Abu Dhabi tenants could soon have the option of paying their annual rent in monthly instalments instead of writing one or more post-dated cheques, as a new digital payment platform backed by the emirate’s real estate authorities moves closer to launch.
Advanced Real Estate Services (ADRES), which is partnering with UAE PropTech company Keyper, said pilot deployments have already begun with three of Abu Dhabi’s largest landlords and property managers, with the first tenants and landlords expected to be onboarded in the fourth quarter of 2026.
The company said the Rent Now, Pay Monthly (RNPM) service has the support of Abu Dhabi’s real estate authorities and aligns with the emirate’s objective of fully digitising rental payments while giving eligible residents the option of spreading annual rent across monthly instalments.
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Under the model, tenants will make monthly payments by debit or credit card through the platform, while landlords continue receiving rent according to the tenancy agreement. ADRES said the service is a payment facilitation model rather than a credit facility, meaning it does not fall under the UAE Central Bank’s Debt Burden Ratio (DBR) framework.
A facilitation fee ranging from 4.75 per cent to 12 per cent of the annual rent will apply, depending on factors including the original payment terms and tenant eligibility.
‘Could open the market to more tenants’
Real estate professionals said the initiative could make renting more accessible, particularly for young professionals and newcomers to Abu Dhabi who often struggle to provide large upfront payments.
Simriddhi Singh of Scope Hauser Real Estate said the concept is likely to favour tenants more than landlords but believes owners will embrace it if payments remain secure.
“If there is a proper channel and they make sure the payments are going to come through to the owner on a regular basis, I think it’s a pretty nice approach,” she said.
She added that the model could particularly benefit residents working on project-based contracts or those who prefer not to tie up large sums of money in advance.
AbdulRahman Ibrahim Abu Faraj, CEO of Scope Hauser Real Estate, said the platform could significantly widen the pool of prospective tenants by removing one of the biggest barriers to renting.
“A lot of tenants don’t have the big upfront cash,” he said. “If someone is renting an apartment for Dh100,000 and the landlord accepts only two payments, the tenant needs Dh50,000 upfront. Sometimes that pushes people to look for cheaper properties or landlords offering more flexible payment terms.”
He said the system could prove especially attractive to young professionals seeking to rent in premium locations such as Saadiyat Island, where annual rents often exceed Dh150,000, as well as expatriates relocating to the capital who may not yet have immediate access to their savings.
Questions remain over implementation
While welcoming the initiative, brokers said more details are needed before the system is rolled out.
Abu Faraj said one of the key questions is how disputes would be handled if tenants stop making monthly payments after landlords have already received their agreed rent.
“I think there should be an escrow-type mechanism that protects both parties,” he said. “The process isn’t yet 100 per cent clear, but we’ve seen similar systems work successfully in other countries.”
He also suggested the platform should integrate with Abu Dhabi’s existing real estate systems to ensure tenancy records and any future disputes are properly managed.
The cost of the service could also influence adoption.
While Singh said a facilitation fee of around 4.75 per cent would likely not deter many tenants, Abu Faraj cautioned that charges approaching 12 per cent could make the option less attractive.
“If someone is paying Dh100,000 in rent, that effectively becomes Dh112,000,” he said. “At the higher end, it will definitely discourage some people.”
However, he believes many tenants may still accept a moderate fee in exchange for improved cash flow and the ability to avoid large upfront rental payments.
Source: Khaleej Times