Is it possible for you to pay a year’s rent in one cheque? Landlords in the UAE are eager to provide reduced rentals.
The UAE modified its rules last year to remove the threat of criminal prosecution for the issuer of a bad check. Due to this change in the legislation, tenants who sent checks to landlords no longer faced the same amount of sanctions for bouncing checks.
“The idea is that if they provide a lower rental but include a clause that the entire amount is paid up front, landlords won’t have to worry about collecting and cashing more checks throughout the duration of the contract,” said Firas Al Msaddi, CEO of fam Properties.
Landlords had to tighten their belts in order to minimize the danger of non-payment and protracted legal battles to reclaim money owed to them by renters. “Landlords are within their rights to safeguard their interests and receivables,” says an estate agent at a renowned property brokerage firm.
It’s possible that the tightening of pre-lease cheques is due to the fact that landlords are still getting acquainted with the new cheque restrictions. It should be a much easier process once they’ve gotten adjusted to the adjustments. Because paying up a single or two-part payment for a whole year is out of reach for the majority of tenants, the majority of landlords are still accepting multiple cheques.
“Based on the current market, we don’t see too many changes in the terms and conditions,” says H.P. Aengaar, CEO of Asteco, “but that may change once market mood shifts as additional properties become available.”
Until then, landlords will offer a lower rent to tenants who desire to make all of their payments at once. Would this be acceptable to the tenants?
Source: Property News AE