Landlords in Dubai open to multiple rent cheques

dubai — Residential tenants in the UAE have benefitted from falling rents and a growing willingness by landlords to accept multiple cheques in recent years. But an expected real estate recovery could again spur property owners to demand fewer installments from renters.

A decade ago, putting down an entire year’s rent upfront was the norm and those tenants whose employers did not offer such advances were often forced to borrow from the bank.

Gradually, greater competition among landlords helped ease the burden on tenants and two to three cheques became the norm, with four cheques also common, albeit with renters often having to pay up to 10 per cent extra for the privilege of not paying a full year in advance.

“The market has seen some power return to tenants — they can start to dictate more terms and the amount of cheques is often one of those negotiation points,” said Lukman Hajje, Propertyfinder Group CCO.

Few tenants ask to pay in more than four cheques and it is rare for a landlord to accept a request for six cheques, said Mark Towers, managing director of brokerage Edwards and Towers.

“We believe we are some way off a market where 12 cheques or payments are the norm and as the market improves landlords will try to reduce the amount of cheques again,” said Towers.

— business@khaleejtimes.com