The Middle East is rapidly gaining traction with foreign real estate investors due to the area’s emerging economies and growing real estate markets. You can buy real estate or simply get a rent agreement for commercial property. However, the guidelines regarding these transactions vary from country to country.
In this article, you will learn about the real estate buying and renting process for foreign investors in seven Middle Eastern countries. In addition, you´ll get information that will help you decide what factors to keep in mind to make the best of your buying or rent agreement.
- Can a foreigner buy or rent out property in the Middle East?
- How to rent a commercial property
- Describe your property and rent it quickly to the right tenants
- Tips for writing an effective description for your rental property
- Breaking down commercial property sales
- How can Connect Property help you?
1. Can a foreigner buy or rent out property in the Middle East?
The Gulf Cooperation Council (GCC) states allow many forms of foreign ownership across their respective territorial borders, although subject to a number of restrictions. Said restrictions have a massive impact on a potential investor’s strategy, as they can restrict an investor’s return of investment, working options, and security.
There are three types of property interest in the Middle East. The contractual lease to this day is a very weak form of real estate ownership. Therefore, it typically doesn’t survive any major setbacks like foreclosure or bankruptcy.
On the other hand, rent agreements for commercial property (long-term leaseholds) and freehold title have legal accountability and usually survive the event of bankruptcy and foreclosure. We in Connect Property will make sure that you know everything there is to know before making a decision.
2. How to rent a commercial property
A rent agreement for commercial property is the blueprint for a tenancy. The rent agreement points out all of the obligations and rights of a landlord and its tenant. This is an extremely practical document with legal information and stipulations that’s full of crucial details.
Whether you choose a rent agreement for commercial property or freehold title, you need to make sure that it´s signed in front of a public notary. Therefore, this ensures that the document is binding and can survive any setbacks or legal issues.
If there are any doubts left on what is a rent agreement for commercial property, you can reach Connect Property to help you decide. Understanding your individual requirements is what we do; we will make sure that you always make the right choice.
3. Describe your property and rent it quickly to the right tenants
The real estate market is very competitive, so how do you make your very own property stand out from the rest? There are a few inexpensive ways to get your property rent-ready as soon as possible. Giving the right description is the main one, and could be a real deal-breaker.
First, you need to remember that tenants will like to make your rental property feel like their own home, so you need to look at it from their perspective and make the best of it. Keep in mind that first impressions are a one-time thing when you are describing your property.
Every description of a property for rent should include information for tenants to decide whether or not your property is the right one for them. We in Connect Property are committed to helping you make the best of your listings and get the best deals.
What to highlight when you are renting a property?
There are a number of things and aspects of your property that need to take to the spotlight if you are looking forward to renting, among those we can mention:
Usually, the first thing tenants see is the first impression of a home and usually sets the mood of how the potential tenant will perceive the rest of the property. If there are any gardens, these should be free of weeds, with a mowed lawn, and trimmed bushes.
A quick and inexpensive way to transform the front yard and make it look great is to create a color scheme around the garden and even plant some bushes and a lot of colorful flowers. It is said that color enables a soothing and inviting feeling.
Trash and trash receptacles
Get rid of any trash or residue in the front yard. A neat or new front door and beautiful doorknobs create a wonderful first impression. Oil the door so it’s not hard to open or gets stuck, or this will make it look like there is no maintenance going on whatsoever. Take your trash receptacles out back where no one can see them.
A fresh coat of paint
A fresh coat of paint will do wonders for the way your property looks. Make sure there are no dark spots or any mold on your walls. A new coat of paint will make the property look fresh and the rooms bigger.
A nice and clean carpet will create a warm and inviting sensation, so make sure to get a new rug or take yours to the cleaners.
The first and most important step is to clean the oven thoroughly, as a tidy kitchen is the reflection of clean owners.
Clean the shower and toilet, and also get rid of any soap stains and wash the sink.
Window tracks and sills
Clean all the dust from the curtains and oil up the window tracks, as a faulty window that won´t open is a sign of careless maintenance and poor cleaning skills.
If instead of curtains you have blinds, make sure they are squeaky clean and not broken. A broken blind is easily replaced since they are not expensive you can get them at any hardware store.
