DUBAI: Landlords have been more insistent on annual rental payments being made upfront, specifically in areas where property ownership is unrestricted, known as freehold areas.
This tendency has resulted in landlords being less willing to accept multiple cheques for rent, and instead demanding a single lump sum payment.
As per the observation of Richard Waind, the Group Managing Director at property services firm Better Homes, there has been an increase in the number of tenants opting for single cheque payments in 2022.
Specifically, there has been a 6% increase in the number of tenants paying with one cheque and a 4% decrease in tenants paying with four cheques.
Property experts indicate that this is driven by the high demand for rental properties in these areas, leading landlords to take advantage of favorable market conditions.
As a result, tenants, particularly newcomers to Dubai, may struggle to afford such large payments and are facing challenges with this trend.
Additionally, landlords have been able to increase rents by a significant margin, with popular locations seeing increases of 20% or more.
The shortage of available properties, particularly villas, has also contributed to this trend.
