Many landlords are becoming more flexible with payment options for tenants and are issuing fewer eviction notices, according to industry experts.
“With demand at an all-time high and rental prices steadily increasing, many landlords are providing more flexible payment terms,” said Lewis Allsopp, chairman of Allsopp & Allsopp.
Rental demand in Dubai is growing quickly, with over 140,000 new residents moving in within the first 11 months of 2024. “Most are looking for rental homes. To promote fairness in the rental market, the Dubai Land Department launched the Rera rental index, which helps both landlords and tenants understand their rights regarding rent increases and eviction notices,” he added.
Allsopp noted that their data from the third quarter of 2024 showed most tenants now prefer to pay rent in 6-8 cheques, demonstrating greater flexibility from landlords and improved affordability for renters.
Tenants in Dubai are increasingly choosing multiple cheque payments, as paying with one or two cheques has become difficult due to high rental prices, which are nearing all-time highs.
In the first nine months of 2024, rental prices continued to rise, with average apartment rents increasing by 19% and average villa rents by 13%, according to real estate consultancy CBRE.
The number of rental contracts registered has also grown year-on-year compared to 2023, mainly due to a 14% rise in renewal contracts, while new registrations saw a slight decline.
Zhann Jochinke, chief operating officer at Property Monitor, mentioned that there is evidence suggesting more tenants are choosing to stay in their current rentals as landlords issue fewer eviction notices and accept more flexible payment terms.
“While the traditional ‘one cheque’ payment method might offer better deals for tenants, many now prefer the more flexible, multi-cheque option. It is increasingly common for landlords to accept six or even 12 cheques, especially when they have a trusting relationship with their tenants,” Jochinke said.
