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How to rent out property in UAE

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Renting out a property can be pretty difficult if you don’t know the necessary procedures. After all, having a commercial property for rent doesn’t mean you can benefit from it immediately. You need to know the basics of property rent before renting out one of your properties. Business property for rent, agents to rent property, etc. there are many things you need to take into consideration when you have a property to rent.

In this article, we’ll talk all about the basics of commercial property for rent. With this, you’ll know the procedures necessary to rent out a property. Of course, only if you have a property for rent in the first place. We’ll observe:

1. Procedures to rent your property in the UAE

2. Guide to letting your property in the UAE

3. How to charge more rent thanks to property improvements

4. How to rent a property in the UAE

5. How can Connect Property help you rent out a property in the UAE?

1. Procedures to rent your property in the UAE

As we already mentioned, having a commercial property for rent can be pretty overwhelming if you don’t know how to rent it out. This statement is only made truer for those who try to rent out a property for the first time. There are a lot of procedures you need to follow if you want to rent a property out.

1.1. Choose a real estate company to help you

Firstly, you’ll need to get the help of a real estate company if you have a property for rent. However, you need to be strict and selective when you’re choosing one. Furthermore, you need to work with companies that are registered with RERA (Real Estate Regulatory Agency). In addition to this, the real estate company needs to be able to conduct the entire transaction professionally.

1.2. What the UAE’s listing process entails

In the UAE, you need a lot of documentation for the listing process for the property rent. All properties within the UAE are required to have a permit that allows them to be advertised by a real estate company. The documents required to get this permit are:

  • Passport copy (s) of the owner(s).
  • Signed listing agreement.
  • The title deed.

1.3. Devise your marketing strategy

Thirdly, you’ll need to create a good marketing strategy in order to find the best tenant for your property. This strategy must highlight your property for rent’s “Unique Selling Propositions” (USPs). This strategy can be considered one of if not the most crucial steps to rent a property.

Furthermore, this strategy should feature a comprehensive marketing plan and a unique insight regarding your property to rent’s price. This also includes a range of efforts, ranging from listing on portals to social media campaigns.

1.4. Help the agent get a good viewing

If you work with agents to rent property, you need to give a good first impression. You need to arrange a good view for the potential tenants by the real estate company you work with. Moreover, it’s recommended for your property to be in good condition so it attracts more tenants. In addition to this, you need to ensure that the real estate company gives comments regarding your property, the status of an offer, and constructive feedback to your customers.

1.5. Make sure to review your offer

After the selling process is done and you’ve found a tenant that wants to rent your property, you’ll need to do some procedures to validate their offer. The tenant must complete and sign a reservation form; furthermore, they need to collect a deposit to validate their offer.

After said steps are completed, the required documents are obtained from them and then they prepare a contract. Consequently, this contract must follow the agreement of the terms and conditions.

1.6. Sign a tenancy contract

Aside from all previously mentioned documents, you also need a tenancy contract for you and the tenant. This must be done before the tenant moves into the commercial property for rent. It’s recommended for the real estate company you work with to use a RERA Unified Tenancy Contract. In addition to this, we also recommend you do a standardized lease addendum that outlines the rights and responsibilities of both parties.

1.7. Receive payments

After everything is said and done, it’s time for you to receive payment for your commercial property for rent. Moreover, when you receive the payment, the tenant needs to make the payment in full when they sign the contract. On the other hand, they can also provide initial payment along with post-dated cheques.

1.8. The handover process

Lastly, there’s the handover process for your property to rent. During the process, you should ensure 3 things:

  • Required documents in order.
  • Utility contacts in place.
  • That a key and card inventory is prepared, signed, and collected.

After those 3 things are ensured, the tenant can move to the commercial property for rent.

2. Guide to letting your property in the UAE

Now you know how to rent your property in the UAE. However, you need to ensure you find a good tenant that can take care of your commercial property for rent.

2.1. Find a reliable broker

As we already mentioned before, you need to find agents to rent property so you can rent out your property efficiently. Evidently, your main objective is to find an agent with whom you can work and build a professional and friendly relationship.

2.2. Administration

Secondly, after you’ve found a broker, you’ll need to manage all documents needed to lease out your property. Some of the required documents are a property title deed, your passport/Emirates ID, and a signed form.

2.3. Do your own diligence

If you have a price in mind for your commercial property for rent, you will need to see if it’s realistic and achievable. For it, you’ll need to partake in property portals and have a good look so you can compare other properties.

Your broker also helps you with this step, giving you advice and insight into the property market. This gives you market appraisals, showing you property prices that have recently been let in the same area as yours.

2.4. Consider going exclusive

This step isn’t necessary, but it can be pretty helpful. Working exclusively with one agent makes sure your property is marketed in just one specific way. This makes you avoid a multitude of differing adverts for your commercial property for rent appearing in property portals. Some of these property portals can display a different asking price than what has been agreed on.

2.5. Marketing

Marketing not only means promoting your property but also making sure it looks clean and presentable. When the selling process begins, your property will be photographed, so you want it to be as presentable as possible. You need to complete any snagging jobs before the selling process starts.

