Many landlords are becoming flexible in terms of payment from tenants and are also issuing fewer eviction notices, say industry executives.
“With demand at an all-time high and rental prices continuing to increase steadily, many landlords are offering more flexible payment terms,” said Lewis Allsopp, chairman of Allsopp & Allsopp.
Rental demand in Dubai is increasing rapidly, with over 140,000 new residents arriving in 11 months of 2024. “The majority are looking for homes to rent. To promote transparency and fairness in the rental market, the Dubai Land Department launched the Rera rental index, empowering both landlords and tenants with the knowledge of their rights regarding both rent increases and eviction notices,” he said.
Allsopp added that their third-quarter data of 2024 revealed that most tenants chose to pay their rent in 6-8 cheques, reflecting enhanced flexibility from landlords and increased affordability for tenants.
Tenants in Dubai are increasingly opting for multiple cheque payments, as one or two cheque payments have become challenging due to high rents – which reached nearly all-time highs.
In the first 9 months of 2024, the upward rental trend continued almost unwaveringly, with 19 per cent growth in average apartment rents and 13 per cent growth in average villa rents, according to real estate consultancy CBRE.
Rental contracts registered have continued to increase year-on-year compared to the same period in 2023, primarily supported by a 14 per cent increase in the total number of registered renewal contracts, whilst new registrations declined marginally, it said.
Zhann Jochinke, chief operating officer, Property Monitor, said anecdotal evidence points to more tenants staying in their existing rental property as landlords issue fewer eviction notices and accept more flexible payment terms.
“While the traditional ‘one cheque’ payment method can mean a better rental deal for tenants, most prefer the more flexible, multi-cheque option. It is becoming increasingly common for landlords to accept six, or even 12, cheques, especially in cases where they have a trusting, harmonious relationship with their tenant,” said Jochinke.
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