Dubai: Tenants can use credit cards to ‘rent now, pay later’ as new monthly instalment scheme is announced

With the new platform, tenants will be able to spread their rent payments over 12 months

A UAE-based start-up has announced a ‘rent now, pay later (RNPL)’ scheme for residents in Dubai. Set to launch in July this year, the platform will let tenants pay their annual rent in monthly instalments using a credit card.

Rents in Dubai are typically paid in one to six post-dated cheques, two to 12 months in advance. Digital real estate investment management platform Keyper said with their new RNPL platform, tenants will be able to spread their rent payments over 12 months.

In an interview with Khaleej Times, Walid Shihabi, co-founder and CSO of Keyper, explained that the platform will charge tenants a premium to pay their rent in 12 instalments. The actual amount depends on the number of payments that the landlord expects.

He gave the example of an apartment with Dh100,000 annual rent to be paid in four cheques. “Keyper would offer the tenant Dh105,000 in 12 credit card payments (Dh8,750 monthly), which equates to a 5 per cent premium to go from four to 12 payments,” said Shihabi.