Dubai Residents Can Soon Pay Rent in Monthly Installments

A start-up in the United Arab Emirates (UAE) has unveiled a new way for Dubai residents to pay their annual rent. Starting this July, the platform called ‘Rent Now, Pay Later (RNPL)’ will allow tenants to pay their rent in monthly installments using a credit card.

Unlike the traditional method of paying the rent with one to six post-dated cheques, Keyper’s platform will enable tenants to divide their payments over 12 months.

According to Khaleej Times, Co-Founder and Chief Sales Officer Keyper, Walid Shihabi, stated that the RNPL will charge a fee from tenants who will be paying their rent in 12 installments.

Giving an example of a residence with AED 100,000 annual rent, he added that Keyper will offer the tenant 12 credit card payments of AED 8,750 per month at a total cost of AED 105,000, charging a 5% extra fee. This amount will vary depending on the number of payments.

Shihabi further explained that the platform seeks legal approval from the landlord after the tenant accepts the offer. In addition, landlords can also choose to receive their rent upfront in one payment at a discounted rate, regardless of whether the tenant accepts the RNPL offer or not.

Following the required approvals, the contract between the landlord and tenant is signed digitally, and the tenant’s credit card information is gathered.

The tenant gains access to a customized dashboard, which sends payment reminders via email and SMS. Through the dashboard, tenants can monitor their payments, add new credit cards, and view their contracts.

As per Shihabi, if a tenant cancels their contract halfway through, the platform starts the notice period and charges the cancellation fee as mentioned in the contract signed by the tenant.

Via Khaleej Times