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Is Your Landlord Requesting a Single Cheque Payment?

Is Your Landlord Requesting a Single Cheque Payment?

As landlords demand full payment up front, the number of one-cheque contracts has clearly increased.

Landlords in Dubai are far more likely to want a single cheque payment. Especially those renting in freehold areas, where demand continues to outstrip supply in most places. Furthermore, it suggests a significant decrease in the number of landlords. Who were formerly willing to take several cheque payments, often up to 12 cheques.

In 2022, the number of tenants paying with a single check climbed by 6%. While the number of renters paying with four cheques fell by 4%, multiple check payments fell somewhat. (During the peak of Covid, a handful of landlords allowed tenants to pay via direct debit. They used their credit cards to assist them meet their obligations.)

The identical allegation is made by other real estate companies. According to which, landlords usually seek and get a single check in addition to lease agreements. “We are seeing a lot of that happen,” a real estate agent says, “particularly when the renter is a newbie to Dubai.” Landlords like to get all of their money in advance, so they are fully exploiting demand.

However, tenants will be at a disadvantage if they learn they must pay the whole yearly rent at once. While those whose employers manage the payment can do so, everyone else may find it difficult.

With landlords, the advantage is decisive.

Landlords found themselves in a favorable position due to rent increases of 20% or more in popular locations throughout 2022. Even in places where new homes were delivered in significant numbers, the majority of them were pre-let at higher-than-average rentals.

Rentals climbed by 36% on average last year. “Villa rentals climbed at the quickest pace because of the extreme lack of supply, which is particularly true for villas. It should be noted that rentals were quite low prior to and during the epidemic. Following that, they grew rapidly. Rents have usually remained below recent highs.

Another Year of Growth

According to industry insiders, rent increases will be greater overall in 2023, with new locations expected to catch up with 15-25 percent increases. Furthermore, the majority of today’s off-plan projects will not be finished and handed over for at least another two years.

Less Listings

More real estate businesses indicate that by November, there were fewer rental advertising emerging in Dubai, adding to the already-existing pressure on rentals. In 2021, the company handled 24% fewer listings than the previous year.

What do the rents seem to be?

An yearly lease for a two-bedroom flat in Business Bay would cost Dh105,526 on average, a 22% rise from the previous year. Local transportation to Downtown Dubai costs, on average, Dh125,814. That figure will be 21% higher in 2021.

A JLT site would continue to provide two-bedroom flats for less than Dh100,000, for an average of Dh91948, a 22% increase. Dubai Creek Harbour rent has risen dramatically to Dh104,808. Only the rate of year-over-year growth may slow in 2023. But only by a little margin…

More Blog:

Everything You Need To Know About Managing Your Dubai Property

 

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