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Holiday Homes, Rent, Debt, Part Time Jobs, & more.

Holiday Homes, Rent, Debt, Part Time Jobs, & more.

Drive Live

Dubai Eye 103.8

02 April 2018

Host
There’s just so much more to hear. Our podcast is at DubaiI1038.com.

Sonal is here with me today as Tim is taking some well-earned rest. We’re going to focus for the next few minutes on Airbnb. Drive Live Talks Legal. Our guest today, as usual, is Ludmila Yamalova.

Host
Ludmila, I just got slightly distracted because somebody asked me a question about you today, and they weren’t quite sure of your name. It’s making me laugh a little bit, but our guest today is Ludmila Yamalova from Yamalova and Plewka.

Ludmila Yamalova
I think it must be one of those experiences where you sometimes have to repeat your name to people.

Host
On a daily basis!

Ludmila Yamalova
And I’m used to it being distorted. Whenever somebody pronounces it correctly, I’m in awe and very pleased—it’s more of an exception than the rule.

Host
Well, this person is a big fan of you on the show. Obviously, they thought you had a very different name, but we won’t share that on air.

Ludmila Yamalova
I’ve heard every possible variation. It’s not bad, but it’s not right.

Host
Let’s start by looking at Airbnb because I mean, it’s astounding. I’m looking at this report in front of me that says revenues are up 421% in Dubai, which is phenomenal. But with anything that’s a growing trend, with anything that’s new, there are a lot of pitfalls too. Most people might think, “I often book a hotel or I’ve got a big family now, so it might be easier to book a home where I can have access to a kitchen and cooking.” But it’s not as straightforward as just paying Airbnb and completing the transaction, is it?

Ludmila Yamalova
Correct, and that’s because the UAE has its own regulatory environment for treating Airbnb homes, which are referred to here as “holiday homes.” There’s a body of laws and regulations implemented, starting in 2013, and various executive resolutions since then, to regulate the holiday home industry.

In other countries, Airbnb might not be regulated in the same way it is here. Because of that, you’re absolutely right—it’s important to understand the legal framework. For example, you might wonder, “Why would I need a license if I want to rent out my property while I’m away on holiday?” But in Dubai, there’s a clear regulatory environment for this.

Host
And these regulations apply mostly in Dubai, correct?

Ludmila Yamalova
Yes, it’s very much Emirate-based. While Airbnb exists throughout the UAE, Dubai has the most clear and stringent regulations for properties considered holiday homes. These properties often get rented through Airbnb.

The regulations aren’t so simple. Just because it’s your home, it doesn’t mean you can do whatever you want with it. In Dubai, even if it’s your property, if you want to rent it out short-term, the property is considered a holiday home, and you’re subject to regulations.

Host
That’s interesting. When did these regulations start?

Ludmila Yamalova
The first body of law was introduced in 2013—Law No. 41 of 2013—regulating the leasing activity of holiday homes in Dubai.

Back then, the regulations focused on companies managing short-term rentals rather than individuals because Airbnb wasn’t as popular. Real estate companies began offering short-term rentals under their brokerage licenses, and the government stepped in, stating this activity needed separate regulation.

Host
That makes sense because the market for holiday rentals is so different from long-term leases.

Ludmila Yamalova
Exactly. The margins, expectations, and obligations are very different. For example, if you’re renting a property for a week and it doesn’t have air conditioning or promised amenities, it’s a much bigger issue for short-term tenants.

This led to the involvement of the Dubai Tourism and Commerce Marketing (DTCM), which now oversees licensing, regulations, and enforcement for holiday homes.

Host
What does the licensing process look like?

Ludmila Yamalova
For individuals, it’s relatively simple. You need to submit documents like your Emirates ID, passport, and title deed. You can apply for a license for up to four years.

For companies, the process is more involved and depends on the type of business they operate. The DTCM website provides resources, including a “Holiday Homes User Manual” published in 2017, summarizing laws, regulations, and fines.

Host
And these regulations help both property owners and renters, right?

Ludmila Yamalova
Absolutely. They protect renters by ensuring properties meet standards and provide recourse if issues arise. For property owners, the regulations offer clarity and protect against misuse of their homes.

Fines for violations range from AED 220 to AED 100,000, depending on the severity and frequency of the offense.