2.6. Viewings

We already mentioned it, but it’s especially important for your property to rent to be as clean as it can be. This is because, after doing the necessary marketing strategies, you need to maintain its condition for tenants who want to see the property.

In addition to this, we recommend you tell your broker about the things you like about your property. That way, they can relay this message to potential tenants and highlight key features that might be invisible to the tenant’s eyes.

2.7. Be flexible

With this, we refer to the cheques you receive. Nowadays, a property’s rent isn’t paid in one cheque; instead, tenants pay in multiple cheques. When you receive an offer of multiple cheques, you need to be willing to compromise. Consequently, tenants pay rent themselves, meaning you’re able to get a better price if you accept multiple cheques.

2.8. Sign on the dotted line

Lastly, once you’ve found a good tenant for your commercial property for rent, it will be time to accept the offer. Check the offer and sign the contract once you understand it. Furthermore, ask your broker to clarify any part of the contract that needs it.

3. How to charge more rent thanks to property improvements

We talked about how to rent out your property to a tenant. However, you might be interested in improving your property, that way you can get a higher price on your property’s rent. Firstly, we recommend researching the market, doing so lets you get a true assessment of your property’s value. For example, you might find you have fallen below the market rate, meaning you can simply raise your rent without problems.

There are several ways to assess your rental value, mainly research portals, speaking with real estate agents or other landlords. With research portals, you can see how other landlords handle their property rent. On the other hand, speaking with a friendly real estate agent or other landlords can help you figure out your property for rent. You could ask them about rental values in the area.

In case you already know your commercial property for rent’s value, you might want to make it higher. You can do this with general and common improvements to the property. Of course, you must consider how much those improvements will cost. If you pay for work that adds to the rental value but doesn’t shift the future sale value to any extent then, in the long run, you’ll lose.

Here are some common improvements that can help you in the long run of your commercial property for rent’s value:

  • An en-suite bathroom is good for properties over a certain size. Make sure to give it a good finish to make it appear luxurious for tenants.
  • A loft conversion can be a great way to add an extra bedroom and even living space.
  • New kitchen and family bathroom.
  • Tenants are more creative with a reception room, being able to do many things with the area.
  • Generally, adding an extension can also be helpful.

4. How to rent a property in the UAE

We’ve already talked about how to rent out a property. However, let’s look at it from the tenant’s point of view. Here are some tips we recommend following if you want to rent a property. Firstly, you’ll need to consider 5 things before you let a landlord rent a property to you:

  • Budget. How much of your household income would you be willing to spend on rent?
  • Transport. How do you plan to travel between one location and the other? Do you have a car to drive or are you planning to use public transport?
  • Facilities. Which ones are you looking for in a property? Perhaps a gym or a pool on the premises would be better for you.
  • Communities. Mainly, which neighborhood are you looking for, is it one for families or single people?
  • Lastly, a service. How important is easy access to supermarkets and eateries to you?

If you want to find a good commercial property to rent, there are many steps you’ll need to do.

4.1. Step 1

Look for property listings. In the UAE, there are several of them, including print and digital. Furthermore, you can check individual buildings and search personally for a property that gets your interest.

4.2. Step 2

Once you choose your property to rent, you’ll need to set up a site visit with your real estate agent. In this case, wego recommend you to attend one hour earlier, that way you can look around the neighborhood and see its state. In addition to this, you could also talk to a few people in the neighborhood and learn things about it.

Nevertheless, once you see the apartment to rent, you’ll need to focus on the following:

  • Security systems (cameras, security guards, and an intercom).
  • The state of the apartment, tiles, air conditioning, water faucet, kitchen chimney, etc.
  • Available maintenance.
  • Check the room’s space and see how spacious it is. You can also take a measuring tape along. This will help you when you furnish the apartment.
  • Parking facilities.
  • If the place has a gym and swimming pool, check their maintenance as well.

4.3. Step 3

Lastly, once you’ve decided on the property you like, you have to negotiate the annual rent. However, don’t stay fixed on the first price they give you; you can bargain for a better deal. For example, some landlords can lower the rent if you pay with fewer cheques. Other things to take into account are:

  • Decide if you want to get your rented property furnished or unfurnished.
  • Find out if your workplace’s route is manageable.
  • If you have or plan to get a pet, check with the landlord to see if they accept pets.

Furthermore, a tenancy contract works on an annual basis, so you need to consider all your options. Canceling the contract before completion incurs monetary losses for you. However, if you’re unsure, you can look for short-term rentals instead, such as hotel apartments.

5. How can Connect Property help you rent out a property in the UAE?

Having a commercial property for rent means you can gain a high profit from it if you know the procedures. However, if you don’t, you could suffer many losses by renting your property lower than it should be. That’s why we recommend you to work alongside a company that helps you in those processes.

That is where Connect Property comes in. With over 20 years of experience in the market, we have many specialized individuals ready to help you rent out a property. On the other hand, if you’re looking for a property to rent, we also provide them. We have many properties in the UAE that might interest you.

Would you like to know more about properties and how to rent them? If you have any questions, call us on +97143316688. Or you can also email us at contact@connectproperty.ae, and you will talk to one of our representatives who will gladly answer all of your questions.

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