The property rental market in Dubai is seeing a transformative shift, with the new ‘Rent Now, Pay Later’ (RNPL) mode of payments gaining fast traction with both tenants and house owners, helping rental services firms offering the payment option to gain market share significantly, industry insiders said.
The trend is also leading to higher tenant retention in the city, as the new payments mode enables better cash flow management for tenants, aligning with their monthly income cycle, while house owners get to maintain their preferred payment schedules.
While rental services ventures such as Keyper which are in the forefront to promote the RNPL mode are said to be fast gaining market share, several other firms are learnt to be readying plans to get on to the bandwagon.
The firms which offer the RNPL option allow tenants to pay monthly rental checks and offer landlords the options to encash the 12-month payments either upfront or in 2-4 instalments while mitigating the default risk by following a stringent tenant screening process.
Keyper said that since the launch of the new rent payment mode, the company has processed over 20,000 applications for RNPL, with more than 90 per cent of applicants accepting its offers.
“This response highlights the significant demand for cash flow-friendly rental solutions, especially given that rent often constitutes the largest household expense in Dubai,” Walid Shihabi, Co-Founder and CSO of Keyper, told Arabian Business.
“This innovative model bridges the gap between tenant preferences and landlord requirements, making the rental experience smoother for both parties,” he said.
Senior executives in few other companies who are either launching or planning to launch the new model said RNPL is emerging as a ‘win-win’ as it allows alignment of rent payments with monthly income for tenants, while providing the flexibility to house owners to either cash out outstanding rent at any point or receive the full rent upfront at the lease’s start.
RNPL a game-changer
Industry experts said RNPL is fast emerging as a game-changer in Dubai’s rental market amidst the surge in the influx of expats for job-related relocations or for seeing jobs.
The new payment mode brings down the huge financial burden of paying 12-month upfront rental for prospective tenants, especially for young and upstart professionals, they said.
Shihabi said for landlords, the new model also enhances the attractiveness of their properties as more and more tenants are now preferring the RNPL mode while looking for rental properties.
“Listings with the RNPL option are currently seeing significantly higher tenant interest, as monthly payment flexibility is a top priority for many renters.
“This increased demand also leads to faster leasing and reduced vacancy periods,” he said.
The Keyper Co-Founder said payments are automatically processed through the company’s digital system, ensuring timely transfers and eliminating the hassle of manual collections.
“This automation minimises administrative burdens and enhances the overall rental experience,” he said.
The automated screening, involving tenants scanning their Emirates ID and securely connecting their bank account using Open Banking to verify income, ensures that only financially capable tenants qualify for RNPL, minimising risks for all parties.
Once approved, tenants can sign their tenancy agreements digitally and add their payment card to the systems of rental services offering RNPL options such as Keyper, enabling the firms to automatically deduct rents on pre-agreed dates.
Incidentally, the Dubai Land Department (DLD) recently signed a Memorandum of Cooperation with Keyper to build a unified digital rent payments platform for the emirate.
The platform is for enabling landlords and tenants across the emirate to transition from traditional payment methods, such as cheques, to fully digital transactions, and the initiative is in line with DLD’s vision to modernise the real estate sector.
The new payment mode increases tenant retention
Industry insiders said RNPL has had a noticeable impact on tenant retention as well, as they are seeing a surge in cases of tenants opting for renewing their leases with RNPL-enabled properties.
Even when tenants move to a new home, they often recommend RNPL to their new landlords, illustrating the strong demand for this flexible payment model, they said.
“These trends indicate that RNPL is not just a payment solution but a transformative shift in how tenants approach renting in Dubai,” the Keyper Co-Founder said.
He said to address landlords’ concerns about monthly payments, companies such as Keyper take on the financial risk through comprehensive tenant screening.
“Every RNPL applicant undergoes rigorous eligibility checks, including income verification via secure Open Banking integrations. This ensures that only financially capable tenants qualify for RNPL, safeguarding landlords against potential defaults,” he said.
Shihabi said additionally landlords can choose the company’s ‘upfront rent’ option, allowing them to cash out their entire rental income for the lease term in advance, further reducing financial uncertainties.
“These assurances position RNPL as a secure and profitable option for landlords in Dubai.”
Industry insiders said RNPL has also contributed to market transparency and fairness, besides aligning Dubai’s rental practices with international standards.
“This (the flexible payment option) makes the city more competitive for attracting global talent.
“As RNPL gains popularity, we anticipate its role in reshaping Dubai’s rental market to continue growing,” Shihabi said.
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