Dubai Introduces Flexi Rent Scheme Allowing Monthly Rent Payments

Dubai residents will no longer need to rely on loans or credit cards to cover large upfront rent payments due to the introduction of the Flexi Rent scheme by the Dubai Land Department (DLD).

Traditionally, many tenants in Dubai have resorted to personal loans or credit cards to finance the substantial annual rent cheques required by landlords. This practice often resulted in tenants incurring interest charges, effectively increasing the cost of securing housing.

The Flexi Rent initiative aims to address this issue by allowing tenants to pay their rent in flexible monthly instalments without increasing the total annual amount payable. This approach is expected to improve cash flow for residents and reduce their dependence on borrowing.

Rohit Bachani, co-founder of Merlin Real Estate, explained that many tenants have been quietly funding their rent payments through loans or credit cards, paying extra in interest just to afford their homes. He noted, "Flexi Rent dissolves that. Tenants can spread the annual rent across monthly, quarterly or semi-annual instalments, and the total payable does not change – a tenant paying monthly pays exactly what they would have paid on two or four cheques."

Industry experts believe the scheme will provide financial relief to tenants by eliminating the need to take on debt to meet rent obligations, while maintaining the same overall rental cost throughout the year.