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Your management agreement: term, renewal, notice and exit

How your management agreement runs from signature to handback: initial term, renewal, notice periods, what happens to bookings already on the calendar, and the settlement and handover steps when management ends.

LandlordsUpdated 25 October 20269 min read

Do

  • Give notice as early as you can if you intend to sell, move in, or change operator, so the calendar can be closed off cleanly.
  • Tell us in your notice the exact date from which you need vacant possession, so we can stop taking bookings that would run past it.
  • Expect the effective handback date to be the later of your notice expiry and the check-out date of the last confirmed booking.
  • Accept that revenue from bookings that run past your termination date is settled in the normal monthly cycle after those stays complete.
  • Allow us to deregister or cancel the permit for the unit on the agreed date, so the registration record matches reality.
  • Arrange your own permit, or your incoming operator's permit, only for dates from the deregistration date onward.
  • Keep the unit's Ejari, title deed copy and NOC documentation available, as the incoming operator or you will need them to register.
  • Tell us as soon as the unit goes to market, so we can plan viewings around guest stays.
  • Serve notice in the normal way to the timetable your sale requires, rather than waiting for completion.
  • Tell your buyer, in writing, which dates are already committed to confirmed guests.
  • Book viewings through us. We will arrange access around occupancy, and we will not enter an occupied unit with a third party without the guest's agreement.

Don’t

  • Do not contact a confirmed guest directly to move, shorten or cancel their stay.
  • Do not list the unit with another operator, or on any platform, for dates that are already committed under our agreement.
  • Do not change locks, access codes or building access permissions while confirmed guests still hold a reservation.
  • Do not assume a verbal conversation, a WhatsApp message to a team member, or a broker's instruction counts as notice. Notice must be in writing to info@deluxehomes.com.
  • Do not begin short-term letting under another operator's permit while our permit is still live on the unit. Overlapping registrations create a compliance exposure for you as the owner.
  • Do not market the unit for short-term stays yourself before deregistration is confirmed in writing.
  • Do not give a broker independent access to the unit or share access codes with them.
  • Do not commit to a vacant-possession completion date that falls before the last confirmed check-out without checking the calendar with us first.
  • Do not assume the buyer inherits the agreement. It does not transfer automatically: a Change of Ownership amendment is signed by us, you and the buyer, even if the buyer will not stay with us.

Your management agreement is the single document that governs our relationship with your property. It sets out what we are authorised to do on your behalf, how income and expenses flow, and how either side ends the arrangement. This article explains how that agreement runs in practice. Where the signed agreement and this article differ, the signed agreement prevails.

What the agreement covers

When you sign, you appoint us to market, let and operate the unit as short-term holiday accommodation. That appointment carries specific operational consequences you should understand before you plan any change.

  • We hold and operate the DET (formerly DTCM) holiday home permit for the unit, and we are the party accountable to DET (formerly DTCM) for guest registration and compliance.
  • We list the unit on our own channels and on partner and OTA platforms, and we contract with guests in respect of those stays.
  • We collect guest revenue, apply agreed deductions and expenses, and pay you the balance on the 15th of each month, or the next working day where the 15th is a non-working day, covering the previous month.
  • We hold keys, access cards and access-control credentials for operational use, and we maintain the linen, inventory and consumables required to trade the unit.
  • You remain the owner of the asset and remain responsible for the obligations that attach to ownership, including service charges, mortgage obligations and building compliance.

Term and renewal

The agreement runs for an initial fixed term from the commencement date stated on your signature page.

ItemPosition
Initial term12 months
RenewalRenews automatically for further 12-month periods, unless your agreement has a special clause that excludes renewal or sets a fixed end date
Notice to prevent renewalWritten notice from either party before the current term ends
Notice to terminate during the termEither party may terminate. Owners give the notice in their agreement — usually three months, two months (or less) in some agreements — and need not give a reason; an early termination fee may apply
Form of noticeWritten notice from your registered email address to the legal notice email address in your signed agreement. A signed hard copy or registered post is not required

Notice runs from the date we acknowledge receipt in writing, not from the date you send it. Always ask for that acknowledgement and keep it.

The rule on confirmed bookings

This is the part owners most often misunderstand, so it is stated plainly.

Serving notice does not cancel bookings. Every reservation confirmed before your notice takes effect is a contract between us and a guest, and it stands. Those stays will be honoured to their scheduled check-out date, even where check-out falls after your termination date.

The operational reason is simple. Cancelling a confirmed guest exposes the unit and us to relocation costs, compensation claims and OTA penalties, and it damages the listing performance that determines what your property earns. Where the OTA is the contracting party, their cancellation policy applies to that booking and we cannot override it.

Exception. If you need dates released for a genuine emergency, a forced sale completion or an owner move-in that cannot wait, contact us on +971 (4) 392-0202 before you commit to anything. We will tell you what is actually cancellable and what it costs. If a confirmed reservation cannot be honoured because of your request, the agreement makes you liable for liquidated damages equal to the total rental value of every affected reservation. Any early termination compensation is assessed separately under your signed agreement.

