Landlords approach change. Rental multi-cheques payment is growing.
Date: 16 July 2017
Monthly rent cheques are becoming more and more accepted by property owners, who start renouncing the one cheque payment for full year rent.
The one cheque concept has been dominant for many years in Dubai real estate market, especially for villas and apartment in the most wanted areas.
Within a market where rents prices are getting lower and new supply is expected to hit the market soon, it is natural that owners tend to ease the payment terms for their tenant in order to keep them, and give the landlord continuity to the generation of profit.
As a fact the number of tenants accepting to pay in a single cheque has declined by over 20% from 2016. The two cheque payment remains the most common option in the areas like Dubai Marina, Downtown Dubai, DIFC and the Palm, while four cheques has become more popular in Sport City and Al Barsha.
But it is not uncommon nowadays to see a Tenancy contract where the 12 cheques option is mutually agreed between landlord and tenant.
The multi cheques option is increasing the rental cash-in risk for the landlord, but is allowing tenants to manage better their salary and savings with less financial pressure, especially when new in Dubai and looking for a new place to live.