The Landlords Path – A Pictorial Guide:
Discovery, Explanation, Understanding, Agreement & Sign-Up.
PREPARATION & MARKETING
Gathering Data, Videography, etc.
Web Publication of Lot Page.
REVIEW & AUCTION PERIOD
Consider tenant personal profiles & Pre-Auction offers.
Receive live bids
LEGALS & COMPLETION
AuctionsGlobal issue signed Tenancy Agreements to all
HouseUp coordinates transfer of cheques & keys.
I understand that you offer a no obligations appraisal service, what does this entail?
We would be delighted to engage in an initial consultation with you about your property (lot). We will advise you whether a letting via auction is the best way for you to achieve the highest price, attract the sort of tenant that you want, or a combination of both given your unique circumstances. We will outline to you the process, procedures and timeframe; and we will explain your options in respect of auction formats.
- Instant let – Prior to the opening of the auction period, should a bidder submit an opening offer matching the instant letting price set by you and published on the lot page then the auction will be cancelled, the tenancy agreement will be signed and distributed. The tenancy will commence as per the terms agreed.
- With Reserve – The lot will only let within the auction period at or above a pre-set price. This price is set by you the landlord.
- Open Market (Without Reserve) – The lot will let to the authorised bidder who submits the highest bid within the auction. There is no minimum price that must be exceeded.
I would like to proceed with the letting of my property at auction, what happens now?
You will need to complete our registration process which includes providing us with a certain amount of information. The details needed relate to the personal and about the lot you wish to let. In addition, you will need to set the specific tenancy conditions and agree to our terms.
Do I have to register before I can let my property via AuctionsGlobal?
Registration to let is compulsory for all landlords at all of our auctions.
What happens if I cannot complete the landlord identity requirements?
As an alternate you will need to supply certified copies of the required landlords details. Reach out to one of our team members for further assistance.
What component elements make up acceptable ID documentation?
- Passport and;
- Emirate’s ID and;
- Visa and;
- If not UAE resident, Driver’s licence
Should the registration application be made by a legal entity or multiple individuals please contact our office.
What is involved in the registration to let application process?
To be authorized to let your lot at auction we will need the following:
- Landlords personal details;
- Lot details:
- Description, photos, video, floor plan etc;
- Conditions of tenancy terms if any; and
- Information relating to any permissions and / restrictions held over the lot.
- Verifiable proof of ownership and entitlement to let the lot.
- Signed acceptance of our Auctioneer Terms.
- Signed acceptance of HouseUp’s Terms.
I understand that I need to retain the services of a licenced real estate brokerage, why is that?
We are a licensed specialist auction house, entitled to and experts at hosting auctions of real estate for rental and sale.
We are not a licensed real estate brokerage, we are not entitled to, nor experts at, coordinating and assisting landlords and tenants and their various associated third-party service providers complete the resultant transaction in a timely, correct and efficient manner.
OK, so if you are not a brokerage how do you square the circle?
Our shareholders established “HouseUp” (see houseuprealestate.com) a Dubai based licenced real estate brokerage to ensure that clients, just like you, are provided with a full 360 degree professional service.
From a practicable point of view the only obligation placed upon you is that you will be required to sign two sets of terms.
Do you issue me with terms of engagement for my records?
Yes, upon receipt and acceptance of your signed and completed application we will populate and provide you with a signed electronic copy of our auctioneer’s terms for your records. This contract outlines the services that we will provide, the charges that we will levy, the terms under which you have empowered us to market and offer your lot for rental and details of the obligations of each respective party one to the other.
Do you provide me with a personal point of contact?
Absolutely, we will assign an experienced member of our team, a project rental manager, to work alongside you. They will be your principal point of contact throughout our relationship.
As the landlord I set the tenancy conditions, what is so important about them?
In discussion with your appointed project rental manager, agreement will be reached in respect of any specific terms under which your lot will be available for rent at auction. Is price the principal driver or do such issues as the gender, family structure, pet’s etc. play a part in your decision making process. In addition areas such as, instant let price, guide price, reserve price, number of working days allowable to commencement of the tenancy etc. must be covered. The tenancy conditions are displayed within the lot page on our website and form part of the tenancy agreement to which both the landlord and tenant are party.