Host
What about restrictions on renting out individual rooms?

Ludmila Yamalova
The law requires properties to be rented as a whole unit, not per room. Violating this can result in fines or license suspension.

Host
That’s great information, Ludmila. We’ll dive into employment law and other questions next. Stay tuned.

Host
We’re back with Drive Live Talks Legal and still joined by Ludmila Yamalova. We’ve got some great questions coming in, so let’s dive into them.

This first one is from Rasha:
“Are there any restrictions on how many properties I can rent out through Airbnb or similar platforms?”

Ludmila Yamalova
The key restriction isn’t on how many properties you can rent out, but on the terms of the rental. If the property is rented on a short-term basis—like a week, two weeks, or even a month—it’s classified as a holiday home. That means it needs to be licensed by the Dubai Tourism and Commerce Marketing (DTCM), regardless of how many properties you own.

For individuals, the licensing process is straightforward. You’ll need documents like your Emirates ID, passport, and title deed, along with proof that the property meets required standards and all fees have been paid.

Host
And what about renting out individual rooms?

Ludmila Yamalova
That’s not allowed. The law in Dubai specifies that properties must be rented out as a whole unit. Renting individual rooms is a violation and subject to penalties, which can range from fines to license suspension or cancellation.

Host
Here’s another question from Dave:
“I received my gratuity payout from my previous employer in two post-dated checks. I cashed the first one, but my employer told me to wait for confirmation before cashing the second. Now they’re ignoring me. What should I do?”

Ludmila Yamalova
First, cash the second check. Until you attempt to cash it, your claim is premature because the company hasn’t technically defaulted. If the check bounces, you’ll have legal grounds to act.

Once it bounces, you can report it to the police. A bounced check is considered a criminal offense in the UAE, and the police will call the company to account for it. Even though jail is no longer automatic for bounced checks under AED 200,000, reporting it is an effective way to pressure the company into paying.

If the funds are still unavailable, your next step would be to file a claim with the Ministry of Labour for unpaid dues.

Host
Another employment-related question from an anonymous listener:
“My company often delays salary payments for two to three months. What can I do about this?”

Ludmila Yamalova
If your company is registered with the Department of Economic Development (DED) and uses the Wage Protection System (WPS), salaries must be paid within 45 days. If not, the government can block the company’s operations.

If your company isn’t part of the WPS—for example, if it’s in a free zone—you’ll need to file a complaint with the Ministry of Labour or the free zone’s mediation committee. Unfortunately, if delayed payments are a pattern, the most practical option may be to resign and move to a more reliable employer.

Host
This one comes from Mohamed:
“My father recently lost his job, and he has some loans left to pay. Am I liable for his debts if he leaves the UAE? We’re on separate visas and work for different employers.”

Ludmila Yamalova
No, you’re not liable for your father’s debts unless you’ve co-signed or jointly guaranteed them. Just being a family member doesn’t make you responsible for his financial obligations.

Host
Here’s a question about part-time work:
“Can I work as a DJ on the side while employed full-time with a semi-government company?”

Ludmila Yamalova
Yes, you can, thanks to recent changes in UAE labor laws. You no longer need a No Objection Certificate (NOC) from your full-time employer to take on part-time work. However, you’ll need to obtain a part-time work permit and ensure your side job doesn’t violate any terms in your employment contract.

Host
And finally, a question about intellectual property:
“I’m a freelancer working with schools. Sometimes, other staff or shadow teachers take pictures of my lesson plans and use them without my consent. What can I do to protect my intellectual property?”

Ludmila Yamalova
This is a tricky situation because enforcement depends on proving ownership and damages. Legally, you can take action on two fronts:

  1. Criminal: File a complaint under cybercrime laws if the material is distributed digitally without your consent.
  2. Civil: Pursue a civil case for copyright infringement, but you’ll need to show evidence of financial or reputational harm caused by the misuse.

Practically, the best approach is prevention. Be strict about your no-photography policy and limit how widely your materials are shared.

Host
That’s all we have time for today on Drive Live Talks Legal. Ludmila Yamalova, thank you so much for joining us and for answering these questions.

Ludmila Yamalova
Thank you—it’s always a pleasure.

Host
There’s just so much more to hear. Download our podcast at DubaiI1038.com.

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