Dubai launches 'Rent Now, Pay Later' service for tenants

The Dubai Land Department has officially launched the "Rent Now, Pay Later" initiative, exclusively through Emirates NBD credit cards. According to the department's website, the initiative allows tenants to pay annual rent in convenient monthly instalments over six or 12 months, while landlords receive the agreed amount covered by the service upfront. Earlier, Al Bayan and Emarat Al Youm reported that the Dubai Land Department was planning to launch an affordable rental initiative through a "Rent Now, Pay Later" service in cooperation with a local bank. The move was aimed at providing more flexible solutions for tenants and improving access to housing. Sources told at the time that the initiative would enable individuals to rent residential units without paying the full annual rent upfront. Instead, the amount could be paid in instalments over periods of up to 12 months, without interest being charged to the tenant under the proposed mechanism. The sources explained that under the new service, the tenant selects the property they wish to rent, after which the bank pays the full annual rental amount to the landlord. The tenant then repays the bank through instalments over flexible periods of up to 12 months at zero interest. Service details The department said eligible tenants can choose an instalment plan of six or 12 months, subject to Emirates NBD's eligibility criteria and credit assessment. The option to pay the full amount in a single payment remains available. It said the service covers the amount agreed between the landlord and tenant, whether that is the full annual rent or part of it. The bank manages the tenant's subsequent payments independently of the landlord-tenant relationship. The department noted that the instalment plan does not include security deposit amounts. The landlord receives the amount covered by the service upfront without having to wait for the tenant's monthly payments. Activating the service The department said activation begins with the landlord, who must create a new residential tenancy contract or renew an existing one through the Dubai REST app. The landlord then selects the "Rent Now, Pay Later" service and specifies the amount agreed with the tenant. The next step requires the landlord to enter the correct International Bank Account Number (IBAN) and account holder name, sign the contract, and send it to the tenant for review and approval. In the second stage, the tenant receives a notification presenting the service offer. The tenant reviews and approves the contract details, then makes payment using an eligible Emirates NBD credit card. They select either a six- or 12-month instalment plan, confirm the payment and receive transaction details along with a downloadable receipt. An Ejari registration certificate is also issued, and the landlord receives the agreed amount covered by the service upfront. The service is subject to applicable fees. Regarding service fees, the department said Emirates NBD charges a processing fee of 1% of the transaction value, while Noqodi charges a fee of 1.5% of the transaction value. Both fees are borne by the tenant. The Ejari registration fee is collected separately through the Dubai REST app at a cost of AED177.50. All applicable fees are displayed before payment confirmation. According to the cost calculator available on the department's website, covering a rental amount of AED100,000 requires a bank processing fee of AED1,000, a CashOwner fee of AED950 and an Ejari registration fee of AED177.50, bringing the total estimated cost to AED102,127.50. The calculator shows that the estimated monthly payment for this amount would be AED8,510.63 under the 12-month instalment plan. The department clarified that the calculator provides estimated costs for guidance purposes only. Monthly payments, fees and the total amount due are displayed during the payment process before confirmation and remain subject to applicable terms, conditions and final approval. The department said several conditions apply to participation in the initiative, including holding an eligible Emirates NBD credit card, being an individual tenant, renting a residential property in Dubai, and using the service for a new tenancy registration or renewal. It clarified that the service is available only to individual tenants of residential properties in Dubai and does not extend to companies or commercial properties. The department added that passing the initial eligibility check does not guarantee approval or a specific instalment plan. All applications remain subject to Emirates NBD's eligibility criteria, credit assessment and final approval, as well as the service's terms and conditions. Eligibility verification Prospective users can access a quick eligibility-check tool on the department's website. The tool includes four questions covering whether the applicant holds an eligible Emirates NBD credit card, whether the tenant is an individual, whether the property is located