Keyper, a UAE-based startup, has created a scheme ‘Rent Now Pay Later’ initiative for the residents of Dubai. This service will allow the tenants to pay their yearly rent in monthly installments by using a credit card or debit card. This facility is set to launch in July.
The current rental system in Dubai follows one to four or six cheques in a year and should be paid 2 to 12 months in advance.
Keyper to revolutionize the rental payment schemes beneficial to both tenants and landlords
Keyper is a real estate investment management application that does various tasks like property management, portfolio monitoring, and digital payment solution. This platform will facilitate the tenants to spread their payment across the 12 months.
RNPL works on the principle of a buy now pay later business model. This allows consumers to make online purchases instantly and then distribute their repayment over installments completely interest-free.
The tenants will be requested to furnish a salary certificate or three months of bank statements to confirm that they are receiving recurring income that will work as a source to help them cover the rent.
This scheme will allow occupants to keep tabs on their payments, and add new credit or debit cards in addition to getting access to their tenancy agreement through the tenant dashboard on the Keyper’s mobile application.
The tenants will not be charged a monthly fee for this RNPL option. They will have to pay a higher rent based on the frequency of the payment. The occupant will have to pay a late payment fee of Dh 500 if they miss out on a card payment.
Although there will be no interest levied for the late payment. But if the tenant continuously misses their payment due for 30 days or more, the company will proceed with the legal path with the Real Estate Regulatory Agent.
The Co-Founder and chief executive of Keyper, Omar Innab mentioned to the sources about the benefits of using the scheme. This initiative provides the occupants with reward points or miles. He said that they would be evolving the system to work on direct debit as well. This platform will deduct the stipulated amount from your bank account every month.
By giving the tenants the capacity to pay their rent in 12 installments, the landlords will be benefiting from increased tenant retention rates in addition to risking late or missed payments.
Keyper’s chief executive said that this payment option will effectively diminish the debt burden on tenants. He added that when people transfer to Dubai, they are prone to face the struggles to find a proper house and pay a broker commission, the deposits, and the landlord’s usually demanding rent payment in 1 or 2 cheques.
It is also difficult for existing occupants because most of them receive their income on a monthly basis. But this scheme provides them the opportunity to pay along with their cash flow.