What preparatory work is necessary?
Your lot will be showcased on our website via its own unique numbered lot page. Directed by our project rental manager you will need to work co- operatively to assemble the necessary information, documentation and imagery needed, not only to best display your lot, but also to satisfactorily answer any due diligence queries that a prospective tenant might have. We typically allow one working week to gather, order and prepare for display this material, prior to the formal launch of the marketing of your lot.
What happens during the period leading up to the auction?
Our project rental manager coordinates the promotion and marketing of your lot. Educating potential bidders about the auction process and facilitating bidder registration. Both physical and virtual viewing and inspection can be arranged.
Your property will benefit from wide exposure through our extensive marketing campaign.
Social Media: We send regular notifications to our extensive database.
Website: Our website offers many features to bidders, including sophisticated search facilities, personalised “Watch Lists” and online real-time bidding options.
Targeted Marketing: In conjunction with this “wide marketing”, we target market individuals personally who have previously expressed an interest in similar properties.
How do you keep me informed throughout the process?
We provide you with a weekly progress update. Throughout the pre-auction period we log all enquiries of interest and our project rental manager maintains close contact with those who have expressed serious intent and interest, assisting them with registration to bid. Should, as is often the case, we receive any pre-auction offers we will present these to you for your consideration.
How do I go about selecting the “Right Sort” of tenant?
For many landlords money is not the only determining factor. They want a tenant who fits. Be that: Single, Couple, Male, Female, Age, Pets, Works from Home, etc.
We ask optional Personal Profile questions within the tenant registration section where they can get descriptive, from talking about themselves to indicating the monthly rent that they are happy to pay.
The landlord can review all relevant Personal Profiles within the pre-auction period and should they so wish select a tenant from their Personal Profile, cancel the auction and get the contracts issued.
What actually happens during the auction period?
Our secure online marketplace allows authorised bidders to participate in our auctions real-time from anywhere in the world. Your lot will be offered in its own auction period as agreed in consultation between ourselves.
At the close of the auction period if the lot was offered Open Market (without reserve), then on the fall of the virtual auctioneer’s hammer a binding contract is created between the landlord and the winning bidder. Both parties are legally obliged to complete the agreement, no further negotiation is allowed.
If the lot was offered with reserve and the reserve was reached then the above mentioned procedure is followed. If however a winning bid is logged which falls short of the with reserve figure then your project rental manager will discuss with you whether you wish to accept the low winning bid, re-auction the property or withdraw the property.
What does the Bidding Portal look like?
After the auction what happens prior to the tenancy commencing?
- Populate and electronically sign the tenancy agreement on behalf of both the landlord and the tenant.
- Distribute copies of the tenancy agreement, the specific tenancy conditions and our auctioneers’ terms, by which both parties have agreed to abide.
- Issue a “Success Listing Fee” invoice.
- Assist both the landlord and the tenant with the practicable issues pertaining to the commencement of the tenancy.
- Issue a “Success Commission Fee” invoice.
For details of fee rates please refer to the FAQ’s
What options does the landlord have during the pre-auction period?
The pre-auction period runs from when the property is publicly available to view on our website until three (3) hours prior to the published start of the auction period.
As per the Terms agreed between ourselves the landlord has the option, within this period, to select any registered prospective tenant based upon the personal profile that they, the tenant, have submitted. Should a landlord do so, the auction will be cancelled, the tenancy agreement will be signed and distributed and HouseUp, our sister company, will assist the landlord ensuring a smooth commencement to the tenancy.
All fees remain payable by the landlord as though the auction had been conducted.
What controls does the landlord have during the auction period?
There is an exclusivity period which ranges from three (3) hours prior to the start of the auction period until seventy two (72) hours after the close of the auction period. Within the exclusivity period the landlord is bound by the terms of the auction as defined and agreed in advance between AuctionsGlobal and themselves.
