“Rent Now, Pay Later” Scheme: A One-Stop Solution for Dubai Residents To Seamlessly Pay Their Rents!

As per recent reports, a UAE-based startup called Keyper recently announced the ‘Rent Now, Pay Later’ (RNPL) scheme for Dubai residents, with the programme expected to be launched in July. Under this scheme, tenants can pay their annual rent using a credit card in monthly instalments. 

This new option of paying in instalments is in stark difference from the general practice, with residents in Dubai usually paying their rent in 1-6 post-dated cheques, 2-12 months in advance. According to the statement given by the co-founder and CSO of Keyper, Walid Shihabi, tenants will be charged a premium to pay their rent in 12 instalments, i.e., throughout the year. Note that this amount entirely depends on the total number of payments the respective landlord expects. 

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How Does the Scheme “Rent Now, Pay Later” Work? 

The RNPL scheme proposes a new rate to the tenant, which they can pay within the 12 months tenure. The tenant reviews the offer - if they accept it, they get connected to the landlord to proceed with the legal processing. Landlords can choose the option to receive their rent upfront in one payment, irrespective of whether the tenant accepts the offer or not. 

If the tenant chooses to accept the RNPL offer and the landlord declines the option of upfront rent, the latter will not incur any additional costs. In such a scenario, the tenant will make payments in 12 monthly instalments with a higher premium. Meanwhile, the landlord will receive the rent according to the original payment schedule of either four or six months.

Finally, when both parties accept the agreement and the contract is signed, the tenant’s credit card details are taken. Once the tenancy is active, the tenant can easily fetch the related information in a personalised dashboard with email. Additionally, the tenant will receive payment reminders via SMS. With the help of the dashboard, the tenant can conveniently manage their tenancy contract, add new credit cards, and even track payments. 

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Tenant Ends the Contract Early - What Will Happen Next? 

In situations like early termination of the contract from the tenant’s end, Keyper follows the industry standards and initiates a notice period. Additionally, the tenant is required to pay a cancellation fee mentioned in the contract. 

It’s worth taking into account that in such cases, the credit score of the tenant remains unaffected. 

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