How to serve notice

  1. Check your signature page for the commencement date and the notice period that applies to you.
  2. Send written notice from the email address registered on the agreement to the legal notice email address in your signed agreement, stating the property, the unit number, your intended termination date and the reason (sale, owner use, change of operator, other).
  3. No signed hard copy or registered notice is needed when the notice comes from your registered email address.
  4. Obtain our written acknowledgement confirming the effective termination date and the date of the last confirmed check-out.
  5. Wait for the stop-sell confirmation. We will close the calendar for all dates from your effective date and stop accepting new reservations for the unit.
  6. Agree a handback date and time with us in writing.
  7. Complete the handback inspection and the final settlement as set out below.

Stop-sell and the run-off period

Between your notice and the handback there is a run-off period. During that period the unit continues to trade normally, and normal terms continue to apply, including your obligations to fund approved maintenance and to keep the unit lettable.

  • Calendar closed to new bookings beyond the effective date
  • Existing confirmed bookings listed, with the last check-out date identified
  • Any pending owner stay or owner block confirmed against the calendar
  • Outstanding maintenance, repair and replacement items agreed and scheduled
  • Utilities, internet line and building access arrangements confirmed for transfer or disconnection
  • Final settlement date confirmed
If the unit becomes unlettable during the run-off period, for example because a required repair is not funded or the building withdraws access, we may have to relocate guests. If you obstruct operations — for example by disconnecting utilities or changing the locks — the agreement sets fixed liquidated damages per occurrence plus a daily amount until it is resolved, on top of actual costs, fines, guest refunds and third-party claims. Check the Existing Reservations, Owner Obstruction and Early Termination provisions of your signed agreement.

Permit and regulatory handback

The DET (formerly DTCM) holiday home permit is issued against an operator. It does not transfer with the keys.

Handback of the property

Handback is a physical process with a written record. Both sides sign it, and it is what protects you if something is later found missing or damaged.

  1. We remove our operational items from the unit, including our linen, towels, consumables and any equipment we own.
  2. We complete a final clean and prepare the unit for handover after the last guest checks out.
  3. We meet you or your representative at the unit for a joint inspection against the signed inventory.
  4. We record the condition, meter readings and any outstanding items in a handover report and both parties sign it.
  5. We return all keys, access cards, fobs, parking access devices and building credentials in our possession, and we surrender any access held with the building management or concierge.
  6. We remove our access from smart locks, cameras where fitted, and any building portal registered in our name.
  7. We deactivate listings and remove the unit from all channels.

Items provided by us, as distinct from items belonging to the property, are ours to remove. If you want to retain any of them, ask before handback and we will quote a transfer value.

Exception. If the unit is served by a temporary 5G router supplied by us pending a permanent internet line, that router is our equipment and is removed at handback. Arrange your own connectivity before the handback date if you intend to continue letting.

Final settlement

Money does not stop on the handback date. Stays completed before handback, and stays that run past it, both settle in the normal cycle.

  • Revenue for completed stays is paid on the 15th of the month, or the next working day where the 15th is a non-working day, covering the previous month.
  • Deductions continue to apply to those stays, including agreed commission, expenses incurred and any approved maintenance already carried out.
  • Guest security deposits held against stays that have not yet completed are released in the normal way after check-out and inspection.
  • Any balance you owe us, for example for funded maintenance or replacements, is set off against your final payout.
EventWhen it settles
Last stay before handbackIn the monthly cycle following the month of check-out
Stay that checks out after handbackIn the monthly cycle following the month of check-out
Deposits and damage claimsAfter the relevant guest inspection closes
Final reconciliation statementNo fixed timeframe — it is issued once the final reconciliation of outstanding charges, expenses and payments is complete

Selling the property while under management

A sale does not automatically end the agreement, and completion dates slip. Treat the two processes separately.

Termination by us

We may also end the agreement. The grounds and the notice we must give are set out in your signed agreement, and we always tell you the reason. Where the unit can no longer legally or operationally be managed or take bookings, the standard notice period may not apply. In practice, the situations that lead there are structural rather than commercial: loss of the ability to hold a valid permit for the unit, a building or developer prohibition on short-term letting, unresolved habitability or safety issues, or non-payment of amounts you owe.

Where we terminate, the same booking rule applies. Confirmed stays are honoured, the calendar is closed forward, and handback and settlement follow the process above.

Owner stays and blocks during the term

You can use your own property during the term. Owner stays are booked through us so they appear on the calendar and do not collide with a guest reservation, and a cleaning fee applies to owner stays. The current fee is shown and kept updated in the owner portal.

An owner block requested after a booking is confirmed cannot displace that booking. Block your dates early. Late requests are subject to the same constraint as termination: a confirmed guest stays.

Contact

For notice, handback scheduling or a question about how your term runs, contact us on +971 (4) 392-0202 by phone or WhatsApp, or email info@deluxehomes.com. Formal notice must be sent by email to info@deluxehomes.com and acknowledged in writing. In an emergency at the property, contact local emergency services first, then tell us.

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