Tuesday, July 29, 2014
Share |

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

blog comments powered by Disqus

Recent Articles

New Visa fee system in UAE from next month

Line-up of Eid Al Fitr celebrations across Dubai

Spiralling rentals in Dubai drives more tenants to northern emirates

Free parking, additional operational hours by Metro in place for EID

Dubai to focus on hosting global exhibitions and events

Disabled-friendly park likely in Dubai by 2016

UAE works to make its first foray into the Red Planet by 2021

UAE residents hope for extended Eid holidays

Major diversion works for Dubai Canal Project underway

UAE e-labour cards mandated; violation to cost Dh1000 for every month

 



Top