Rents in Dubai: Up to Dh20,000 discount on fewer cheque payments
One and two cheques dominate Dubai’s rental market, allowing tenants to get discounts of up to Dh20,000 and giving them the upper hand to secure a good deal with landlords, according to an agency’s study.
Strong demand continues to give landlords the power to negotiate favourable terms, prompting a gradual trend towards fewer rental payments.
According to property brokerage firm Betterhomes, one and two cheques accounted for 29 per cent and 28 per cent in the second quarter of the year, respectively — followed by four cheques at 26 per cent.
Three, six and 12 cheques accounted for less than 10 per cent each. Two- and three-cheque payments both increased by 2 per cent last quarter, with a 7-per-cent drop in four-cheque payments.
Liam Dawett, leasing manager at Betterhomes, said the prevalence of fewer cheque payments can be attributed to several factors, such as the increased likelihood of successfully securing the desired property when competing against other offers, and improved cashflow for certain tenants by covering their overall living costs. Companies providing housing allowances also often pay with one or two cheques.
Up to Dh20,000 rental discount
Property market players say good discounts of up to Dh20,000 are some of the major perks that encourage tenants to pay with fewer cheques.
“Paying rent in one or two cheques offers several benefits. Firstly, it helps in price negotiations during the finalisation of rental agreement. In addition, property owners often prefer one- or two-cheque payments over multiple cheques offered by other clients, putting the tenant in a favourable position, giving them the upper hand to secure the deal over competing offers,” said Dawett.
Depending on the property and the owner, annual rent could get slashed by Dh10,000 to Dh20,000 when paid in one to two instalments, he said.
On average, a drop of 5 to 10 per cent is offered to tenants against fewer cheque payments, he added.
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Echoing Dawett’s sentiments, Ayman Youssef, vice-president of Coldwell Banker, said that by choosing to pay with one to two cheques instead of 4 or more, tenants may potentially save around five to 10 per cent of the total rent amount.
Youssef said paying rent with fewer cheques reduces paperwork and administrative efforts, helps tenants plan their budget more effectively, and avoid the risk of incurring late fees.
“When multiple cheques are involved, the chances of a missed or delayed payment may increase, leading to potential penalties. Paying with fewer cheques minimises this risk and ensures timely payments,” he said.
Youssef added that one to two cheques are also beneficial for tenants who have irregular income streams, such as freelancers or self-employed individuals. “It provides greater financial planning flexibility, allowing tenants to align rent payments with their cash flow, be it on a quarterly or semi-annual basis.”
source: khaleejtimes
