
Renting out your off-plan commercial property in Dubai can mean stepping into the devastation of hidden costs. So before you approach or sign anything with a prospective tenant for your property lease, ensure that you understand and agree to the basic terms of the Dubai commercial property lease agreement, such as length of the lease, amount of the rent, configuration of rights, and responsibilities – for you and the tenant.
Having an off-plan property in Six Senses Dubai can be very rewarding. So make sure you rent your property to the honest tenant at a good price by doing some preliminary work before advertising your off-plan commercial properties.
Top 5 tips for commercial property renting in Dubai:
Listed below are some tips that you must keep in your mind while renting your commercial property in Dubai:
1. Price should be right:
Nothing is more time-taking and expensive than overselling your off-plan properties in Dubai. On the other hand, pricing too low is not good either. Otherwise, you lose money.
2. Get professional advice:
Better Commercial advisors are standing by your side at each phase of the leasing procedure, from pricing and advertising to tenant selection and contract signing. Get advice on the standard price for a property rental in Dubai like yours, as making attractive rental terms can help you occupy your space quickly.
3. Find the right tenant:
Working with an off-plan commercial agent when finding a tenant can save your money, time, and the hassle of listing your commercial property in Dubai to underperforming tenants and dealing with several consultants, agents, and landlords. The search for the right tenant is also related to other aspects. For instance, if the tenant’s business requires changes to your rental space in Dubai, such as adding cabins or rewiring, you must agree upon whether you will allow these modifications or not and who will bear the expense of these modifications.
4. Know your responsibilities:
Keep your commercial property in Dubai safe and hazard-free. For example, install and test smoke detectors and conduct a property inspection. Agree on who will pay for repairs and maintenance.
5. Understand the terms of the rental agreement:
Ask your consultant to draw up the contract list the terms and conditions to specify the rental and renewal terms of real estate rental in Dubai. Also, set out what you will permit tenants to do so. You still have the right to eliminate them if they violate the obligations set out in the Dubai commercial property agreement.
Documents Required to Lease a Commercial Property in Dubai
Instead of possessing a leading state license, tenants applying to rent commercial property also carry other important documents like provisional approval from Emirate’s licensing authority (ELA), a company manager passport whose name is mentioned on the trade license, and a signing authority letter if the name is missing from the trade license.
It is a must for every tenant to know the difference between operating business onshore and free-zone. This actually helps the tenants to understand the expenses and benefits linked with each type.
International entrepreneurs running their businesses onshore in the UAE are worked under the regulations by the Dubai Economic Department (DED) and are essentially required to have local partners, having 51% shares of your company. Moreover, business owners also need to pay 5% duty in case they import any type of goods for sale. In contrast, operating a business in a free zone is easier in a way that it provides 100% ownership of your business and makes local free-zone authority your partner. Additionally, if you are planning to run a business onshore, although they are not compulsory to follow one has to consider them.
Making CHanges in the property
A tenant can make changes in the interior of the property after obtaining the Non-Objection Certificates (NOC) from the landlord, or building manager, or Dubai Municipality or relevant bodies if the property is renting out in the free zone area, Dubai Civil Defense and Emirates Health and Safety.
Early Termination of Rent Contract in Dubai
According to the regulations, the landlord can ask for a two-month rent as a penalty fee if you want to leave the property early. The 2 months rental fee is known as compensation for him for the losses that may incur to him due to leaving early and not completing the rental contract. Also, you should not stay at the property if the early leaving is in process. Negotiate with the landlord to allow for a few more grace days for relocating and explain the situation to get mutual consent and solution. However, it depends upon the landlord’s decision.
Sub-letting Commercial Property in Dubai
Upon approval, tenants can sublet their commercial property in Dubai to further parties if they have written approval from landlords.
You should know these small primary facts and follow guideline tips to select a suitable commercial property on rent in Dubai.
The Length of Commercial Tenancy Contract
The length of a tenancy contract is at least 12 months which can be renewed automatically after 12 months on mutual consent if both parties are willing to extend. A tenancy contract can be extended up to 10 years if they both want to.
Knowledge About Commercial Assets
tenants should have knowledge about the commercial properties which are usually available as shell or core. it means property units are provided to tenants without any fixtures and finishing. Usually, the pantry and toilet facilities are provided in common areas of the building. As the competition is increasing in the real estate market, landlords started providing huge and well-equipped units to earn better rents with better amenities to offer.
Consult Fam properties:
Are you looking for a tenant for your commercial property in Dubai? Look no further than Fam properties. Visit our website to get started! Whether it is ready or off-plan properties Dubai, we deal in all real estate types. We are also working with Select Group, the leading real estate developers in Dubai, by assisting them in their existing and upcoming projects like Peninsula Five, Six Senses Dubai, and many more.