Holiday Home Damage Deposits in Dubai: What Guests and Hosts Should Know

Is there a fixed damage deposit for holiday homes in Dubai?

No. Unlike long-term tenancies — where market convention puts the deposit at around 5% of annual rent — holiday home damage deposits in Dubai are not legislated. Dubai's Department of Economy and Tourism (DET, formerly DTCM) regulates the permit to operate a holiday home, not the deposit. So the operator sets the amount, and what counts as fair comes down to the property's value and how the deposit is collected. This is the detail most guides get wrong.

What is a typical amount?

For direct bookings, damage deposits commonly range from a few hundred dirhams for a studio to several thousand for a large or luxury unit — set to the realistic cost of repairing likely damage, not an arbitrary figure. On the platforms it works differently: Airbnb does not charge an upfront deposit at all, relying on authorization plus AirCover instead. Where the money actually sits is what determines the guest experience.

How the deposit should be held

• Card authorization hold (best): the amount is reserved on the guest's card, never charged, and released at checkout. No cash changes hands — see pre-authorization vs charge.
• Cash on arrival (worst): awkward, untraceable, and slow to return — a frequent source of one-star reviews.
• Bank transfer: traceable but heavy, with a refund you now owe and fees to cover.

Getting a holiday home deposit back

As a guest, protect yourself the same way you would with any deposit: photograph the property at check-in and check-out, report any pre-existing issues immediately, and get the release confirmed in writing. Because holiday-home deposits aren't governed by tenancy law, your leverage is the booking platform's resolution process and, for direct bookings, your card issuer — the general principle is the same one in how to get your deposit back.

For hosts: protect the property without hurting reviews

A damage deposit only costs you bookings when it feels like a risk to the guest's money. Holding instead of charging fixes that — the guest sees a hold they know they will get back, and you keep documented protection. Akara lets holiday-home operators send a branded hold by link before check-in and release it in one tap after — built for property and rental teams across the UAE.