How to Rent a Commercial Property in Dubai
It takes consistent hard work and effective decision-making to plan a thriving business. A vital part of managing a successful business involves finding a suitable commercial space. This is because the place where you work plays an important role in business expansion.
Dubai, being a futuristic city, has all the facilities to upscale any legitimate business. Renting a commercial property in Dubai is an ideal option to get a business thriving with minimal capital. That said, here’s the detailed procedure about how to rent a commercial property in Dubai. This will help you set up your business in no time.
Prerequisites for Renting Commercial Property in Dubai
Before renting a commercial property, there are certain legal obligations to avoid conflicts later. The steps for renting a commercial property in Dubai are detailed below.
Eligibility to rent a commercial property in Dubai
There are several types of business licences in Dubai. They are required before starting any business in the metropolis. To be eligible to rent a commercial property in Dubai, the customer must have a valid trade licence.
In Dubai and other Emirates, the licence-issuing authority plays a major role. This is because the local licencing authority narrows down the locations with available commercial units.
For instance, the Dubai Economic Department – DED, issues trade licences for onshore businesses. Whereas, to rent a commercial property in Dubai’s free zone areas, a trade licence from free zone authorities is required. Such authorities are Dubai Multi Commodities Centre – DMCC, Dubai HealthCare City, Jebel Ali Free Zone, Dubai Silicon Oasis – DSO, and many others.
Obtain the required documents
The rules of respective free zones apply to the companies established there. Similarly, the list of required documents varies on the type of company, business activity and the free zone authority requirements.
Additionally, getting the right type of permits, employee visas, and RERA forms in place is essential to practise any business at full scale in Dubai. Such legal documents are necessary to obtain approval for rental contracts.
You must have the following general documents lined up to rent a commercial property in Dubai.
- Compulsory permits to use the premises
- Compliance of premises with existing plans
- Status of commercial property
- Proof of business ownership
That said, if you are not confident enough to deal with the legal aspects of renting a commercial property in Dubai, you may hire a real estate agent. There are numerous benefits to hiring a licenced real estate agent.
A real estate agent can streamline the process as they are aware of how to rent commercial office space and other property in Dubai. They are the industry experts when it comes to real estate. A real estate agent knows how to determine a property’s value and is well-versed in property laws.
Registration with Ejari
All rental transactions for commercial properties in Dubai are regulated by Ejari. Make sure that all the terms and conditions are mentioned in the rental agreement for registration with Ejari. This is one of the regulations for renting commercial property in Dubai to register Ejari.
Tenants can now pay their rent via the direct debit rental payments system in Dubai. This system benefits both landlords and tenants in terms of rent payment. It deducts the rental payment from the tenant’s bank account on the set due date, replacing the conventional cheque system.
Find the ideal location
Strong research is crucial when finalising a commercial property for rent in Dubai, a global business hub. The property’s location should be accessible to the targeted audience.
If it is an office space, the property must have a suitable parking lot for employee cars. Whereas, if you wish to set up a showroom or a shop, it must be accessible to public transport and other nearby amenities.
Moreover, based on the type of local authority for the trade licence, one can only rent a property, for business, available in that area. For instance, a trade licence for an onshore business allows you to set up a business in the same area.
If you are renting an office in Dubai, consider finding a location in these popular areas of Dubai:
- Jumeirah Lake Tower
- Business bay
- Dubai Internet City
- Bur Dubai
- Deira
- Al Barsha
- Sheikh Zayed Road
Design your budget
Setting your budget is an important step in renting a commercial property in Dubai. Make sure to design your budget in a way to includes all the hidden costs of renting in Dubai.
Apart from the property rent, the other costs you should be aware of include:
- Real estate agency fees
- Security deposit
- DEWA account activation charges
- District cooling deposit
- Dubai Municipality fees
- Ejari registration and renewal fees
A landlord has the right to increase the rent when renewing a tenancy contract. This is when the RERA rent calculator proves to be a useful tool. With this calculator, you can find out the average annual rental index for commercial properties in an area.
What To Do After Renting a Commercial Property in Dubai?
Now that you have landed on the right commercial property, there are certain arrangements you must make. Let’s go through what you must do after renting a commercial property in Dubai.
Set up your business
Once the rental agreement has been signed, choose an insurance company to cover business-related damage. You must also create a DEWA account and apply for water and electricity connections.
Also, get the required office furniture from any furniture store in Dubai. Be mindful of taking all these costs into account when setting the initial budget.
Obtain NOC, if changing the property’s interior
Making changes to the property’s interior is not required, but if you must, make sure you do it correctly. Keep in mind that you cannot change the interiors without acquiring permission. First, the landlord must agree to the clause and include it in your rental agreement.
Following that, the renter must acquire a Non-Objection Certificate (NOC) from:
- The proprietor
- The developer or building manager
- Dubai Municipality or the Free Zone Authority
Have a contingency strategy
Once your business is fully operational, you can better predict its future. One of the effective tips to rent a commercial property in Dubai is to have a contingency plan at your disposal if things do not go as planned.
There might be a time when the renter may opt to sublease the rental property in case of downsizing or having more rented space than needed. It is important to note that subleasing or subletting is allowed in Dubai.
In such a scenario, the renter must also be aware of the laws about ending tenancy agreements early in Dubai. Moreover, a tenant can exit the tenancy agreement early if it has been agreed with the landlord and mentioned in the early exit clause in the rental contract.
This is all about how to rent a commercial space in Dubai and the tips to follow during the process. Given the tax-friendly system and favourable trade laws, Dubai is an ideal destination to plan any business. If your business niche requires a warehouse, these tips on renting a warehouse in Dubai can be considered before going into legal obligations.
That said, if you want to rent a commercial space in Dubai and start your business, you can check out the following listings:
- Offices for rent in Dubai
- Warehouses for rent in Dubai
- Shops for rent in Dubai
- Showrooms for rent in Dubai
- Retail spaces for rent in Dubai
- Industrial spaces for rent in Dubai
Stay tuned to the UAE’s leading property blog for tips and tricks on property buying, selling and renting.