- Broker Directory
- My Tools
- News & Advice
- Market Trends
- Other GN Sites
Whether you are a start-up or a multinational company looking to open a branch office here in the UAE, careful considerations must be taken into account when you are on the hunt for the perfect business location. Here are guidelines to ensure that you will not be taken aback by nasty surprises:
Space types – The country brims with commercial properties in different types, sizes and rental prices. Identify the space that best suits your business requirements. Whether it is an office, warehouse, storage yard or retail showroom, ensure you know the difference between shell and core, and fitted space.
Lease terms – Tenancy contracts vary depending on the type of property you require and the location. Generally, commercial space can be leased for a minimum of one year and extended for up to 10 years.
Payment method – Cheques are the most common form of payment method accepted by landlords. Depending on what you have agreed upon before signing the lease, you can issue a cheque every quarter or two cheques within a year. You also need to shell out 5% of the total rent amount as security deposit, which is refundable when you do not wish to renew your contract upon expiry. However, the landlord has the right to deduct a certain amount from your deposit if there are damages to the property at lease expiry.
Charges and service fees – Aside from the rent, tenants should keep in mind that they also need to pay agency/commission fees upon signing the lease. There are also maintenance and service charges to consider in the entire duration of the lease.
Property alterations and subletting – Tenants can make renovations or additions to the property if they have obtained permission from the landlord, the property management company handling the building and any relevant authorities. As for subletting a rented unit, the tenant needs a written permission from the landlord.
* Cheques are the most common form of rent payment method
* Tenants can make alterations upon the approval of the landlord
* Subletting may also be allowed with the landlord’s permission
Source: Ellen Joyce Soriano, Special to Properties
The writer is a freelancer