For Landlords/Owners

Commercial Property for Landlords and Owners

If you’re a commercial property owner and are planning to lease it, then this is the right place. Based on our rich experience, we have shared some crucial information on lease arrangements that every landlord/owner should know. Take a look:

Can parties amend the Commercial lease terms unilaterally?

Legally, the Dubai Landlord and Tenant law don’t have provisions that allow parties to amend the lease terms unilaterally. 

The UAE Civil Code Article 267 deals with contract termination. However, it does not permit a valid contract to cancel. You can do it mutually or through the court.

Thus, an agreement is crucial for the lease to amend.

Can a tenant under keep open requirements breach its lease contract as the government announced mandated closure mandated?

Well, as announced by the Dubai government, it’s unlikely that the landlord or owner can take any action against it. Thus, the lease contract is likely to have a compliance requirement with all authority and statutory requirements.

lease contract
commercial lease

Do payments of rents get excused because of forced Majeure?

Some commercial leases contain a clause on force majeure. It permits the tenant to terminate or suspend the contractual obligation. Therefore, if such a clause exists, then read the wordings carefully. It will help with the correct implementation and no breach. You need to understand the provision’s scope. It will help you understand if the non-payment of rent doesn’t breach the contract.

What are the actions that tenants can take if facing financial issues in paying the rent?

Rent is a source of extra income on commercial property for landlords and owners. Therefore, the tenant must first check the lease terms and insurance policies to start a dialogue with the landlord. Some landlords also offer support to tenants. This support includes revised plans and rent waivers.

What actions can you take if the tenants don’t pay rent due to business interruption?

Contractual terms are essential to start with before taken any action. They will help both sides know and review their rights.  Ideally, both sides should converse and resolve issues amicably. It will help avoid a serious legal issue. However, a landlord can always pursue a claim against the tenant for not paying rent. For this, reach out to the DRDSC (Dubai Rental Disputes Settlement Center).

Also, the landlord can seek the tenant’s eviction through a 30 days’ notice if they fail to pay rent. This is as per Article 25 of the Dubai Landlord and Tenant Law.