Flexibility in Dubai’s Rental Market A Win-Win for Tenants and Landlords
In the recent past, there have been changes on the part of the landlord in the rental market of Dubai, which are more favorable for tenants and flexible payment system. This flexibility is most apparent in the new generation building where landlords are accommodating the multiple cheque payment requirements by the tenants and sometime come up with rent free period as part of tenant enticement.
Newer Buildings Offer More Flexibility
Handed over properties which are newly constructed have landlords who are more likely to agree to the rental term and conditions most preferred by the tenants. Most of these landlords accept many cheques due to low occupancy levels, they are willing to accept cheques up to 12 in a year. This has facilitated better management of cash flow for the tenants and relatively lesser financially straining than the one or two cheque payment.
Institutional Landlords Leading the Change
Some of the major players like Wasl properties are coming up with options of monthly payment and accepting any form of payment that may include electronic transfers. This not only creates demand for other tenants to also occupy the building but also improves on the turnover rate of landlords to have steady returns with less chances of having a vacant building for long.
The elasticity of rent has been realized to be a strategic factor among the increasing competition in renting houses in Dubai. New residential units have been added to the market, which together with the instability in demand has helped the tenants to have better bargaining powers. Consequently, the landlords are exercising various measures that will make their tenanted buildings occupied all the time and in this way they exercise more tenancy friendly practices.
Rent Now, Pay Later Schemes
Others that are emerging include schemes such as the ‘Rent Now Pay Later’ popularized by digital players such as Keyper. These schemes help to enable the tenants to pay the rentals in instalments of 12 months, which relieves them of large initial charges. This model is advantageous to the tenants as it relieves them of huge financial burdens with landlords enjoying the full amount of the agreed rent from the platform.
Reviewing the changes in the rental market in Dubai shows new tendencies toward more openness and tenants’ orientation. This is also not a simple act of following the market trends but also due to the best strategy of the landlords who engage in it just to guarantee the constant tenancy of their property and constant revenue of rent from the property. But as Dubai develops and draws in more people as residents, such terms are certain to improve and make the renting of residential space more convenient to both the tenant and the landlord.