Paying rent monthly in UAE instead of cheques: How it works, costs explained

Paying rent in smaller monthly instalments instead of large upfront cheques is becoming an increasingly popular option for tenants across the UAE.

“I believe I was paying around Dh384 more per month, which to me was a totally acceptable amount of money for the flexibility,” said tenant Hasan Dada, who has been using a rent payment platform for over two years. “It is simply easier for me.”

Like many residents, Dada said he preferred the predictability of monthly payments over the traditional cheque system, adding that it helped him better manage his finances and savings. Another tenant, Pedro Torres, echoed the sentiment, saying the option “feels more aligned with how I manage my cash flow”, despite the additional fees involved.

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Platforms that allow tenants to pay rent monthly instead of upfront are gaining popularity across the UAE, with property experts noting that the model involves additional costs depending on the structure and provider.

Monthly payment services offer flexibility but can come at an additional cost.

Higher costs for flexibility

According to Rajneel Kumar, co-founder and COO of Rentify, tenants using such platforms may pay an additional 7 to 12 per cent annually on top of their rent, depending on factors such as credit profile and payment structure.

In practical terms, this means a tenant paying Dh70,000 a year in rent could pay around Dh7,000 extra over the course of the year, typically spread out across monthly instalments.

Other platforms, such as Rently, do not specify a fixed percentage, saying costs vary depending on factors like the number of cheques agreed with the landlord and whether the security deposit is included in the financing structure.

Platforms outline model

Companies operating in this space say the offering is designed to support cashflow management rather than reduce overall costs.

Shiv Mahajan, CEO of Rently, said the model is designed around “predictability and cashflow management rather than simply minimising cost”, adding that tenants are increasingly prioritising liquidity over headline price. “It is not solely about making rent cheaper. It is about making it manageable,” he said.

Kumar also said the model is structured differently from conventional borrowing, with payments tied to a housing contract and supported by bank-backed underwriting. Landlords receive the full rent upfront, while tenants repay in instalments based on their financial profile.

Both platforms said affordability checks are carried out before onboarding tenants, and that the system is designed to support timely payments.

Understanding the structure

Property professionals say tenants should understand how these services are structured and compare available options.

“Platforms that promise to pay rent on your behalf, with you paying them back on a monthly basis, can be a helpful option for tenants who need greater flexibility and support with upfront rental costs,” said Ben Crompton, managing partner at Crompton Partners Estate Agents.

He added that the structure should be clearly understood. “They are often Sharia-compliant, so only charging a profit, but tenants should understand how the model works,” he said.

He noted that tenants could alternatively take a bank loan to cover rent and should compare the total cost carefully. “The cost of borrowing from these companies varies widely… but it can be comparable to other forms of consumer finance,” he said. “Tenants need to assess what works best for them.”

Expanding demand, shifting market dynamics

Beyond individual affordability, the impact of these platforms is beginning to influence the wider rental market, according to Nitin Chauhan, partner at Pride & Property.

“The demand side of the market has expanded because of these products,” he said, noting that tenants who previously could not manage large upfront payments are now entering the market. “That matters well beyond the rental transaction itself… occupancy improves across more communities, including areas that were harder to lease before.”

Chauhan added that this has a direct impact on landlords, particularly investors, by reducing vacancy periods and improving leasing timelines. “The yield doesn’t change on paper, but the time it takes to achieve it does.”

Tenant behaviour is also evolving, with renters making more deliberate choices rather than being constrained by cheque structures. “The payment constraint used to push people into whatever was manageable… that’s changed; tenants are arriving with more genuine intent.”

This, in turn, is supporting landlords through stronger retention and more stable tenancies. At the same time, the availability of such platforms is gradually shaping expectations around rent payments. “The infrastructure is there now, and the conversation is starting from a different place,” Chauhan said, adding that landlords are becoming more comfortable with monthly payment models over time.

Rapid growth, shifting behaviour

Despite the additional costs, demand for such platforms is rising.

Kumar said Rentify has seen a 400 per cent month-on-month increase in new tenants and landlords joining the platform in recent months, reflecting growing interest in flexible payment options.

He added that adoption is largely driven by expat professionals accustomed to monthly rent systems in markets such as Europe and the US, as well as digitally savvy users seeking greater control over their finances.

The shift also reflects changing expectations in the UAE rental market, where tenants are increasingly prioritising flexibility over traditional payment structures. While landlords continue to receive rent upfront, tenants are moving towards smaller instalments alongside existing payment options.