What are the differences between leasing residential and commercial property?
Published Date: 27th Aug, 2024
What are the differences between leasing residential and commercial property?
Commercial leasing in Dubai is not without its difficulties, and not all landlords who attempt to enter the commercial market are successful, even though it can be quite profitable and offer a consistent and reliable source of revenue.
Before leaping, you should be sure that office leasing is the correct choice for you, regardless of whether you're new to real estate investing or a residential landlord looking to expand your holdings.
What obligations do owners of commercial real estate have?
It's crucial to understand all that goes into becoming a business landlord before making the leap if you're thinking about doing so.
There is no clear-cut division of duties between business landlords and tenants. A lot of it is determined lease by lease, and the lease agreement should precisely outline each party's obligations.
As an ordinary rule of thumb, the landlord is typically responsible for several significant duties. Maintaining the property's structural integrity comes priority. This entails making sure the building's façade and structure are secure and maintained, which may involve doing significant repairs to the roof and external walls. Any common spaces inside the building are often the responsibility of the commercial landlord as well. This entails overseeing these locations' upkeep and repairs and making sure they abide by the applicable health and safety laws.
What advantages come with leasing a commercial space?
It's accurate to say that business leasing seems difficult. It's possible. What then motivates so many landlords to switch from residential to business rentals? Although there are difficulties involved in handling commercial property rentals in Dubai, this business model also offers some significant advantages. Let us investigate what they are.
Excellent Return on Investment: Landlords typically charge higher rent for commercial properties than for residential ones due to the size and purpose of the facilities. Because commercial leases are more expensive than residential leases, they may provide a larger return on your investment and be a more profitable business strategy.
Less responsibility for maintenance and repairs – While home landlords are in charge of all maintenance and repairs, commercial landlords are typically only in charge of the building's structure, with the business tenant bearing the majority of the responsibility for keeping the interior of the space in good condition. As a result, the landlord will have less trouble and spend less on property maintenance.
Date: 27th Aug, 2024