One cheque rental demands 'on the wane'

RENTAL DEMANDS: Experts are predicting the end of the one cheque demand from landlords for their properties. (Getty Images)

Real estate experts in the UAE are predicting the end of the 'one cheque' rental payment system.

New arrivals to the country are often shocked to discover that they are required to pay 12 months’ rent in advance to secure tenancy contracts.

In its quarterly report on the Dubai residential market, the consultancy Colliers International said it expected a “shortening of advance rent payment terms as landlords become increasingly competitive”.

And, almost half of the respondents to an online survey by the UAE-based website propertyfinder.ae said they paid their rent with more than one cheque, with 22 per cent saying they paid quarterly, reported UAE daily The National on Sunday.

Steve Roberts, the general manager of the estate agency Platinum Homes Dubai, told the paper: “The one-cheque scenario isn’t the norm as much now. Landlords have been put in a position where they need to be more flexible. In general, we will deal only with landlords who ask for four cheques.”

And with so many new apartments coming onto the market every day, landlords have been forced to be more competitive in both their payment terms and rental rates.

Michael Lahyani, the chief executive of propertyfinder.ae, told the paper that those who were still demanding one cheque up front were pushing their luck.

“They will initially ask for one cheque, but once you get to closing the deal and he sees you have the money and are serious about renting the place, most will loosen up a bit and be happy with three or four cheques.”

Mr Lahyani said landlords would rather accept multiple postdated cheques than risk leaving the property vacant for any length of time.

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