Dubai: If you are seeking a reliable source of passive income, consider transforming your home into a holiday rental. This strategy is particularly lucrative in Ras Al Khaimah, an emerging tourist hotspot renowned for its natural landscapes, from sandy beaches to rugged mountains. Notably, it also has the highest peak in the UAE, attracting visitors year-round.
For those looking to generate extra income – whether you are a tenant or recent homeowner – the process begins with obtaining a holiday home permit from the Ras Al Khaimah Tourism Development Authority (RAKTDA). You will also need to undergo an inspection to ensure your property meets the necessary standards for hosting guests.
Can tenants rent out their homes as holiday rentals?
Tenants interested in turning their home into a short-term rental while they are away, can apply for a holiday home permit. However, they will first need a No Objection Certificate (NOC) from the landlord, granting permission to use the property as a holiday home.
Required documents
For tenants or property owners, they will need to gather the following documents for the application:
• Copy of your passport
• Copy of your Emirates ID
• Latest Etihad utility bill
• Valid tenancy contract attested by RAK Municipality (for tenants)
• NOC from the landlord (for tenants)
• NOC from the developer, if your unit is under the developer's area management (for property owners)
How to apply for the permit
To begin the application process, visit www.holidayhomesrak.com and create an account. Here’s how:
• Select ‘Individual’ and fill in your full name, nationality, Emirates ID number, email address, mobile number, and an alternate contact number.
• Create a username and password, then click ‘Register’.
• Pay the Dh100 registration fee online. You will receive a confirmation email shortly after. Click the link in the email to proceed with your application.
Next, log in to your new account and provide your unit details, including:
• Type of permit (luxury or standard villa/apartment)
• Commercial name
• Full address (plot number, unit number, floor number, area name, street name, and location)
• Etihad Water and Electricity (EtihadWE) account number. This is authority in charage of electricity and water in northern emirates.
• Number of bedrooms
Upload the required documents based on your status as a tenant or property owner. Once everything is filled out, review your details and click ‘Submit’. Your application will be reviewed within two working days.
Pass the inspection stage
After your application is submitted, your unit will be assigned for an inspection. During this process, you will need to meet specific conditions and safety requirements for your villa or apartment. Some examples include:
• 24/7 security and maintenance for guests
• Appropriate balcony furniture
• A waste collection and recycling process
• Parking facilities
A detailed checklist outlining the standards for bedrooms, kitchens, bathrooms, amenities and living areas is available on the holidayhomesrak.com website under the ‘Classification Manual’. Ensure your property meets these criteria, whether it is classified as luxury or standard.
Once your inspection is successful, you will receive an email notification with a link to the payment portal for the permit fee. If your application is rejected, you will be informed of the reasons.
Cost of the permit
Once your permit is approved, you will need to pay the following fees based on the number of bedrooms in your property:
• One-bedroom: Dh300
• Two-bedroom: Dh600
• Three-bedroom: Dh900
• Four bedrooms or more: Dh1,200
• Standard holiday home classification: Dh50
• Luxury holiday home classification: Dh50
Keep in mind that the permit needs to be renewed annually. Additionally, you are responsible for collecting the tourism dirham and destination fee on behalf of RAKTA for each occupied unit per night.
If managing the property feels overwhelming, consider hiring a property management company. They can handle reservations, bookings, and maintenance, allowing you to enjoy the benefits of your holiday rental without the hassle.
