Fix n’ Lease is an investment strategy on Stake that focuses on acquiring undervalued or under-maintained properties, renovating them, and then leasing them to maximize value creation. Unlike Fix n’ Flip, Fix n’ Lease properties are held for the long term (around 5 years) and rented out.
1. Property Acquisition
We acquire vacant or underutilized residential units in high-demand areas of Dubai. These properties are specifically chosen for their potential to deliver higher value through renovation and stable rental income post-upgrade.
2. Renovation and Upgrades
After acquisition, the property undergoes a moderate renovation process, keeping costs low. A dedicated project manager oversees the entire renovation, ensuring timelines, budgets, and quality standards are met.
All renovation costs are factored into the upfront investment, so there are no surprise costs for investors.
3. Leasing for Income
Once renovated, the property is listed for rent to start generating stable monthly income. The upgraded condition often allows us to command higher rents and attract quality tenants, resulting in stronger yields than comparable non-renovated properties.
The first dividend is typically distributed after the renovation is complete, which is typically 3-6 months after acquisition.
4. Long-Term Holding and Appreciation
While improved rent is a key benefit, the core goal of Fix n’ Lease is to maximize overall ROI, not just rental yield. The renovations are expected to materially increase the value of the property, setting up potential capital gains over a longer holding period.
Important Considerations
Rental Income: Fix n’ Lease investments begin generating income after the renovation period, typically 3-6 months post-acquisition. Once leasing starts, investors receive regular monthly dividends.
The Stake Rental Guarantee does not apply to Fix n’ Lease properties due to the renovation period and delayed income start.
Capital Appreciation: The renovation significantly enhances the property’s market value, positioning it for higher long-term capital gains.
Liquidity: Investors can list their shares for sale through the Exit Window after the 1 year minimum holding period, or wait until the full property sale.