- How to lease commercial property in Dubai?

How to lease commercial property in Dubai?

How to lease commercial property in Dubai?

Those who have decided to open business in the UAE, face the question on how to rent the necessary commercial premises correctly and not to get into the challenging situation.

Primarily, when choosing commercial premises, one should choose the necessary form of the company. If you will choose a company in a free trade zone, the premises that can be rented by such a company should be located only in this chosen FTZ.

After choosing the premises, one should make sure that the status of the premises and their parameters meet your objectives. It should be noted, that the commercial premises in the UAE are strictly divided into certain types, for example, office premises cannot be used for a shop, and vice versa.

Before signing the contract, one should make sure that all the documents are available – proof of ownership, status of the premises, compliance of the premises with the existing plans, availability of the permits to use the premises.

Please note that we occasionally encounter situations when clients apply to us for registration of the company already after choosing the premises and signing the rental agreement. This results the cases of not checking properly all the points mentioned above. In this case, it often ends in a loss of the prepaid rent for the facility, as the commercial premises may be entirely unsuitable for the specified objectives.

When planning the budget for starting a business in Dubai, clients also often estimate incorrectly the costs for the necessary premises, especially if the additional approvals for its operation are required.

After signing the agreement of leasing the commercial premises in the UAE, its registration in the EJARI system is required. Such registration is a mandatory requirement and gives the right, in case of a conflict with a lessor, to appeal to the appropriate judicial instance.

The lease payments are usually carried out by cheques with provision of the rental cheques for the whole term of the lease at the date of signing the contract. In case if the cheque is not paid, the proprietor has the right, after 30 days from the date of non-payment by check, to apply to the court that responds in such cases promptly and with the possible serious sanctions against the defaulter.

When registering a company, our experts receive in advance all the important parameters of the necessary facility from the client and verify it fully when checking the legal documents relating to the commercial facility and signing the lease agreement. In this case, there are no any difficulties when registering the company.