The days of landlords demanding a single cheque to pay for a year’s rent are fading, with payments decreasing by nearly a third so far this year, according to a Dubai-based real estate broker.
Allsopp & Allsopp said one cheque payments were down by 28.3 percent in early 2021 compared to the year-earlier period as more owners are being more flexible amid the ongoing coronavirus pandemic.
Lewis Allsopp, CEO of Allsopp & Allsopp, said that the rental market in Dubai is recovering from the pandemic and in some cases, performing better than pre-Covid.
Allsopp said: “Pre-Covid-19, we were seeing more of a trend to increase cheque payments and the lockdown accelerated that. Some owners are now asking for fewer cheques again but overall more owners are appreciating that they need to offer increased cheque payments – gone are the days that companies pay for rent in one cheque.”
The brokerage also reported an emerging tenant trend of short-term, month by month rental enquiries as a result of job losses or financial strains.
Allsopp added: “Post-Covid-19 lockdown we had many enquiries from residents looking to rent on a short-term basis, so much so that it prompted us as a business to open up a short-term lettings department. The pandemic has changed the lives of many people and tenants and landlords alike are now less inclined to commit to yearly contracts.
“We have noticed that tenants are looking into their options, making sure they are safe in their jobs before committing to a tenancy contract where they are locked in for a year. Landlords are becoming more inclined to let their property short-term for some of the same reasons. They are looking for flexibility with their property and in some cases steering away from a locked in a contract where a year’s notice needs to be given before they can sell the property.”
Lewis Allsopp, CEO of Allsopp & Allsopp.
Allsopp & Allsopp data showed a slight rental price increase, especially in higher-end properties, adding that the demand for high-end luxury homes has increased with Palm Jumeirah villas renting before listings get a chance to go live.
The brokerage also reported an increase in landlords receiving the asking price for their properties.
Allsopp said that in February 2020, 22 percent of landlords achieved the asking price for their property compared to 37 percent last month.
“This is encouraging considering that there has been such an increase from before lockdown even began. For those tenants who are not yet ready to enter the market as a buyer are still looking for a property to call home,” he added.
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