Make sure all your bulbs are working and none has burnt out. This way you can light up all the rooms and turn the lights on for special showings of the property. You can also raise the curtains or open the blinds to allow natural light to come inside the house.
You can also hire a cleaning company to take care of the dirty work for you. These companies are specialized in cleaning residential and commercial property, and also getting them ready for showings to potential tenants or buyers.
4. Tips for writing an effective description for your rental property
Be original in your description
Remember that tenants will look at a lot of properties listings, so you’ll have to stand out and be the best among the competition. Usually, a great way to do so is by staying away from phrases like, “nice location” or “beautiful walls”. It’s more effective to describe the unique characteristics of your property.
Show the modern side of your listing
If your property has been completely updated, then describe what things are modern and new. This way, it is easier to point out the uniqueness of your property.
Property description, length, and format
There is no right or wrong here, but up to four or six sentences is the ideal length for any description. Highlight a few assets and maybe a recreational site nearby. Therefore, short, quick, and informative sentences are all you need.
Abide by housing laws
You need to comply with every housing law while you are looking for a new tenant. In most countries, it is a violation of Fair Housing laws to discriminate against race, religion, or marital status. Let’s assume you post your listing, well you are not allowed to write “No older couples allowed.”
This is a recurring theme throughout the entire listing process. In addition, when you’re giving a tour of your property, it’s against the law to say something like “this place is perfect for any family with children” or favor certain tenants to a particular property.
Very often a tenant doesn´t want his or her phone number or e-mail to be exposed to the general population. Therefore, creating an alternative e-mail account for your property listings is a great way to deal with this issue. For example, your very own e-mail address could be firstname.lastname@example.org. Therefore, all your personal and rental e-mail are separated and can be handled separately with no attachment to your name.
Also, you can set up a voice assistant so your phone number remains private. A voice assistant generates an alternate phone number. This way when people call your voice assistant, the call pops up on your phone with the newly created account name. For instance, “abcproperty”, this way, you will know if an unknown caller is a potential tenant who has found your property.
If you choose Connect Property, you´ll be able to manage easily and quickly any lead and evaluate potential tenants from your own account.
5. Breaking down commercial property sales
Commercial property usually refers to a building or construction that serves as the main housing for a business or company that´s only used for business activities. Commercial property as a definition generally refers to structures that house a number of companies or businesses, but can also refer to portions of land used to make revenues, as well as large properties up for rental.
The definition of a property as commercial has several implications for how it is funded and financed. It also includes the tax rates and laws that are applied to it.
Commercial property sales include all the buildings we see in our everyday, like malls, warehouses, construction sites, and big company stablishments. For example, the RCA Commercial Property Price Indices measure the price changes in commercial real estate across the United States.
Commercial property sale vs. residential property sale
Investing in commercial property has traditionally been seen as a safe bet. In addition, the cost of any initial investment is very high compared to residential real estate. However, overall revenue and profits can also be higher, and some common issues that come with handling residential tenants are not present when dealing with an established or new company.
Also, commercial property investors may use the triple net lease; therefore expenses like taxes, insurance, and maintenance are the responsibility of the company leasing the premises. This advantage is only available to commercial property investors and not residential real estate investors.
In addition to promising leasing terms, commercial property usually benefits from direct pricing. There are a number of factors that an investor who owns residential property must look at. Therefore, an investor of commercial property can rely on the revenue declaration that shows the current market value of leases. So it can then be associated with the capitalization rate of any commercial properties in the surrounding areas.
6. How can Connect Property help you?
Connect Property is a platform for clients to secure, sell, and market their properties. In addition to meeting industry and customer requirements, we in Connect Property also make sure you get a satisfactory experience while we provide support around the clock. We have in store a complete set of potential listings, including the location, type of property, and any other distinctive selling characteristics.
Similarly, in Connect Property we have the ability to classify properties by a number of parameters like the range of price, exact locations, and more. We´ll also assist you to refine your search so you´ll find exactly what you are looking for.
Would you like to contact Connect Property? You can call at +971 43316688 or send an email to CONTACT@CONNECTPROPERTY.AE, and you’ll talk to one of their representatives that will gladly answer all of your questions.