Dubai permits rent payments through credit cards
Dubai real estate market has announced the unique concept of making rent payments through credit cards. It was the leading property agency, Landmark, which made such an offer for its units in the Discovery Gardens.
One of the Landmark agents mentioned that credit card payments will be accepted only if the tenant opts to pay the whole year rent upfront.
In case the tenant wants to split the rent and pay on half-yearly basis or even monthly basis, the usual practice of post-dated cheques will be followed. The landlord may need some security.
All credit cards will be accepted, but no discounts will be offered. But, the banking experts have expressed skepticism about the offer.
But, looking at the negative aspect of such a process, the tenant will need a huge overdraft facility on the credit card, and even if the overdraft is repaid in monthly installments from the tenantís salary, accumulating interest will make it an expensive procedure.
Moreover, the banks may be reluctant to book a full-year rent payment on credit card, as such a payment could mean that a tenant is already struggling with other payments, and therefore stands a higher chance to default.
Posted on 27/7/2010
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