Blog - What are the Disadvantages of Homestays?

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What are the Disadvantages of Homestays?

Many travellers are drawn to homestays for their cultural charm and lower costs, while some homeowners see them as a way to earn extra income. But before jumping in, it’s worth asking what are the disadvantages of homestays, especially in Dubai, where tourism standards are high and regulations are strict. From unpredictable guest behaviour to compliance hurdles, there are challenges that can impact both guest experience and host profitability. For a complete overview of Dubai’s short-term rental landscape, see our Airbnb Management in Dubai – The Complete Guide for 2025.

In Short

Homestays can be rewarding, but they also carry risks such as reduced privacy, inconsistent quality, and the added stress of hosting in a regulated market.

Privacy Concerns for Hosts & Guests

In a homestay, the host and guests often share common spaces like kitchens, living rooms, and sometimes bathrooms. This can lead to:

Guests feeling uncomfortable about the lack of private space.
Hosts feeling their personal routines are disrupted.
Misunderstandings over boundaries, noise levels, and house rules.
In Dubai, where many travellers expect luxury and discretion, these issues can quickly lead to poor reviews.

Inconsistent Standards & Guest Experience

Unlike licensed holiday homes, homestays can vary widely in cleanliness, amenities, and service quality. Some offer hotel-level comfort, while others feel unprepared for paying guests. This inconsistency makes it harder to maintain high ratings and repeat bookings. Guests in Dubai, especially those booking premium locations like Palm Jumeirah or Downtown, tend to have high expectations, so one sub-par stay can harm your hosting reputation.

Regulatory Hurdles & Compliance Risk

Homestays in Dubai must still comply with the Department of Economy and Tourism (DET) regulations. This means:

Obtaining a valid holiday home permit (even if you rent out part of your property).
Registering all guests with Dubai Police.
Following strict advertising guidelines, including permit number display.
Failure to comply can result in fines starting from AED 5,000. More details are available in our guide on How to Get a Holiday Home License in Dubai.

Limited Earning Potential Compared to Full Rentals

While renting out a spare room may generate some income, it typically won’t match the revenue potential of a fully private, licensed holiday home. For example:

A private 1BR in Dubai Marina might fetch AED 8,000–12,000 profit/month in peak season.
A homestay arrangement in the same area might earn only a fraction of that, as shared accommodation commands lower rates.

Higher Risk of Guest Misconduct

Because guests live in close proximity to hosts and other occupants, any disruptive behaviour becomes immediately noticeable and harder to manage discreetly. Issues like late-night noise, ignoring house rules, or damaging personal property are more common in shared setups.

Cultural Sensitivity & Lifestyle Clashes

Dubai is a multicultural hub, but it’s also governed by local customs and laws. Certain guest behaviours, even if normal elsewhere, may be frowned upon or restricted in the UAE. A homestay host must be prepared to explain and enforce cultural norms, which can sometimes cause tension.

Conclusion

While homestays can provide a unique, personal travel experience, they come with significant trade-offs, especially in a high-standard market like Dubai. Lower earnings, privacy concerns, compliance responsibilities, and the unpredictability of guest behaviour all need to be weighed carefully. For those seeking income from short-term rentals without the daily hosting challenges, Royale Stays offers a fully managed, high-return alternative.

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