Landlords in United Arab Emirates look at easy-pay rent schedules to retain tenants

Faced with the prospect of losing tenants and ensuing property vacancies in a soft rental market, rigid payment frequencies of years past are giving way to more flexible rental schedules, suggests a Dubai property expert. For years leading up to 2008, landlords across the UAE demanded a one-time annual rent cheque from tenants presenting hardships for those earning minimal salaries.

Since the last economic crisis, rent schedules have been staggered by some landlords to three or four cheques a month to entice tenants.

But now, with rents forecast to fall well into 2018, a small segment of landlords are making allowances for rent payments 12 times a year in order to keep existing tenants in their properties.

The easy-pay schedule could become more popular as more owners and landlords compete for tenants with better rent contract terms, said John Stevens, managing director of Asteco.

“Ultimately, yes, [landlords] are flexible and they are becoming more flexible,” he said. “In a few years’ time, we could see monthly cheques — landlords may start opting for that. Landlords are beginning to understand that it’s a competitive market and they have to attract tenants.”

In other countries such as Canada and the United States, 12 monthly cheques is the norm in many provinces and states where new tenants pay two months rent up front to cover first and last month’s rent. They also pay a security deposit that is refundable at the end of the lease if there are no damage to the property,

To protect landlords in the UAE, however, renters who pay monthly might be expected to pay a higher security deposit to guard against tenants abandoning their contractual obligations.

“Yes, we might be looking at a higher deposit levels of three months at least to cover them,” Stevens said.

Learn More

Personal Data Protection Policy

International Union of Tenants (IUT) will use the information you provide on this form to provide you updates on policies, events, publications and research related to our activities. This data is also used to customize your experience of our website and to improve our services.

At any time you have the right to access, correct and delete your personal information and object to the processing of your personal information. You can use these rights by sending an e-mail to the following address

International Union of Tenants (IUT) undertakes to respect and protect your personal information and personal integrity in accordance with applicable laws, industry rules and other relevant standards. We never disclose your personal information to third parties without your consent.