Dubai, United Arab Emirates: Dubai Flexi Rent went live on Tuesday, allowing tenants to pay rent monthly instead of handing over one or two large cheques a year, the Dubai Land Department said.
The system changes the rental model from annual, bi-annual, quarterly or four-cheque contracts. The department said the scheme aims to ease financial pressure on tenants and make housing more accessible.
Gulf News reported that tenants can choose payment schedules based on options offered by landlords and property management companies. The available schedules include monthly, quarterly and semi-annual instalments.
Twelve real estate firms signed on for the pilot, including Wasl Properties, Deyaar Property Management, Dubai World Real Estate, Modern Real Estate, Dubai Investment Real Estate and SBK Real Estate. Rocky Real Estate, SRG Properties, Harbour Real Estate, Driven Properties and Al Showaib Real Estate are also part of the rollout.
Current tenants on annual or multi-cheque contracts can contact their landlords or management companies to request a switch to Flexi Rent terms. Payment methods include credit cards, debit cards and cheques.
The scheme may also include grace periods, revised schedules, promotional offers, and, in some cases, waived administrative fees. Dubai Land Department will monitor occupancy rates, Flexi Rent contracts, payment compliance and tenant feedback during the pilot.
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Dubai Land Department data showed about 1.2 million tenancy contracts were registered last year. Officials expect flexible payments to reduce tenant defaults while helping landlords maintain occupancy rates.