Dubai tenants choose single-cheque rent payment to avail discounts

Experts speak on the dos and don’ts that renters need to comply with

Renters in Dubai are still willing to pay their annual rent in one cheque in order to get fat discounts from landlords, which in some cases go up to 10 per cent, property agents say.

However, they point out that renters themselves are taking that extra effort to verify the ownership documents (original title deed and service charge payment receipts) and rechecking them with concerned departments/companies before making the payment.
Zubin Firozi, Head of Property Management, Head Office, Better Homes, says: “As long as renters have done their due diligence in making sure that they are renting a property from the actual owner or a legally authorised representative, then there should not be any uncertainty of paying in one single cheque.”
“All renters of property-managed units are provided with necessary documentation including proof of ownership and a copy of a power of attorney from the owner showing us as the appointed managing agents.
Bernard Aoun, Manager, Residential Department, SPF Realty, states the number of cheques is a negotiation tool when renting a property in Dubai.
“Some landlords are still asking for one cheque and others offer the flexibility of up to six cheques. Although the majority of our clients prefer paying in several cheques, as long as the proper documents are provided and the tenancy contract is pre-registered and/or registered in Ejari, the tenant can pay in one or several cheques.”
Parvees Gafur, Chief Executive Officer, PropSquare Real Estate, mentions: “If the payments are issued directly to landlord, the documents prove the same, and if there is a demand for single payment from landlord, tenants do accept the terms.”
He reveals they arrange for contracts between landlords and tenants directly and ensure that payments are directly made to the landlords.
“We try our best to have all the documents prior from the landlords and provide the same to the tenants at the time of signing the lease. Technically we do check genuinely credibility of the listing at the start before offering clients, and so far we have not faced any issues with our landlords.”
To sum up, he states: “It is to the tenant to choose the right partner and registered agents to help them find their home.”
In September, post the rental scam being reported widely in the media, the Real Estate Regulatory Agency, a subsidiary of the Dubai Land Department, issued a checklist for people looking to rent an apartment:
* Check the trade licence of the real estate company
* Check its approved activities according to its license from Department of Economic Development (DED)
* Check registration number and the brokers’ license from Rera.
* All the above information can be found on DLD’s website:
A property management company has to furnish a guarantee of Dh5 million to DED if they wish to offer property leasing and management service.
In case of any disputes (read: fraud), the rent committee can liquidate this guarantee to settle claims.
Renters should also ensure that they issue cheques only in the name of real estate management companies and get the contract registered on the Ejari so to receive a certificate assuring its official registration.
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