In advance of the auction period the landlord can place a with reserve price on the lot. Unless a bid is received which at least matches this price then they are under no obligation to accept any bid. As such there is no logical reason not to let the auction run its natural course as they are only obligated to accept the highest bid received if it at least matches the reserve price they themselves have set.
Additionally they can include any terms, however odd or demanding, within the tenancy conditions, to which both the landlord and tenant will be bound. However, they should be mindful that unduly onerous terms will likely deter bidders.
What is the relationship between AuctionsGlobal and HouseUp?
AuctionsGlobal is an auction house licenced by the Dubai authorities. Under licence number 961354 it is entitled to conduct auctions for the sale and rental of real estate.
HouseUp is a real estate brokerage licenced by the Dubai authorities. Under licence number 1079467 it is entitled to act as an intermediary in relation to both the selling and buying and the letting and renting of real estate.
Both companies enjoy common ownership, together they provide our clients with a perfect coordinated solution.
Can you really let my property for me in 24 hours?
After you have completed, signed and submitted your registration and we have processed and approved it; the answer is yes. Subject to the manner in which you offer your lot for rent at auction and also possibly your level of flexibility.
Have I got anything to lose by letting my property at auction?
We cannot think of anything. Here are the facts:
Neither we nor HouseUp charge anything upfront, we do not charge landlords for preparing the particulars, listing properties for auction and conducting auctions. We only generate income if we are successful on your behalf.
Remember, if you set a reserve price which is not at least matched you don’t have to let.
What is a Starting Bid Price?
This is the minimum acceptable opening bid price as determined by the auctioneer in consultation with the landlord.
What is a Guide Price?
This is the price we advertise and is just what it says it is; a guide. It provides prospective bidders with an indication of how much the landlord is likely to accept.
What is an Instant Let Price?
Prior to the opening of the auction period, it is the price that the landlord is willing to accept for the lot today. Should such an offer be received which at least matches this figure then the auction will be cancelled immediately. The tenancy agreement will be populated, signed and distributed. The instant let price, if set, will be displayed on the lot page on the website.
What is the difference between letting “With a Reserve” and letting “Open Market” (Without a Reserve)?
With Reserve – The lot will only let at auction at or above a pre-set price. This price is set by the landlord following discussions with AuctionsGlobal and is published on the lot page.
Open Market (Without Reserve) – The lot will let to the authorised bidder who submits the highest bid at auction. There is no minimum price that must be exceeded.
Can the landlord postpone the opening of the Auction Period?
Yes, under the terms agreed between AuctionsGlobal and the landlord they are within their rights to postpone the opening of the auction period up until three (3) hours prior to the opening of the unique auction period for the lot. After this deadline has passed, they are legally bound to accept a qualifying winning bid submitted within the auction period.
Can the landlord withdraw the lot from auction after the Auction Period has opened?
Under the terms agreed between AuctionsGlobal and the landlord they are within their rights to withdraw the lot from auction up until three (3) hours prior to the opening of the unique Auction Period for the lot. After this deadline has passed, they are legally bound to accept a qualifying winning bid submitted within the auction period.
How long does the Auction Period for a specific lot last?
Each lot is offered for rent in its own unique auction period as agreed between ourselves. The auction period is the period of time during which bidding is open for a Lot as published on the Lot page of the website. There is also an Exclusivity Period which lasts from three (3) hours prior to the opening of the auction period until seventy-two (72) hours after the close of the auction period.
What do you and HouseUp charge for your services?
Neither we nor HouseUp charge anything upfront, we do not charge landlords for preparing the particulars, listing properties for auction, or conducting auctions, rather we charge you for remits.
All fees are payable to HouseUp who levy both the “Success Listing Fee” charged at a rate of AED 600 (plus vat) and a Success Commission Fee” which will be agreed by negotiation prior to engagement.
Typically this fee ranges from 5-10% (excluding vat) of the value of the tenancy based upon a one (1) year agreement.