In Dubai, tenants can soon tap ‘rent now pay later’ funding on their home leases

In Dubai, tenants can soon tap ‘rent now pay later’ funding on their home leases

Dubai: Having difficulty paying the rent? Then, solutions are at hand as lenders start extending ‘pay later’ funding to help Dubai residents meet their rent obligations.

The rental commitment is typically paid off to the landlord by Keyper, as a single payment or spread over 3-4 cheques, and then the tenant pays back in monthly instalments.

The ‘rent now, pay later’ model is an extension of the bigger ‘buy now pay later’ (or BNPL) financing that had taken off in the UAE with consumers looking to buy mid-sized purchases. These BNPL programs come at 0 per cent interest and need to be paid off in 4-6 months.

Easier to pay rent digitally

Dubai Land Department recently made it possible for rental commitments to be paid to landlords through online banking/payment channels, doing away with the need to collect cheques. For the tenant, it also means that they do not have to ensure enough funds are available in their accounts in advance.

But with rents rising by 20 per cent on average in Dubai’s heavy-demand residential districts, meeting the rent requirements have become tougher for many. Especially for those hit with steep spikes at the time of renewals.

“Keyper allows tenants that are starting a new tenancy