Multiple Cheques Gaining Popularity

One of the most difficult obstacles when leasing property in Dubai is the customary “one cheque” policy. It’s true that rent is expensive in the Emirate, but perhaps more problematic is the burden of scrounging up an entire year’s worth of rent all before the lease is signed.  For many people, this forces them to seek less expensive accommodation than they otherwise would, purely because they aren’t sitting on a pile of cash from which to pay. 

Thankfully, market forces tend to satisfy consumer demand, and this has become apparent in recent months as landlords are increasingly accepting 2, 4, or even 12 postdated cheques from their tenants.  While this usually means slightly higher total rental costs, it significantly alleviates the cash flow for many individuals.  Furthermore, tenants can certainly invest the saved money, gaining interest during the year before their subsequent cheques are due.   

While this trend is not yet universal, landlords are increasingly realizing the value for both themselves and their tenants.  Allowing multiple cheques helps landlords find tenants more quickly, as there is a greater pool of able payers. Also, landlords realize tenants are less likely to leave for cheaper accommodation after the year is up because of the decreased out-of-pocket burden.

While this trend has its critics, it is a sign of a maturing and more stable market.  If you’re considering a new lease in Dubai, this is a great time to take advantage of the multi-cheque phenomenon.

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