Is your CRM Software Facilitating Rent-Free Periods?

Rising vacancy levels have tipped the scales in favor of tenants, compelling both commercial and residential landlords to offer incentives such as rent-free periods to entice tenants in an overly saturated market.

CRM software can help you promote and manage your rent-free lease options with ease and proficiency.

What is a Rent-Free Period?

A rent-free period is period of time during a lease where the tenant does not have to pay any rent at all. Rent-free periods can be applied at various times in a lease. However, they are generally applied half way through a lease period, or at the end of a lease period. Additionally, rent-free periods range from market to market, and can range from a few months to several months time.

Rent-free incentives can be applied in different ways depending on the market, company policies, and negotiations taken place with potential tenants. Currently, there are two main avenues of applying rent-free periods within the UAE:

- The tenant lease period remains the same, however the rental amount is reduced during the rent-free period. For example, a 120,000 AED one year lease rental amount would be discounted to 100,000 AED a year.

- Adding additional months for free to the original lease period. For example, a 12-month lease period would be extended to a 14-month period for the same monetary value of the initial lease agreement (i.e., 14 months for the price of 12 months).

Different Types of Rent-Free Periods

Rent-free periods as a form of enticement - A landlord may offer a potential tenant a rent-free period as an incentive for a tenant to sign a lease for their residential or commercial property. For example, 14 months rent for the price of 12 months, with the first two month being a rent-free period. This is particularly true with commercial property, in areas where the market is saturated and leases are governed by the property market.

Rent-free periods for recognition of a fit out - When a tenant makes upgrades to a commercial space to include wholesale structural changes, they may be compensated for their efforts with rent-free periods. Additionally, when a residential tenant makes repairs to a property (such as painting, gardening, and other minor repairs) they may be offered a period of free rent during their lease as compensation for their efforts.

How Can Masterkey CRM Help Facilitate Rent-Free Periods?

With the right CRM, you can effortlessly manage you traditionally leased and rent-free leased properties.

- Lead Generation - With CRM, real estate professionals can consolidate information across all of their lead generation sources - in one place. CRM software organises and collects all contact information so managers can access client information from various platforms (i.e. desktops, laptop, phones, etc.). This access also allows you to share you rent-free promotions across a wide range of platforms, to include the internet and social media.

- Communication and Invoice Generation -CRM allows you to effectively communicate with your tenants. Masterkey CRM makes it easy for admins and real estate brokers to generate invoices where users can select which invoice the rent-free period is applied to by adjusting the due dates to include the rent-free period.

- Reduce Human Errors - CRM ultimately reduces human errors for rent-free periods as it guides the user to apply the rent-free period correctly and saves time!

- Contract Generation - CRM allows a rent-free period to be printed on Lease Agreements automatically so this information is communicated properly and clearly in all legal documents.

- Manage property information and track listings – CRM software helps property managers track all of the important details related to every property in their portfolio, to include both rent-free and standard leases.  


- Screen applicants – CRM software simplifies application screening. From answering potential tenant queries to conducting background checks, property management software allows managers to instantly respond to tenants regardless of the time of day or your location.


Masterkey Real Estate Property Management Software

At Masterkey, we've integrated CRM into every component of our customisable software solutions. Whether you are an agent, broker, or developer, our software solutions provide real estate professionals with the tools they need to maximize resources to achieve increased profitability and growth.


Masterkey CRM can help property managers, agents and brokers facilitate their rent-free periods. Consider the two scenarios can be catered for as follows:

- Giving a Discounted Rent Value - Masterkey CRM is designed to enable users to overwrite the rental amount with a reduced/discounted rate to renewals and new leases. Additionally, all rental invoices will be generated to reflect the discounted rent-free period rental amount.

- Giving Rent-Free Months - Masterkey CRM allows users to select how many months they would like to include in their rent-free periods when creating a new lease or a renewal. Our CRM program is designed to accommodate flexible lease terms, and allows agents to easily include customised rent-free periods from lease to lease. Once the rent-free terms are applied, the system will auto-calculate the rental amount to include the rent-free period. The Rent-Free period can also be applied against a specific rental invoice period.

Contact a member of our team to schedule yourfree demo today!

Picture (1): User selecting number of Rent-Free months.

Picture (2): System auto calculating contract rent amount in a Rent-Free period scenario.

Picture (3): User selection of which invoice to apply Rent-Free period to.

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