Facility Rental Agreement

Facility Rental Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

"I need a Facility Rental Agreement for a 5,000 square meter warehouse in Dubai Industrial City, starting from March 1, 2025, with specific provisions for 24/7 access and temperature-controlled storage areas."

Document background

The Facility Rental Agreement is a crucial legal document used in the United Arab Emirates for establishing a formal rental relationship between facility owners and tenants. This agreement is essential when any party wishes to rent out or lease a facility, whether for commercial, industrial, or specialized purposes. The document must comply with UAE Federal Law No. 5 of 1985 (Civil Code) and relevant emirate-specific rental regulations. It covers comprehensive details including facility specifications, rental terms, payment structures, maintenance responsibilities, and usage conditions. This agreement is particularly important in the UAE's dynamic real estate market, where facility rentals form a significant portion of commercial transactions. The document provides legal protection for all parties involved while ensuring compliance with local municipality requirements, zoning regulations, and safety standards.

Suggested Sections

1. Parties: Identification and details of the facility owner/landlord and tenant, including trade licenses if applicable

2. Background: Context of the agreement and brief description of the facility and its intended use

3. Definitions: Definitions of key terms used throughout the agreement

4. Facility Description: Detailed description of the rented facility, including location, size, and included amenities

5. Term and Renewal: Duration of the rental period, commencement date, and renewal terms

6. Rent and Payment Terms: Rental amount, payment schedule, security deposit, and other financial terms

7. Permitted Use: Specified purposes for which the facility may be used

8. Maintenance and Repairs: Responsibilities of each party regarding facility maintenance and repairs

9. Utilities and Services: Responsibility for utility payments and available services

10. Insurance Requirements: Required insurance coverage for both parties

11. Access and Security: Rules regarding access to the facility and security measures

12. Termination: Conditions and procedures for early termination

13. Governing Law and Jurisdiction: Applicable UAE laws and jurisdiction for dispute resolution

Optional Sections

1. Fit-out Works: Include when tenant is permitted to make modifications to the facility

2. Subletting and Assignment: Include when subletting or assignment rights are granted

3. Operating Hours: Include for commercial facilities with specific operating time restrictions

4. Environmental Compliance: Include for industrial or commercial facilities with environmental impact

5. Parking: Include when parking spaces are part of the rental agreement

6. Common Areas: Include when facility is part of a larger complex with shared spaces

7. Force Majeure: Include specific provisions for unforeseen circumstances

8. Marketing and Signage: Include for commercial facilities requiring exterior signage or advertising

9. Health and Safety: Include specific health and safety requirements for specialized facilities

Suggested Schedules

1. Schedule 1 - Floor Plans: Detailed floor plans and measurements of the facility

2. Schedule 2 - Inventory List: List of furniture, equipment, or fixtures included in the rental

3. Schedule 3 - Service Charges: Breakdown of service charges and maintenance fees

4. Schedule 4 - Handover Protocol: Condition report and handover procedures

5. Schedule 5 - Building Rules: Specific rules and regulations for facility use

6. Schedule 6 - Maintenance Schedule: Regular maintenance schedule and responsibilities

7. Appendix A - Required Permits: Copies of necessary permits and licenses

8. Appendix B - Insurance Requirements: Detailed insurance requirements and coverage limits

9. Appendix C - Utility Agreements: Relevant utility connection agreements and procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok��˰� | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Real Estate

Commercial Property

Industrial Manufacturing

Retail

Hospitality

Healthcare

Education

Logistics and Warehousing

Office Space Management

Entertainment and Events

Sports and Recreation

Technology and Data Centers

Relevant Teams

Legal

Operations

Facilities Management

Real Estate

Finance

Procurement

Risk and Compliance

Administration

Property Management

Asset Management

Business Development

Relevant Roles

Facility Manager

Property Manager

Real Estate Director

Operations Manager

Legal Counsel

Contracts Manager

Business Development Manager

Chief Financial Officer

Commercial Director

Procurement Manager

Asset Manager

Leasing Manager

Compliance Officer

Risk Manager

General Manager

Administrative Manager

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