Fit-Out Period (Dubai)

Fit-out periods are more common in commercial real estate transactions, where a landlord may grant a tenant 1–6 months of free occupation to complete a commercial fit-out before the business opens. In residential tenancies, shorter rent-free periods of 1–4 weeks are occasionally offered as an incentive in a soft market.

From a legal standpoint, the fit-out period must be clearly defined in the tenancy contract — including the start date of the rent-free period, its duration, and the date from which full rent becomes payable. The Ejari registration should reflect the contract start date (not the rent-free end date) so that the full tenancy term is properly documented.

Any works carried out during a fit-out period require the landlord's written permission. In commercial properties, a detailed fit-out specification agreed with the landlord is standard. Structural changes require both landlord approval and municipal permits. At the end of the tenancy, the landlord may require the tenant to reinstate the property to its original condition — this 'make good' obligation should be addressed in the fit-out agreement.

Disputes occasionally arise about fit-out periods when a tenant is late completing works or when the landlord disputes what was agreed. For this reason, a well-drafted fit-out agreement — separate from but referenced by the main tenancy contract — is advisable for any tenancy with a significant renovation component.