Why auction?
Take command: The landlord takes control of the calendar, they choose their timeline by selecting the date by which they want their property to be let by, and they decide the terms of the letting, whether to offer Instant Let in advance of the Auction Period or whether the property is auctioned “With a Reserve Price” or “At Open Market Price”.
Speed: The entire process, from instruction to completion and exchange of contracts, can be concluded within as little as 24 hours. Typically our landlords have a deal agreed in good time to suit their individual timeframe. But as a guide expect less than 20 working days.
Transparency: A rental property auction is totally transparent and provides the landlord with the assurance that the best possible deal has been achieved in fair and open competition.
Certainty: Renting a property at auction offers the landlord an exceptional degree of certainty. A binding legal contract is formed on the fall of the hammer. The tenant is committed and no further negotiation is allowed.
Best price: When presented and marketed professionally a rental property auction generates a significant number of bidders. The auction bidding process is competitive and will help the landlord achieve the best possible price on the day.
Why AuctionsGlobal?
We are unique: We are the only licenced auction house in Dubai focused on the traditional residential rental real estate marketplace.
A huge network of tenants: We have a vast database of tenants who are all looking for properties.
Our great friendly and professional team: We appreciate that this may be your auction debut so we are here to assist you every step of the way.
Getting started
Intrigued, interested and want to find out more? Your first step to a successful rental auction is to get in touch with our team.
Pricing, in consultation with you, we will outline the various pricing strategies for your property – we will look at Guide Price, Instant Let, Starting Bid Price, Reserve Price and Open Market Price (without reserve).
Guide price, this is the price we advertise and is just what it says it is; a guide. It gives bidders a realistic idea of how much you are willing to accept as the guide price will typically be within 20% of the reserve price; higher or lower. Don’t be surprised if the advertised guide price value of your property is lower than the price advertised via a traditional brokerage. The price in both types of lettings is just a starting point. On the open market, potential tenants will usually try to negotiate the price down, while in an auction, we aim to drive the price up. The most successful property let’s have a guide price which generates interest and triggers competitive bidding. An attractive guide price can result in a higher letting price.
Instant let, this is a price set by you the landlord which you are happy to accept today, pre-auction. If a prospective tenant makes an offer which matches or exceeds this price the auction will be cancelled immediately, the tenancy agreement will be populated, signed and distributed.
Starting Bid Price, this is the minimum acceptable opening bid price as determined by the auctioneer in consultation with the landlord.
Reserve price, this is the minimum price that you are willing to accept for your property. It protects you from having to let for less than you are happy with. If the reserve is not met, the property does not let. Rather we will continue to market the property as “Available for Offers” after the auction.
Open market price, at the close of the auction period if the property was offered at open market price 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 tenancy agreement, no further negotiation is allowed.
How are you protected as a landlord?
Setting a reserve price protects you from having to let your property for less than you are willing to accept.
All bids at auction are binding in law. At the conclusion of the auction the bidder, who has placed a qualifying “winning bid”, i.e. it has matched or surpassed any reserve price placed by the landlord on the property or who has placed a bid that the landlord has decided to accept, has entered in to a legally enforceable contract with the landlord and is obliged to enter into the tenancy agreement.
The registration process
You will need to complete a one time registration with both us AuctionsGlobal and with our sister company HouseUp. We are licenced to conduct auctions whilst HouseUp are registered as a real estate broker and as such can represent you as the landlord in your contractual relationship with the tenant. You will need to provide us with information relating to you, the landlord personally, and about the property you wish to let. In addition you will need to agree to our term and conditions and appoint HouseUp as real estate broker.
But do not worry, a member of our team will get in touch when it is convenient and guide you through the whole procedure.
What do you 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.
The preparatory process
Your property will be showcased on our website via its own unique numbered Property Page. Co-ordinated by a member of our Project Rental Team, we and you will co-operatively assemble the necessary information, documentation and imagery needed, to best display your property,
The pre-auction period
A time period determined by you during which we send notifications to our extensive database and list of registered users and authorised bidders and communicate with those who have previously expressed an interest in similar properties.
Selecting the right tenant
It’s not always just about the money, a unique part of our registration process invites prospective tenants to articulate, in a Personal Profile, not only what monthly rent they are prepared to pay but also why a landlord should pick them as the tenant.
You can determine in the pre-auction period that you wish to engage with prospective tenant (A) or (B) or (Z). Should you so decide the auction will be cancelled and the tenancy agreement will be populated, electronically signed and distributed.
Keeping you informed
We log all enquiries of interest and should, as is often the case, we receive any pre- auction offers we will present these to you for your consideration.
What happens during the auction period?
Our secure online marketplace allows authorised bidders to participate in our auctions digitally real-time from anywhere in the world. Your property will be offered for rental in its own unique auction period, as determined by you.
At the close of the auction period if the lot was offered at Open Market Price then on the fall of the virtual auctioneer’s hammer a binding contract is created between the landlord and the winning bidder and both parties are legally obliged to complete the agreement no further negotiation is allowed.
If the property 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 Team member will discuss with you whether you wish to accept the low winning bid, re-auction the property or withdraw the property.
What happens after the auction?
As per the terms agreed in advance by you and all authorised participating bidders we will populate and electronically sign the Rental Agreement on behalf of both you as landlord and the tenant. We will distribute copies to you, and the tenant.
Remember auctions are fast. So in most cases, depending upon when the property becomes available for the tenant, you will be handing over the keys immediately. HouseUp will assist both the landlord and the tenant with all matters relating to the commencement of the lease.
What happens if the auction does not reach its reserve price?
If your property does reach its reserve price, do not give up. We will continue to advertise your property on our website for one calendar month after the auction period and will inform you of any offers.
