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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