out. Across a typical mix of channels we use an average of 16% of the booking value. A commission taken on the full booking value is therefore larger than the same commission taken on what the platforms actually pay out.

On these illustrative numbers the gap is AED 320 a month, or about AED 3,800 a year, at the same headline rate. Ask every manager to show the calculation on a sample statement.

• Onboarding or setup. Several operators advertise free onboarding; others charge a one-time fee for photography, listing setup and inspection, sometimes deducted from the first month’s income.
• Cleaning and linen. Usually charged to guests as a cleaning fee per stay. Ask whether any turnover, linen or laundry cost is ever billed to you.
• Maintenance. Ask whether contractor invoices are passed through at cost or with a markup, and the amount above which your approval is needed.
• Consumables. Toiletries, coffee, cleaning supplies: included in the fee, or recharged?
• Monthly retainers. A fixed monthly charge paid even when the home is empty changes the economics in quiet months.
• Exit costs. Early-termination fees, and whether the manager keeps commission on bookings already made after you leave.

• Building service charges. These stay with the registered owner however the home is let.
• DEWA, cooling and internet. Consumption usually rises with guest stays; ask how utilities are paid and shown on statements.
• Repairs, replacements and furnishing.
• Insurance. DET requires comprehensive insurance from a Dubai-licensed insurer for the whole permit period.
• The DET holiday home permit. DET’s user guide lists AED 370 for a studio or one-bedroom, plus AED 300 for each additional bedroom, up to AED 1,270. See our permit guide.

The Tourism Dirham is different: it is paid by guests (AED 10 or AED 15 per bedroom per night, depending on classification) and collected and passed to DET by the permit holder. It is not your income and should not be counted as revenue.

Some operators offer a fixed monthly rent instead of a commission. You get predictable income; the operator keeps whatever the home earns above that rent and carries the risk of empty nights. Guaranteed-rent contracts typically run for several years rather than one, and the rent is set below what the operator expects the home to earn.

Commission-based management gives you the upside of strong months and more flexibility to exit, in return for income that varies with the season.

Ask for the minimum term, the notice period and the exit terms in writing at the first conversation. A lower rate with a long lock-in can cost more than a higher rate you can leave if performance disappoints.

We charge a single percentage of what the property earns, with no setup fee and no monthly retainer. We quote the rate after the free assessment, because it depends on the property and the work involved, and we show you what it is calculated on and which costs stay with you before you sign.

Our published terms have a three-month minimum period. After that, either side can exit with two months’ notice.